D&B Announces Strong Second Quarter 2005 Results; Expects Continued Strength in 2005 Second Half.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 20 Percent before Non-Core Gains and Charges; Up 24 Percent on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Basis --Core Revenue up 10 Percent; Up 8 Percent before Foreign Exchange --Total Revenue on a GAAP Basis up 1 Percent; Down 1 Percent before Foreign Exchange, Primarily Reflecting the Impact of Divested Businesses --Announces Acquisition of LiveCapital(R) for $16 Million to Complement Risk Management Capabilities 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, 2005. "In the second quarter, D&B once again delivered strong growth in revenue, 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. and 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. , while continuing to invest in our brand and customer value proposition," said Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Alesio, chairman, chief executive officer and president of D&B. "Our U.S. business, which accounts for the majority of our revenue, once again reported strong organic revenue growth and profitability. Additionally, during the quarter we made progress addressing the challenges in our International business. With our proven track record of growth, and our plans to continue to invest in our business, we are confident our success is sustainable." Second Quarter 2005 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, 2005, were $0.73, up 20 percent from $0.61 in the prior year quarter. On a GAAP basis, diluted earnings per share were $0.67, up 24 percent from $0.54 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 revenue for the quarter was $351.7 million, up 10 percent compared with the prior year quarter. Core revenue was up 8 percent before the effect of foreign exchange. Core revenue results for the second quarter of 2005 reflect the following by customer solution set: --Risk Management Solutions revenue of $248.0 million, up 10 percent (up 8 percent before the effect of foreign exchange); --Sales & Marketing Solutions revenue of $80.4 million, up 6 percent (up 5 percent before the effect of foreign exchange); --E-Business Solutions revenue of $16.7 million, up 39 percent; and --Supply Management Solutions revenue of $6.6 million, down 11 percent (down 12 percent before the effect of foreign exchange). See attached Schedules 4 and 5 for additional detail. Total revenue for the quarter was $351.7 million, up 1 percent compared with the prior year quarter (down 1 percent before the effect of foreign exchange). The decline in total revenue year-over-year was due to the impact of the divested international businesses that had revenue of $28.8 million in the second quarter of 2004. Operating income for the quarter was $83.5 million, up 15 percent from the year-ago period, before non-core gains and charges in both years. Strong growth in the U.S. was partially offset by a decline in operating income in the International segment. On a GAAP basis, operating income was $76.2 million, up 18 percent from the year-ago period. During the quarter, the Company also incurred transition costs of $8.1 million as compared to $6.0 million in the prior year quarter. See attached Schedule 3 for additional detail. Net income before non-core gains and charges was $51.4 million for the quarter, up 14 percent from $45.0 million in the prior year period. On a GAAP basis, net income was $47.1 million, up 19 percent compared with $39.5 million in the prior year period. See attached Schedule 3 for additional detail. Free cash flow for the first six months of 2005, excluding the impact of a $15.8 million legacy tax payment made during the first quarter of 2005, was $127.6 million, up 8 percent from the first six months of 2004. 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. . Net cash provided by operating activities, excluding the $15.8 million legacy tax payment, was $137.2 million for the first six months of 2005, up 7 percent from the prior year period. On a GAAP basis, net cash provided by operating activities was $121.4 million, down 5 percent from the prior year period. Share repurchases 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. during the quarter, under the Company's $400 million two-year program, totaled $60.8 million, with $99.9 million repurchased year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. under that program. The Company ended the quarter with $245.3 million of cash and cash equivalents. See attached Schedule 4 for additional detail. Second Quarter 2005 Segment Results As outlined in the Company's 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. for the year ending December December: see month. 31, 2004, filed with the Securities and Exchange Commission (SEC) on March 14, 2005, D&B began reporting the results of its business in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of as part of its International segment in the first quarter of 2005. Prior to 2005, the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. results were reported as part of the 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. All references to 2005 financial results in this release have been adjusted to reflect this change. See attached Schedule 7 for 2004 revenue and operating income results of the U.S. and International segments adjusted to reflect this change. 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. Total and core revenue for the quarter was $253.7 million, up 7 percent from $236.1 million in the prior year period. U.S. total and core revenue results for the 2005 second quarter reflect the following by customer solution set: --Risk Management Solutions revenue of $165.3 million, up 7 percent; --Sales & Marketing Solutions revenue of $66.8 million, up 7 percent; --E-Business Solutions revenue of $16.1 million, up 34 percent; and --Supply Management Solutions revenue of $5.5 million, down 12 percent. See attached Schedules 4 and 5 for additional detail. Operating income for the quarter was $82.3 million, up 17 percent from the prior year quarter. This increase was due to improved revenue in the U.S. segment and benefits from the Company's Financial Flexibility program. International Core revenue for the quarter was $98.0 million, up 15 percent (up 10 percent before the effect of foreign exchange) from $85.0 million in the prior year quarter. During the second quarter, International core revenue was positively impacted by the price increase in the Company's Italian real estate data business. This was outlined in the Company's Form 10-Q Form 10-Q See 10-Q. for the quarter ending March 31, 2005, filed with the SEC on May 5, 2005. The Italian real estate data business contributed 9 percentage points of growth driven by the acquisition of RIBES S.p.A. and the price increases. International core revenue results for the second quarter of 2005 reflect the following by customer solution set: --Risk Management Solutions revenue of $82.7 million, up 17 percent (up 12 percent before the effect of foreign exchange); --Sales & Marketing Solutions revenue of $13.6 million, up 3 percent (down 1 percent before the effect of foreign exchange); --E-Business Solutions revenue of $0.6 million; and --Supply Management Solutions revenue of $1.1 million, down 8 percent (down 13 percent before the effect of foreign exchange). See attached Schedules 4 and 5 for additional detail. Total revenue for the quarter was $98.0 million, down 14 percent (down 18 percent before the effect of foreign exchange) compared with the prior year quarter revenue of $113.8 million. This decline was due to the impact of the divested international businesses that had revenue of $28.8 million in the second quarter of 2004. See attached Schedule 6 for additional detail. Operating income for the quarter was $21.3 million, down $1.7 million or 8 percent, before non-core gains and charges, as compared to $23 million in the prior year quarter. This decline was primarily due to lower operating income in the UK as a result of lower revenue and the loss of income from the Company's divested businesses, partially offset by strength in other international markets and savings from the Company's Financial Flexibility program. On a GAAP basis, operating income was $20.5 million, down $2.5 million or 11 percent. Non-Core Gains and Charges During the second quarter of 2005, the Company recorded net pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , non-core charges of $6.5 million related to both the 2005 and 2004 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. During the second quarter of 2004, the Company recorded a pre-tax, non-core charge of $8.0 million related to 2004 Financial Flexibility initiatives and a non-core impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.2 million to write down the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of the Company's Iberian business to its fair market value based on expected proceeds in connection with the anticipated sale of these operations. These charges were partially offset by a pre-tax, non-core gain of $5.6 million related to the sale of the Company's operations in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Austria Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. , Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. , Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, , Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. and the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. . 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. Acquisition of LiveCapital(R) The Company announced today that it has acquired LiveCapital, located in San Mateo, California San Mateo is a city in San Mateo County, California, in the San Francisco Bay Area. It is one of the larger suburbs on the San Francisco Peninsula, located between Burlingame to the north, Foster City to the East, and Belmont to the south. , for $16 million, funded with cash on hand. LiveCapital is a provider of online credit management software that enables users to manage the entire credit process within an enterprise-wide system. D&B expects the acquisition will be approximately $0.03 per share dilutive in 2005 and accretive in 2006. "LiveCapital's credit management software will complement our existing Risk Management capabilities, providing our customers with an enhanced credit management experience," said Alesio. "Our acquisition of LiveCapital is part of our ongoing effort to improve the way our customers access and leverage DUNSRight(TM) so they can make confident business decisions," concluded Alesio. Stock Option Expensing The Company has decided to delay the expensing of stock options until January January: see month. 2006 due to the uncertainty regarding the final implementation guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . The Company previously estimated that the expensing of stock options would have reduced earnings by $0.07 per share in the second half of 2005. 2005 Outlook The Company revised its 2005 EPS and operating income guidance primarily due to the two partially off-setting factors described above: the acquisition of LiveCapital and the deferral deferral - Waiting for quiet on the Ethernet. of stock option expensing, as well as the Company's plans to continue to invest during the second half of the year. The Company's 2005 guidance is now as follows: --Core revenue growth of 6 percent to 8 percent, before the effect of foreign exchange (no change); --Operating income growth before non-core gains and charges of 12 percent to 14 percent (compared with the previously announced range of 11 percent to 14 percent); --Diluted EPS of $3.43 to $3.51 before non-core gains and charges, representing 15 percent to 18 percent growth (compared with the previously announced range of $3.39 to $3.49 before non-core gains and charges, representing 14 percent to 17 percent growth); --Free cash flow of $265 million to $280 million before the impact of any payments made in connection with the Company's legacy tax matters (no change); and --Tax rate before non-core gains and charges of 36 percent to 37 percent (no change). 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 and core revenue growth before 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, and free cash flow. See "Item 1. Business - How We Evaluate our Performance" in the Company's Annual Report on Form 10-K for the period ending December 31, 2004, filed March 14, 2005 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 2005 Teleconference D&B will review its second quarter 2005 financial results in a conference call with the investment community on Thursday Thursday: see week. , July July: see month. 28, 2005, at 10 a.m. Eastern Time. 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), the leading provider of global business information, tools, and insight, has enabled customers to Decide with Confidence for over 160 years. D&B's proprietary DUNSRight (TM) quality process provides customers with quality information whenever and wherever they need it. This quality information is the foundation of D&B's solutions that customers rely on to make critical business decisions. Customers use D&B Risk Management Solutions to mitigate mit·i·gate v. To moderate in force or intensity. mit i·ga tion n. risk, increase cash flow and drive increased profitability;
D&B Sales & Marketing Solutions to increase revenue from new and
existing customers; D&B's 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 to convert
prospects into clients faster; and D&B Supply Management Solutions
to identify purchasing savings, manage risk and ensure compliance within
the supply base. 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 titled "2005 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, to a lesser extent, economic conditions which impact customer behavior. The Company's results are also dependent upon its ability to: --reallocate expenses to invest for growth through its Financial Flexibility program while maintaining employee satisfaction; --accurately forecast cost increases associated with increasing revenue growth; --manage increasing 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. , such as those of Sarbanes-Oxley; --invest in its database and maintain its reputation for providing reliable data; --execute on its plan to improve the business model of its International segment, which is also dependent upon the efforts of the Company's third-party partner organizations, and thereby improve its global data quality while realizing improved financial performance in that segment; --successfully implement 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. arrangements the Company entered into as part of its Financial Flexibility programs; --rely on its customers' belief in the value of the DUNSRight(TM) quality process as a key driver of revenue growth; --protect against damage or interruptions affecting its database or its data centers; and --develop new products or enhance existing ones to meet customer needs. In addition: --the Company's ability to 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. 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 the Company's stock, and the Company's ability to repurchase securities in accordance with applicable securities laws; --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 free cash flow in 2005 is dependent upon the Company's ability to generate revenue, the Company's collection processes, customer payment patterns and the amount and timing of payments related to proceedings involving the Company, as more fully described in the Company's filings with the SEC. See the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, "Note 7 - Contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. " for a more detailed description of these payment obligations; and --the Company's results, including operating income, are also subject to the effects of foreign economies, exchange rate fluctuations and U.S. and foreign legislative or regulatory requirements, 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. Developments in any of these areas could cause actual results to differ materially from those that have been or may be projected. 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 Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including the section titled "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. titled "Trends, Risks and Uncertainties" in the MD&A therein. 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.
The Dun & Bradstreet Corporation Schedule 1
Consolidated Statement of Operations (unaudited) - As Reported
-----------
Quarter Ended
June 30, Effects of
------------- AFX Foreign BFX
Amounts in millions, % Change Exchange % Change
except per share data 2005 2004 Fav/(Unfav)Fav/(Unfav)Fav/(Unfav)
--------------------- ------ ------ ---------- ---------- ----------
Revenue:
U.S. (1) $253.7 $236.1 7% 0% 7%
International (1) 98.0 85.0 15% 5% 10%
--------------------- ------ ------
Core Revenue 351.7 321.1 10% 2% 8%
Divested
Businesses (2) - 28.8 N/M N/M N/M
--------------------- ------ ------
Total Revenue $351.7 $349.9 1% 2% (1)%
--------------------- ------ ------ ---------- ----------
Operating Income
(Loss):
U.S. $ 82.3 $ 70.2 17%
International (3) 20.5 23.0 (11)%
Total Divisions 102.8 93.2 10%
Corporate and
Other (4) (26.6) (28.6) 7%
--------------------- ------ ------
Operating Income 76.2 64.6 18%
--------------------- ------ ------
Interest Income 3.1 1.8 77%
Interest Expense (5.0) (5.0) 0%
Minority Interest (0.4) - N/M
Other Income
(Expense) - Net (5) 3.4 4.6 (25)%
--------------------- ------ ------
Non-Operating Income
(Expense)- Net 1.1 1.4 (18)%
--------------------- ------ ------
Income before
Provision for Income
Taxes 77.3 66.0 17%
Provision for Income
Taxes 30.2 26.5 (14)%
Equity in Net Income
(Loss) of Affiliates - - N/M
--------------------- ------ ------
Net Income (6) $ 47.1 $ 39.5 19%
--------------------- ------ ------
Basic Earnings Per
Share of Common Stock $ 0.70 $ 0.56 25%
--------------------- ------ ------
Diluted Earnings Per
Share of Common
Stock (7) $ 0.67 $ 0.54 24%
--------------------- ------ ------
Weighted Average
Number of Shares
Outstanding:
Basic 67.7 70.8 4%
--------------------- ------ ------
Diluted 70.4 73.6 4%
--------------------- ------ ------ ----------
Year-to-Date
June 30, Effects of
------------- AFX Foreign BFX
Amounts in millions, % Change Exchange % Change
except per share data 2005 2004 Fav/(Unfav)Fav/(Unfav)Fav/(Unfav)
--------------------- ------ ------ ---------- ---------- ----------
Revenue:
U.S. (1) $516.9 $478.3 8% 0% 8%
International (1) 176.1 155.6 13% 5% 8%
--------------------- ------ ------
Core Revenue 693.0 633.9 9% 1% 8%
Divested
Businesses (2) - 59.4 N/M N/M N/M
--------------------- ------ ------
Total Revenue $693.0 $693.3 0% 2% (2)%
--------------------- ------ ------
Operating Income
(Loss):
U.S. $180.4 $155.5 16%
International (3) 22.4 32.3 (31)%
Total Divisions 202.8 187.8 8%
Corporate and
Other (4) (54.6) (57.7) 6%
--------------------- ------ ------
Operating Income 148.2 130.1 14%
--------------------- ------ ------
Interest Income 5.9 3.9 54%
Interest Expense (10.3) (9.6) (7)%
Minority Interest 0.3 - N/M
Other Income
(Expense) - Net (5) 3.2 17.1 (81)%
--------------------- ------ ------
Non-Operating Income (0.9) 11.4 N/M
(Expense)- Net
--------------------- ------ ------
Income before
Provision for Income
Taxes 147.3 141.5 4%
Provision for Income
Taxes 48.3 52.2 7%
Equity in Net Income
(Loss) of Affiliates 0.2 - N/M
--------------------- ------ ------
Net Income (6) $ 99.2 $ 89.3 11%
--------------------- ------ ------
Basic Earnings Per
Share of Common Stock $ 1.46 $ 1.25 17%
--------------------- ------ ------
Diluted Earnings Per
Share of Common
Stock (7) $ 1.40 $ 1.20 17%
--------------------- ------ ------
Weighted Average
Number of Shares
Outstanding:
Basic 67.9 71.3 5%
---------------------
Diluted 70.6 74.1 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.
This financial information should be read in conjunction with the
consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the Securities and
Exchange Commission.
The Dun & Bradstreet Corporation Schedule 2
Consolidated Statement of Operations (unaudited) - Before Non-Core
Gains and Charges
-----------------
Quarter Ended
June 30, Effects of
------------- AFX Foreign BFX
Amounts in millions, % Change Exchange % Change
except per share data 2005 2004 Fav/(Unfav)Fav/(Unfav)Fav/(Unfav)
--------------------- ------ ------ ---------- ---------- ----------
Revenue:
U.S. (1) $253.7 $236.1 7% 0% 7%
International (1) 98.0 85.0 15% 5% 10%
--------------------- ------ ------
Core Revenue 351.7 321.1 10% 2% 8%
Divested
Businesses (2) - 28.8 N/M N/M N/M
--------------------- ------ ------
Total Revenue $351.7 $349.9 1% 2% (1)%
--------------------- ------ ------ ---------- ----------
Operating
Income (Loss):
U.S. $ 82.3 $70.2 17%
International (3) 21.3 23.0 (8)%
------ ------
Total Divisions 103.6 93.2 11%
Corporate and
Other (4) (20.1) (20.6) 3%
--------------------- ------ ------
Operating Income 83.5 72.6 15%
--------------------- ------ ------
Interest Income 3.1 1.8 77%
Interest Expense (5.0) (5.0) 0%
Minority Interest (0.4) - N/M
Other Income
(Expense) - Net (5) 0.2 0.2 0%
--------------------- ------ ------
Non-Operating Income
(Expense) - Net (2.1) (3.0) 32%
--------------------- ------ ------
Income before
Provision for
Income Taxes 81.4 69.6 17%
Provision for
Income Taxes 30.0 24.6 (22)%
Equity in Net
Income (Loss)
of Affiliates - - N/M
--------------------- ------ ------
Net Income (6) $ 51.4 $ 45.0 14%
--------------------- ------ ------
Basic Earnings
Per Share of
Common Stock $ 0.76 $ 0.64 19%
--------------------- ------ ------
Diluted Earnings Per
Share of Common
Stock (7) $ 0.73 $ 0.61 20%
--------------------- ------ ------
Weighted Average
Number of Shares
Outstanding:
Basic 67.7 70.8 4%
--------------------- ------ ------
Diluted 70.4 73.6 4%
--------------------- ------ ------
Year-to-Date
June 30, Effects of
------------- AFX Foreign BFX
Amounts in millions, % Change Exchange % Change
except per share data 2005 2004 Fav/(Unfav)Fav/(Unfav)Fav/(Unfav)
--------------------- ------ ------ ---------- ---------- ----------
Revenue:
U.S. (1) $516.9 $478.3 8% 0% 8%
International (1) 176.1 155.6 13% 5% 8%
---------------------------- ------
Core Revenue 693.0 633.9 9% 1% 8%
Divested
Businesses (2) - 59.4 N/M N/M N/M
---------------------------- ------
Total Revenue $693.0 $693.3 0% 2% (2)%
---------------------------- ------ ---------- ----------
Operating Income
(Loss):
U.S. $180.4 $155.5 16%
International (3) 23.2 32.3 (29)%
------ ------
Total Divisions 203.6 187.8 8%
Corporate and
Other (4) (37.7) (39.5) 5%
---------------------------- ------
Operating Income 165.9 148.3 12%
---------------------------- ------
Interest Income 5.9 3.9 54%
Interest Expense (10.3) (9.6) (7)%
Minority Interest 0.3 - N/M
Other Income
(Expense) - Net (5) - 1.0 N/M
---------------------------- ------
Non-Operating Income
(Expense) - Net (4.1) (4.7) 12%
---------------------------- ------
Income before
Provision for
Income Taxes 161.8 143.6 13%
Provision for
Income Taxes 60.4 53.5 (13)%
Equity in Net Income
(Loss) of Affiliates 0.2 - N/M
---------------------------- ------
Net Income (6) $101.6 $ 90.1 13%
---------------------------- ------
Basic Earnings Per
Share of Common
Stock $ 1.50 $ 1.26 19%
---------------------------- ------
Diluted Earnings Per
Share of Common
Stock (7) $ 1.44 $ 1.21 19%
---------------------------- ------
Weighted Average
Number of Shares
Outstanding:
Basic 67.9 71.3 5%
---------------------------- ------
Diluted 70.6 74.1 5%
---------------------------- ------ ----------
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful
See Schedule 3 (Notes to Schedules) for a definition of Non-GAAP
measures and a reconciliation of non-core gains and charges.
This financial information should be read in conjunction with the
consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the Securities and
Exchange Commission.
The Dun & Bradstreet Corporation Schedule 3
Notes to Schedules 1 and 2 (unaudited) and Definitions of Non-GAAP
Measures
(1) On January 1, 2005, we began managing our business in Canada in
the International segment and have conformed historical amounts to
reflect the new segment structure.
(2) 2004 includes revenues from the Company's operations in France,
Iberia (Spain and Portugal), Nordic (Sweden, Denmark, Norway and
Finland), Germany, Austria, Switzerland, Poland, Hungary, the Czech
Republic, India and Distribution Channels in Pakistan and the Middle
East.
(3) The following table reconciles International Operating Income
included in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, June 30,
------------- ------------ % Change
% Change Fav/
Amounts in millions 2005 2004 Fav/(Unfav)2005 2004 (Unfav)
----------------------- ------ ------ ---------- ----- ------ --------
International Operating
Income - As Reported
(Schedule 1) $ 20.5 $ 23.0 (11)% $22.4 $ 32.3 (31%)
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) $ 21.3 $ 23.0 (8)% $23.2 $ 32.3 (29%)
------ ------ ---------- ----- ------ --------
(4) The following table reconciles Corporate and Other expenses
included in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, June 30,
------------- ------------- % Change
% Change Fav/
Amounts in millions 2005 2004 Fav/(Unfav)2005 2004 (Unfav)
--------------------- ------ ------ ---------- ------ ------ ---------
Corporate and Other -
As Reported
(Schedule 1) $(26.6)$(28.6) 7% $(54.6)$(57.7) 6%
Restructuring Charge (6.5) (8.0) 18% (16.9) (18.2) 7%
------ ------ ------ ------
Corporate and Other -
Before Non-Core Gains
and Charges
(Schedule 2) $(20.1)$(20.6) 3% $(37.7)$(39.5) 5%
------ ------ ---------- ------ ------ ---------
(5) The following table reconciles Other Income (Expense) - Net
included in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, June 30,
------------- -------------
% Change % Change
Amounts in millions 2005 2004 Fav/(Unfav) 2005 2004 Fav/(Unfav)
------------------- ------ ------ ---------- ------ ------ ----------
Other Income
(Expense) - Net -
As Reported
(Schedule 1) $ 3.4 $ 4.6 (25)% $ 3.2 $ 17.1 (81%)
Gain on Sale of a
5% Investment in a
South African
company 3.5 - N/M 3.5 - N/M
Impairment Charge
on the write-down
on net assets in
Iberia (Spain and
Portugal) to their
fair market value - (1.2) N/M - (1.2)N/M
Lower costs related
to the sale of
Iberia (Spain and
Portugal) 0.8 - N/M 0.8 - N/M
Gain on Sales of
Operations in
Nordic (Sweden,
Denmark, Norway
and Finland) - - N/M - 7.9 N/M
Gain on Sales of
Operations in
India and
Distribution
Channels in
Pakistan and the
Middle East - - N/M - 3.8 N/M
Gain on Sales of
Operations in
Central Europe
(Germany, Austria,
Switzerland,
Poland, Hungary
and Czech
Republic) - 5.6 N/M - 5.6 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) $ 0.2 $ 0.2 0% $ - $ 1.0 N/M
------ ------ ---------- ------ ------ ----------
(6) The following table reconciles Net Income included in Schedule 1
and Schedule 2:
Quarter Ended Year-to-Date
June 30, June 30,
------------- -------------
% Change % Change
Amounts in millions 2005 2004 Fav/(Unfav) 2005 2004 Fav/(Unfav)
------------------- ------ ------ ----------------- ------ ----------
Net Income -
As Reported
(Schedule 1) $ 47.1 $ 39.5 19% $ 99.2 $ 89.3 11%
Restructuring
Charge (5.9) (5.2) N/M (13.0) (12.0) N/M
Gain on Sale of a
5% Investment in
a South African
company 2.0 - N/M 2.0 - N/M
Impairment Charge
on the write-down
on net assets in
Iberia (Spain and
Portugal) to their
fair market value - (3.2) N/M - (3.2) N/M
Lower costs related
to the sale of
Iberia (Spain and
Portugal) 0.8 - N/M 0.8 - N/M
Gain on Sales of
Operations in
Central Europe
(Germany, Austria,
Switzerland,
Poland, Hungary
and Czech
Republic) - 2.9 N/M - 2.9 N/M
Charge related to a
dispute on the
sale of the
Company's French
business (1.2) - N/M (1.2) - N/M
Gain on Sales of
Operations in
Nordic (Sweden,
Denmark, Norway
and Finland) - - N/M - 9.6 N/M
Gain on Sales of
Operations in
India and
Distribution
Channels in
Pakistan and the
Middle East - - N/M - 1.9 N/M
Tax Benefits
Recognized Upon
the Liquidation
of Dormant
International
Corporations - - N/M 9.0 - N/M
------ ------ ------ ------
Net Income - Before
Non-Core Gains and
Charges
(Schedule 2) $ 51.4 $ 45.0 14% $101.6 $ 90.1 13%
------ ------ ---------- ------ ------ ----------
(7) The following table reconciles Diluted Earnings Per Share included
in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, June 30,
------------- -------------
% Change % Change
2005 2004 Fav/(Unfav) 2005 2004 Fav/(Unfav)
------------------- ------ ------ ---------- ------ ------ ----------
Diluted EPS - As
Reported
(Schedule 1) $ 0.67 $ 0.54 24% $ 1.40 $ 1.20 17%
Restructuring
Charge (0.08) (0.07) N/M (0.19) (0.16) N/M
Gain on Sale of a
5% Investment in a
South African
company 0.03 - N/M 0.03 - N/M
Impairment Charge
on the write-down
on net assets in
Iberia (Spain
and Portugal) to
their fair market
value - (0.04) N/M - (0.04) N/M
Lower costs related
to the sale of
Iberia (Spain and
Portugal) 0.01 - N/M 0.01 - N/M
Gain on Sales of
Operations in
Central Europe
(Germany, Austria,
Switzerland,
Poland, Hungary
and Czech
Republic) - 0.04 N/M - 0.04 N/M
Charge related to a
dispute on the
sale of the
Company's French
business (0.02) - N/M (0.02) - N/M
Gain on Sales of
Operations in Nordic
(Sweden, Denmark,
Norway and Finland) - - N/M - 0.13 N/M
Gain on Sales of
Operations in India
and Distribution
Channels in
Pakistan and the
Middle East - - N/M - 0.02 N/M
Tax Benefits
Recognized Upon
the Liquidation of
Dormant
International
Corporations - - N/M 0.13 - N/M
------ ------ ------ ------
Diluted EPS -
Before Non-Core
Gains and Charges
(Schedule 2) $ 0.73 $ 0.61 20% $ 1.44 $ 1.21 19%
------ ------ ---------- ------ ------ ----------
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"
Results (such as operating income, operating income growth, operating
margin, net income, tax rate and diluted earnings per share) exclude
Restructuring charges (whether recurring or non-recurring) and certain
other items that we consider do not reflect our underlying business
performance. We refer to these restructuring charges and other items
as "non-core gains and (charges)"
Net cash provided by operating activities minus capital expenditures
and additions to computer software and other intangibles is referred
to as "free cash flow"
This financial information should be read in conjunction with the
consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the Securities and
Exchange Commission.
The Dun & Bradstreet Corporation Schedule 4
Supplemental Financial Data (unaudited)
Quarter Ended
June 30, Effects of
------------- AFX Foreign BFX
% Change Exchange % Change
Amounts in millions 2005 2004 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
------------------- ------ ------ ---------- ---------- ----------
Geographic and
Customer Solution
Set Revenue:
U.S.:
Risk Management
Solutions $165.3 $155.1 7% 0% 7%
Sales & Marketing
Solutions 66.8 62.7 7% 0% 7%
E-Business
Solutions 16.1 12.0 34% 0% 34%
Supply Management
Solutions 5.5 6.3 (12%) 0% (12%)
------ ------
Core Revenue 253.7 236.1 7% 0% 7%
Divested Businesses - - N/M N/M N/M
------ ------
Total U.S. 253.7 236.1 7% 0% 7%
------ ------
International:
Risk Management
Solutions 82.7 70.6 17% 5% 12%
Sales & Marketing
Solutions 13.6 13.2 3% 4% (1%)
E-Business
Solutions 0.6 - N/M N/M N/M
Supply Management
Solutions 1.1 1.2 (8%) 5% (13%)
------ ------
Core Revenue 98.0 85.0 15% 5% 10%
Divested Businesses - 28.8 N/M N/M N/M
------ ------
Total
International 98.0 113.8 (14%) 4% (18%)
------ ------
Total Corporation:
Risk Management
Solutions 248.0 225.7 10% 2% 8%
Sales & Marketing
Solutions 80.4 75.9 6% 1% 5%
E-Business
Solutions 16.7 12.0 39% 0% 39%
Supply Management
Solutions 6.6 7.5 (11%) 1% (12%)
------ -------
Core Revenue 351.7 321.1 10% 2% 8%
Divested Businesses - 28.8 N/M N/M N/M
------ -------
Total Revenue $351.7 $349.9 1% 2% (1)%
------ ------- ---------- ----------
Operating Costs:
Operating Expenses $107.0 $105.3 (2%)
Selling and
Administrative
Expenses 153.2 160.8 5%
Depreciation and
Amortization 8.8 11.2 21%
Restructuring
Expense 6.5 8.0 18%
------ -------
Total Operating
Costs $275.5 $285.3 3%
------ -------
Capital
Expenditures $ 1.4 $ 2.7 48%
------ -------
Additions to
Computer Software
& Other
Intangibles $ 3.6 $ 2.3 (57%)
------ ------ ----------
Year-to-Date
June 30, Effects of
------------- AFX Foreign BFX
% Change Exchange % Change
Amounts in millions 2005 2004 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
------------------- ------ ------ ---------- ---------- ----------
Geographic and
Customer Solution
Set Revenue:
U.S.:
Risk Management
Solutions $330.0 $309.9 6% 0% 6%
Sales & Marketing
Solutions 144.2 133.5 8% 0% 8%
E-Business
Solutions 31.3 23.1 36% 0% 36%
Supply Management
Solutions 11.4 11.8 (3%) 0% (3)%
------ ------
Core Revenue 516.9 478.3 8% 0% 8%
Divested
Businesses - - N/M N/M N/M
------ ------
Total U.S. 516.9 478.3 8% 0% 8%
------ ------
International:
Risk Management
Solutions 150.1 128.6 17% 6% 11%
Sales & Marketing
Solutions 22.9 25.1 (9%) 3% (12)%
E-Business
Solutions 1.0 - N/M N/M N/M
Supply Management
Solutions 2.1 1.9 12% 6% 6%
------ ------
Core Revenue 176.1 155.6 13% 5% 8%
Divested
Businesses - 59.4 N/M N/M N/M
------ ------
Total
International 176.1 215.0 (18%) 5% (23)%
------ ------
Total Corporation:
Risk Management
Solutions 480.1 438.5 10% 2% 8%
Sales & Marketing
Solutions 167.1 158.6 5% 0% 5%
E-Business
Solutions 32.3 23.1 40% 0% 40%
Supply Management
Solutions 13.5 13.7 (1%) 1% (2)%
------ ------
Core Revenue 693.0 633.9 9% 1% 8%
Divested
Businesses - 59.4 N/M N/M N/M
------ ------
Total Revenue $693.0 $693.3 0% 2% (2)%
------ ------ ---------- ----------
Operating Costs:
Operating
Expenses $202.1 $208.5 3%
Selling and
Administrative
Expenses 308.4 313.3 2%
Depreciation and
Amortization 17.4 23.2 25%
Restructuring
Expense 16.9 18.2 7%
------ ------
Total Operating
Costs $544.8 $563.2 3%
------ ------
Capital
Expenditures $ 4.5 $ 5.9 24%
------ ------
Additions to
Computer Software
& Other
Intangibles $ 5.1 $ 4.0 (28%)
------ ------ ----------
Amounts in millions Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31
2005 2005 2004 2004 2004 2004
------------------- ------- ------- ------- ------- ------- --------
Net Debt Position:
Cash and Cash
Equivalents (6) $ 245.3 $ 295.4 $ 252.9 $ 193.8 $ 217.2 $ 197.4
Notes Payable - - - - - -
Short-Term Debt (303.3) (301.7) (1.0) - - -
Long-Term Debt (0.4) - (300.0) (299.9) (299.9) (299.9)
------- ------- ------- ------- ------- --------
Net Debt $ (58.4)$ (6.3)$ (48.1)$(106.1)$ (82.7) $ 102.5
------- ------- ------- ------- ------- --------
(6) In addition to
Cash and Cash
Equiv. we had the
following net
(investments)
redemptions in
Marketable
Securities $ (34.8)$ 48.2 $ 6.0 $ 7.9 $ 3.0 $ (87.7)
------- ------- ------- ------- ------- --------
Year-To-Date
------------------------------------
% Change
Amounts in millions Jun 30, 2005 Jun 30, 2004 Fav/(Unfav)
------------------- ------------ ------------ ----------
Free Cash Flow:
Net Cash Provided By
Operating Activities (As
Reported) $ 121.4 $ 127.7 (5)%
Less:
Capital
Expenditures (As
Reported) 4.5 5.9 24%
Additions to Computer
Software & Other
Intangibles (As
Reported) 5.1 4.0 (28)%
------------ ------------
Free Cash Flow 111.8 117.8 (5)%
Add: Legacy Tax
Payment 15.8 N/M N/M
------------ ------------ ----------
Free Cash Flow excluding
the effect of the Legacy
Tax Payment $ 127.6 $ 117.8 8%
------------ ------------ ----------
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful
This financial information should be read in conjunction with the
consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the Securities and
Exchange Commission.
The Dun & Bradstreet Corporation Schedule 5
Revenue Reconciliation and Detail Quarter Ended June 30, 2005
Quarter Ended June 30, 2005 vs. 2004
---------------------------------------------------
Traditional/VAPs as
a % of Total
Customer
Solution Sets/Core
--------------------
AFX Effects BFX 2005 2004
% Change Foreign % Change % Product % Product
Amounts in Fav/(Unfav)Exchange Fav/(Unfav)Line/Core Line/Core
millions
----------------- ---------- -------- ---------- --------- ---------
Revenue:
--------
U.S.:
Risk Management
Solutions:
Traditional 5% 0% 5% 77% 50% 78% 51%
VAPs 12% 0% 12% 23% 15% 22% 15%
Total Risk
Management
Solutions 7% 0% 7% 65% 66%
Sales &
Marketing
Solutions:
Traditional 6% 0% 6% 47% 12% 47% 12%
VAPs 7% 0% 7% 53% 14% 53% 14%
Total Sales &
Marketing
Solutions 7% 0% 7% 26% 26%
E-Business
Solutions 34% 0% 34% 7% 5%
Supply Management
Solutions -12% 0% -12% 2% 3%
Core Revenue 7% 0% 7%
Divested
Businesses N/M N/M N/M
Total U.S. 7% 0% 7%
International:
Risk Management
Solutions:
Traditional 17% 5% 12% 90% 76% 90% 75%
VAPs 15% 6% 9% 10% 8% 10% 8%
Total Risk
Management
Solutions 17% 5% 12% 84% 83%
Sales & Marketing
Solutions:
Traditional -22% 3% -25% 52% 7% 69% 11%
VAPs 60% 6% 54% 48% 7% 31% 5%
Total Sales &
Marketing
Solutions 3% 4% -1% 14% 16%
E-Business
Solutions N/M N/M N/M 1% 0%
Supply Management
Solutions -8% 5% -13% 1% 1%
Core Revenue 15% 5% 10%
Divested
Businesses N/M N/M N/M
Total
International -14% 4% -18%
Total Corporation:
Risk Management
Solutions:
Traditional 9% 2% 7% 81% 57% 82% 57%
VAPs 13% 1% 12% 19% 13% 18% 13%
Total Risk
Management
Solutions 10% 2% 8% 70% 70%
Sales & Marketing
Solutions:
Traditional 0% 2% -2% 48% 11% 51% 12%
VAPs 13% 1% 12% 52% 12% 49% 12%
Total Sales &
Marketing
Solutions 6% 1% 5% 23% 24%
E-Business
Solutions 39% 0% 39% 5% 4%
Supply Management
Solutions -11% 1% -12% 2% 2%
Core Revenue 10% 2% 8%
Divested
Businesses N/M N/M N/M
Total Corporation 1% 2% -1%
---------- -------- ---------- --------- ---------
Year-to-Date Ended June 30, 2005 vs. 2004
---------------------------------------------------
Traditional/VAPs as
a % of Total
Customer
Solution Sets/Core
--------------------
AFX Effects BFX 2005 2004
% Change Foreign % Change % Product % Product
Amounts in Fav/(Unfav)Exchange Fav/(Unfav)Line/Core Line/Core
millions
----------------- ---------- -------- ---------- --------- ---------
Revenue:
-----------------
U.S.:
Risk Management
Solutions:
Traditional 5% 0% 5% 78% 50% 79% 51%
VAPs 12% 0% 12% 22% 14% 21% 14%
Total Risk
Management
Solutions 6% 0% 6% 64% 65%
Sales &
Marketing
Solutions:
Traditional 10% 0% 10% 47% 13% 46% 13%
VAPs 6% 0% 6% 53% 15% 54% 15%
Total Sales &
Marketing
Solutions 8% 0% 8% 28% 28%
E-Business
Solutions 36% 0% 36% 6% 5%
Supply
Management
Solutions -3% 0% -3% 2% 2%
Core Revenue 8% 0% 8%
Divested
Businesses N/M N/M N/M
Total U.S. 8% 0% 8%
International:
Risk Management
Solutions:
Traditional 17% 6% 11% 91% 77% 90% 75%
VAPs 13% 6% 7% 9% 8% 10% 8%
Total Risk
Management
Solutions 17% 6% 11% 85% 83%
Sales &
Marketing
Solutions:
Traditional -30% 3% -33% 52% 7% 69% 11%
VAPs 39% 5% 34% 48% 6% 31% 5%
Total Sales &
Marketing
Solutions -9% 3% -12% 13% 16%
E-Business
Solutions N/M N/M N/M 1% 0%
Supply
Management
Solutions 12% 6% 6% 1% 1%
Core Revenue 13% 5% 8%
Divested
Businesses N/M N/M N/M
Total
International -18% 5% -23%
Total
Corporation:
Risk Management
Solutions:
Traditional 9% 2% 7% 82% 57% 82% 57%
VAPs 12% 1% 11% 18% 12% 18% 12%
Total Risk
Management
Solutions 10% 2% 8% 69% 69%
Sales &
Marketing
Solutions:
Traditional 1% 1% 0% 47% 11% 49% 12%
VAPs 10% 1% 9% 53% 13% 51% 13%
Total Sales &
Marketing
Solutions 5% 0% 5% 24% 25%
E-Business
Solutions 40% 0% 40% 5% 4%
Supply
Management
Solutions -1% 1% -2% 2% 2%
Core Revenue 9% 1% 8%
Divested
Businesses N/M N/M N/M
Total Corporation 0% 2% -2%
---------- ------- ---------- ---------- ----------
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 Schedule 6
Effect of Divestitures on International Results (unaudited)
2005 Row#
---------------------------
Amounts in Millions Q1 Q2 YTD
--------------------------------- -------- -------- ---------
International:
Total Revenue as Reported $ 78.1 $ 98.0 $ 176.1 1
Less Divested Businesses:
Israel (August 2003) 2
Nordic (December 2003) 3
India (February 2004) 4
Central Europe (April 2004) 5
France (October 2004) 6
Iberia (October 2004) 7
-------- -------- ---------
Divested Businesses (1) - - - 8
-------- -------- ---------
Core Revenue as Reported in 2004 N/A N/A N/A 9
Add Canada N/A N/A N/A 10
-------- -------- ---------
Core Revenue with Canada AFX (1) $ 78.1 $ 98.0 $ 176.1 11
--------------------------------- -------- -------- ---------
2004 Row#
------------------------------- ----
Full
Amounts in Millions Q1 Q2 Q3 Q4 Year
------------------------------ ----- ------ ----- ----- ------
International:
Total Revenue as Reported $92.9 $104.5 $85.4 $92.9 $375.7 1
Less Divested Businesses:
Israel (August 2003) 2
Nordic (December 2003) 3
India (February 2004) 1.1 1.1 4
Central Europe (April 2004) 12.9 10.7 23.6 5
France (October 2004) 9.8 10.8 8.9 3.4 32.9 6
Iberia (October 2004) 6.8 7.3 5.4 2.4 21.9 7
----- ------ ----- ----- ------
Divested Businesses (1) 30.6 28.8 14.3 5.8 79.5 8
----- ------ ----- ----- ------
Core Revenue as Reported in
2004 62.3 75.7 71.1 87.1 296.2 9
Add Canada 8.3 9.3 7.6 8.2 33.4 10
----- ------ ----- ----- ------
Core Revenue with Canada
AFX (1) $70.6 $ 85.0 $78.7 $95.3 $329.6 11
------------------------------ ----- ------ ----- ----- ------
(1) Total Revenue, Divested Business Revenue and Core Revenue for the
International segment can be found on Schedule 4.
This financial information should be read in conjunction with the
consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the Securities and
Exchange Commission.
The Dun & Bradstreet Corporation Schedule 7
Effect of Segment Change - Canada from North America to International
(unaudited)
Row
2004 #
------------------------------------------ ---
Amounts in Millions Q1 Q2 Q3 Q4 Full Year
------------------- ------- ------- ------- ------- ----------
North America Core
Revenue as
Reported in 2004 $ 250.5 $ 245.4 $ 247.8 $ 294.6 $ 1,038.3 1
Less Canada 8.3 9.3 7.6 8.2 33.4 2
------- ------- ------- ------- ----------
U.S. Core Revenue $ 242.2 $ 236.1 $ 240.2 $ 286.4 $ 1,004.9 3
------------------- ------- ------- ------- ------- ----------
2004
------------------------------------------
Amounts in Millions Q1 Q2 Q3 Q4 Full Year
------------------- ------- ------- ------- ------- ----------
International Core
Revenue as Reported
in 2004 $ 62.3 $ 75.7 $ 71.1 $ 87.1 $ 296.2 4
Add Canada 8.3 9.3 7.6 8.2 33.4 5
------- ------- ------- ------- ----------
International Core
Revenue with
Canada $ 70.6 $ 85.0 $ 78.7 $ 95.3 $ 329.6 6
--------------------------- ------- ------- ------- ----------
2004
------------------------------------------
Amounts in Millions Q1 Q2 Q3 Q4 Full Year
------------------- ------- ------- ------- ------- ----------
North America
Operating Income
as Reported in
2004 $ 87.5 $ 73.0 $ 82.4 $ 122.4 $ 365.3 7
Less Canada 2.2 2.8 1.4 4.0 10.4 8
------- ------- ------- ------- ----------
U.S. Operating
Income $ 85.3 $ 70.2 $ 81.0 $ 118.4 $ 354.9 9
------------------- ------- ------- ------- ------- ----------
2004
------------------------------------------
Amounts in Millions Q1 Q2 Q3 Q4 Full Year
------------------- ------- ------- ------- ------- ----------
International
Operating Income
as Reported in
2004 $ 7.1 $ 20.2 $ 12.1 $ 24.9 $ 64.3 10
Add Canada 2.2 2.8 1.4 4.0 10.4 11
------- ------- ------- ------- ----------
International
Operating Income
with Canada $ 9.3 $ 23.0 $ 13.5 $ 28.9 $ 74.7 12
--------------------------- ------- ------- ------- ----------
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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