D&B Logo 600x200D&B reported Q1 2015 revenues of US$376.2 up 1% before FX (Down 1% after FX).  Reaffirms Underlying Guidance.  Provides Guidance for Impact of Pending Acquisition of Dun & Bradstreet Credibility Corporation

  • As Adjusted and GAAP revenue up 1% year over year, before the effect of foreign exchange (US$ 376.2 down 1% after the effect of foreign exchange);
  • As Adjusted operating income of $77.8 million, down 11% year over year due to the timing of investment spending; GAAP operating income of $66.2 million, down 20%;
  • As Adjusted diluted earnings per share were $1.33, down 14% from $1.55 in the first quarter 2014; GAAP diluted earnings per share were $1.13, down from $2.26 in the first quarter 2014; and
  • Free cash flow for the first three months of 2015 was $144.8 million, compared to $148.5 million for the first three months of 2014; net cash Page 2 of 6 provided by operating activities for the first three months of 2015 was $158.8 million, compared to $160.5 million for the first three months of 2014

2015 Q1 D&B Quarterly SummaryFirst Quarter 2015 Segment Results Americas

  • As Adjusted revenue of $281.5 million, flat year over year both before and after the effect of foreign exchange; GAAP revenue of $280.9 million, flat year over year both before and after the effect of foreign exchange
  • As Adjusted operating income was $71.0 million, down 11% year over year, as expected due to the timing of investments. On a GAAP basis, operating income was $67.9 million, down 15% year over year.

First Quarter Segment Results: Non-Americas

  • As Adjusted and GAAP revenue were $95.3 million, up 3% year over year before the effect of foreign exchange (down 5% after the effect of the foreign exchange)
  • As Adjusted and GAAP operating income of $23.0 million, up 9% year over year.

Full Year 2015 Guidance Dun & Bradstreet today reaffirmed its underlying financial guidance, before taking into account the acquisition of Dun & Bradstreet Credibility Corp., for the full year 2015: ·

  • As Adjusted revenue growth 2% to 5%, before the effect of foreign exchange; As Adjusted operating income of (2%) to 2%;
  • As Adjusted diluted EPS of (3%) to 1%; and
  • Free cash flow of $255 million to $285 million, which excludes the impact of legacy tax matters and any potential regulatory fines associated with our China operations. As a result of the announced agreement to acquire Dun & Bradstreet Credibility Corp., assuming the acquisition closes as expected during May of 2015, our updated financial guidance for the full year 2015 would be:
  • As Adjusted revenue growth 6% to 9%, before the effect of foreign exchange;
  • As Adjusted operating income of flat to 4%;
  • As Adjusted diluted EPS of (3%) to 1%; and Free cash flow of $255 million to $285 million, which excludes the impact of legacy tax matters and any potential regulatory fines associated with our China operations.

“I’m pleased with the progress we are making as we execute our strategy and I feel good about performance in the first quarter. Operating income and EPS came in as expected reflecting the impact of the strategic investments made in the second half of 2014.  Revenue was slightly below our expectations due to the timing of a large contract that we expect to make up later in the year, and we are on track to deliver our 2015 guidance,” said Bob Carrigan, President & CEO of Dun & Bradstreet. “We are gaining momentum in many areas of the strategy, and believe the recently announced plan to acquire Dun & Bradstreet Credibility Corp. will accelerate our small business turnaround and get us on track for sustainable growth faster.”

Source:  D&B Earnings Release