Dun & Bradstreet Holdings, Inc. (NYSE: DNB), a leading
global provider of business decisioning data and analytics, today
announced unaudited financial results for the third quarter ended
September 30, 2022. A reconciliation of U.S. generally accepted
accounting principles (“GAAP”) to non-GAAP financial measures has
been provided in this press release, including the accompanying
tables. An explanation of these measures is also included below
under the heading “Use of Non-GAAP Financial Measures.”
- GAAP Revenue and Adjusted Revenue for the third quarter of 2022
were both $556.3 million. GAAP Revenue and Adjusted Revenue
increased 2.7% and 6.6% on a constant currency basis compared to
the third quarter of 2021.
- Excluding the impact of acquisitions and divestitures, organic
revenue was $562.9 million, an increase of 3.9% on a constant
currency basis compared to the third quarter of 2021.
- GAAP net income for the third quarter of 2022 was $8.0 million,
or $0.02 diluted earnings per share, compared to net income of
$16.6 million or diluted earnings per share of $0.04 for the prior
year quarter. Adjusted net income was $123.4 million and adjusted
diluted earnings per share was $0.29 for both the third quarter of
2022 and the prior year quarter.
- Adjusted EBITDA for the third quarter of 2022 was $223.0
million, an increase of 1.2% compared to the third quarter of 2021,
and adjusted EBITDA margin for the third quarter of 2022 was
40.1%.
“We are pleased to deliver another solid quarter of financial
and operational execution at Dun & Bradstreet. Organic constant
currency revenue growth of 3.9% during the third quarter was driven
by balanced performance across both our North America and
International business segments,” said Anthony Jabbour, Dun &
Bradstreet Chief Executive Officer. “Our results demonstrate the
strength and resilience of our business fundamentals, as we
continue to achieve defensible growth despite a challenging macro
environment. Overall, I am very pleased with the way we have
executed year to date and I believe Dun & Bradstreet is well
positioned in the market due to our combination of high quality
revenues, increasing innovation, strong margins, solid balance
sheet and disciplined capital allocation.”
- GAAP Revenue and Adjusted Revenue for the nine months ended
September 30, 2022 were both $1,629.6 million. GAAP Revenue
increased 4.0% and 6.9% on a constant currency basis compared to
the nine months ended September 30, 2021. Adjusted Revenue
increased 3.7% and 6.6% on a constant currency basis compared to
the nine months ended September 30, 2021.
- Excluding the impact of acquisitions and divestitures, organic
revenue was $1,628.4 million, an increase of 4.0% on a constant
currency basis compared to the nine months ended September 30,
2021.
- GAAP net loss for the nine months ended September 30, 2022 was
$25.1 million, or diluted loss per share of $0.06, compared to net
loss of $60.1 million or diluted loss per share of $0.14 for the
prior year period. Adjusted net income was $333.2 million, or
adjusted diluted earnings per share of $0.78, compared to adjusted
net income of $329.2 million, or adjusted diluted earnings per
share of $0.77 for the prior year period.
- Adjusted EBITDA for the nine months ended September 30, 2022
was $613.1 million, an increase of 1.4% compared to the nine months
ended September 30, 2021, and adjusted EBITDA margin for the nine
months ended September 30, 2022 was 37.6%.
Segment Results
North America
For the third quarter of 2022, North America revenue was $403.6
million, an increase of $29.5 million or 7.9% and 8.0% on a
constant currency basis compared to the third quarter of 2021.
Excluding the impact of acquisitions which contributed revenue of
$15.8 million and the negative impact of foreign exchange of $0.4
million, North America organic revenue increased 3.8%.
- Finance and Risk revenue for the third quarter of 2022 was
$224.1 million, an increase of $10.1 million or 4.7% and 4.8% on a
constant currency basis compared to the third quarter of 2021.
- Sales and Marketing revenue for the third quarter of 2022 was
$179.5 million, an increase of $19.4 million or 12.1% and 12.2% on
a constant currency basis compared to the third quarter of
2021.
North America adjusted EBITDA for the third quarter of 2022 was
$188.4 million, an increase of 1.5%, with adjusted EBITDA margin of
46.7%.
For the nine months ended September 30, 2022, North America
revenue was $1,152.2 million, an increase of $81.5 million or 7.6%
and 7.7% on a constant currency basis compared to the nine months
ended September 30, 2021. Excluding the impact of acquisitions
which contributed revenue of $43.4 million and the negative impact
of foreign exchange of $0.8 million, North America organic revenue
increased 3.6%.
- Finance and Risk revenue for the nine months ended September
30, 2022 was $635.8 million, an increase of $31.6 million or 5.2%
and 5.3% on a constant currency basis compared to the nine months
ended September 30, 2021.
- Sales and Marketing revenue for the nine months ended September
30, 2022 was $516.4 million, an increase of $49.9 million or 10.7%
and 10.8% on a constant currency basis compared to the nine months
ended September 30, 2021.
North America adjusted EBITDA for the nine months ended
September 30, 2022 was $503.1 million, a decrease of 0.2%, with
adjusted EBITDA margin of 43.7%.
International
International revenue for the third quarter of 2022 was $152.7
million, a decrease of $15.1 million or 9.0% and an increase of
3.5% on a constant currency basis compared to the third quarter of
2021. Excluding the negative impact of foreign exchange of $20.9
million and the impact of divestitures, organic revenue on a
constant currency basis increased 4.3%.
- Finance and Risk revenue for the third quarter of 2022 was
$102.2 million, a decrease of $6.5 million or 6.0% and an increase
of 5.6% on a constant currency basis compared to the third quarter
of 2021.
- Sales and Marketing revenue for the third quarter of 2022 was
$50.5 million, a decrease of $8.6 million or 14.4% and a decrease
of 0.5% on a constant currency basis compared to the third quarter
of 2021.
International adjusted EBITDA for the third quarter of 2022 was
$51.6 million, a decrease of 4.4%, with adjusted EBITDA margin of
33.8%.
International revenue for the nine months ended September 30,
2022 was $477.4 million, a decrease of $24.0 million or 4.8% and an
increase of 4.2% on a constant currency basis compared to the nine
months ended September 30, 2021. Excluding the negative impact of
foreign exchange of $45.1 million and the impact of divestitures,
organic revenue on a constant currency basis increased 4.8%.
- Finance and Risk revenue for the nine months ended September
30, 2022 was $313.1 million, a decrease of $7.0 million or 2.2% and
an increase of 6.0% on a constant currency basis compared to the
nine months ended September 30, 2021.
- Sales and Marketing revenue for the nine months ended September
30, 2022 was $164.3 million, a decrease of $17.0 million or 9.3%
and an increase of 1.0% on a constant currency basis compared to
the nine months ended September 30, 2021.
International adjusted EBITDA for the nine months ended
September 30, 2022 was $153.2 million, an increase of 3.4%, with
adjusted EBITDA margin of 32.1%.
Balance Sheet
As of September 30, 2022, we had cash and cash equivalents of
$203.9 million and total principal amount of debt of $3,650.7
million. We had $803.8 million available on our $850 million
revolving credit facility as of September 30, 2022.
Business Outlook
- Adjusted Revenues before the impact of foreign exchange are
expected to be in the range of 5.5% to 6.5%.
- Adjusted Revenues after the impact of foreign exchange are
expected to be in the range of $2,215 million to $2,235 million, or
2.1% to 3.0%.
- This update reflects a 3.4% headwind to revenue after the
effect of foreign currency due primarily to the continued
strengthening of the U.S. dollar vs. the Euro, Swedish Krona and in
particular the British Pound in the second half of this year.
- Adjusted EBITDA is expected to be in the narrowed range of $865
million to $885 million, taking into account the continued
strengthening of the U.S. dollar.
- Adjusted EPS is expected to be in the range of $1.10 to
$1.14.
The foregoing forward-looking statements reflect Dun &
Bradstreet’s expectations as of today's date and Revenue assumes
constant foreign currency rates. Dun & Bradstreet does not
present a qualitative reconciliation of its forward-looking
non-GAAP financial measures to the most directly comparable GAAP
measure due to the inherent difficulty, without unreasonable
efforts, in forecasting and quantifying with reasonable accuracy
significant items required for this reconciliation. Given the
number of risk factors, uncertainties and assumptions discussed
below, actual results may differ materially. Dun & Bradstreet
does not intend to update its forward-looking statements until its
next quarterly results announcement, other than in publicly
available statements.
Earnings Conference Call and Audio Webcast
Dun & Bradstreet will host a conference call to discuss the
third quarter 2022 financial results on November 3, 2022 at 8:30am
ET. The conference call can be accessed live over the phone by
dialing 1-800-754-1382 (USA), or 1-303-223-0120 (International).
The conference call replay will be available from 11:30am ET on
November 3, 2022, through November 17, 2022, by dialing
1-844-512-2921 (USA) or 1-412-317-6671 (International). The replay
passcode will be 22020875.
The call will also be webcast live from Dun & Bradstreet’s
investor relations website at https://investor.dnb.com. Following
the completion of the call, a recorded replay of the webcast will
be available on the website.
About Dun & Bradstreet
Dun & Bradstreet, a leading global provider of business
decisioning data and analytics, enables companies around the world
to improve their business performance. Dun & Bradstreet’s Data
Cloud fuels solutions and delivers insights that empower customers
to accelerate revenue, lower cost, mitigate risk, and transform
their businesses. Since 1841, companies of every size have relied
on Dun & Bradstreet to help them manage risk and reveal
opportunity. For more information on Dun & Bradstreet, please
visit www.dnb.com.
Use of Non-GAAP Financial Measures
In addition to reporting GAAP results, we evaluate performance
and report our results on the non-GAAP financial measures discussed
below. We believe that the presentation of these non-GAAP measures
provides useful information to investors and rating agencies
regarding our results, operating trends and performance between
periods. These non-GAAP financial measures include adjusted
revenue, organic revenue, adjusted earnings before interest, taxes,
depreciation and amortization (‘‘adjusted EBITDA’’), adjusted
EBITDA margin, adjusted net income and adjusted net earnings per
diluted share. Adjusted results are non-GAAP measures that adjust
for the impact due to certain acquisition and divestiture related
revenue and expenses, such as costs for banker fees, legal fees,
due diligence, retention payments and contingent consideration
adjustments, restructuring charges, equity-based compensation, and
other non-core gains and charges that are not in the normal course
of our business, such as costs associated with early debt
redemptions, gains and losses on sales of businesses, impairment
charges, the effect of significant changes in tax laws and material
tax and legal settlements. We exclude amortization of recognized
intangible assets resulting from the application of purchase
accounting because it is non-cash and not indicative of our ongoing
and underlying operating performance. Recognized intangible assets
arise from acquisitions, primarily the Take-Private Transaction. We
believe that recognized intangible assets by their nature are
fundamentally different from other depreciating assets that are
replaced on a predictable operating cycle. Unlike other
depreciating assets, such as developed and purchased software
licenses or property and equipment, there is no replacement cost
once these recognized intangible assets expire and the assets are
not replaced. Additionally, our costs to operate, maintain and
extend the life of acquired intangible assets and purchased
intellectual property are reflected in our operating costs as
personnel, data fee, facilities, overhead and similar items.
Management believes it is important for investors to understand
that such intangible assets were recorded as part of purchase
accounting and contribute to revenue generation. Amortization of
recognized intangible assets will recur in future periods until
such assets have been fully amortized. In addition, we isolate the
effects of changes in foreign exchange rates on our revenue growth
because we believe it is useful for investors to be able to compare
revenue from one period to another, both after and before the
effects of foreign exchange rate changes. The change in revenue
performance attributable to foreign currency rates is determined by
converting both our prior and current periods’ foreign currency
revenue by a constant rate. As a result, we monitor our adjusted
revenue growth both after and before the effects of foreign
exchange rate changes. We believe that these supplemental non-GAAP
financial measures provide management and other users with
additional meaningful financial information that should be
considered when assessing our ongoing performance and comparability
of our operating results from period to period. Our management
regularly uses our supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business and make
operating decisions. These non-GAAP measures are among the factors
management uses in planning for and forecasting future periods.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative to our reported results prepared in
accordance with GAAP.
Our non-GAAP or adjusted financial measures reflect adjustments
based on the following items, as well as the related income
tax.
Adjusted Revenue
We define adjusted revenue as revenue to include a revenue
adjustment due to the timing of the completion of the Bisnode
acquisition. Management uses this measure to evaluate ongoing
performance of the business period over period. In addition, we
isolate the effects of changes in foreign exchange rates on our
revenue growth because we believe it is useful for investors to be
able to compare revenue from one period to another, both after and
before the effects of foreign exchange rate changes. The change in
revenue performance attributable to foreign currency rates is
determined by converting both our prior and current periods’
foreign currency revenue by a constant rate.
Organic Revenue
We define organic revenue as adjusted revenue before the effect
of foreign exchange excluding revenue from acquired businesses for
the first twelve months. In addition, organic revenue excludes
current and prior year revenue associated with divested businesses.
We believe the organic measure provides investors and analysts with
useful supplemental information regarding the Company’s underlying
revenue trends by excluding the impact of acquisitions and
divestitures. Revenue from acquired businesses is primarily related
to the acquisitions of Eyeota Holdings Pte Ltd and NetWise Data,
LLC in the fourth quarter of 2021. Revenue from divested businesses
is related to the business-to-consumer business in Germany that was
sold during the second quarter of 2022.
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as net income (loss) attributable to
Dun & Bradstreet Holdings, Inc. excluding the following
items:
- depreciation and amortization;
- interest expense and income;
- income tax benefit or provision;
- other non-operating expenses or income;
- equity in net income of affiliates;
- net income attributable to non-controlling interests;
- other incremental or reduced expenses and revenue from the
application of purchase accounting (e.g. commission asset
amortization);
- equity-based compensation;
- restructuring charges;
- merger, acquisition and divestiture-related operating
costs;
- transition costs primarily consisting of non-recurring expenses
associated with transformational and integration activities, as
well as incentive expenses associated with our synergy
program;
- legal expense associated with significant legal and regulatory
matters; and
- asset impairment.
We calculate adjusted EBITDA margin by dividing adjusted EBITDA
by adjusted revenue.
Adjusted Net Income
We define adjusted net income as net income (loss) attributable
to Dun & Bradstreet Holdings, Inc. adjusted for the following
items:
- incremental amortization resulting from the application of
purchase accounting. We exclude amortization of recognized
intangible assets resulting from the application of purchase
accounting because it is non-cash and is not indicative of our
ongoing and underlying operating performance. The Company believes
that recognized intangible assets by their nature are fundamentally
different from other depreciating assets that are replaced on a
predictable operating cycle. Unlike other depreciating assets, such
as developed and purchased software licenses or property and
equipment, there is no replacement cost once these recognized
intangible assets expire and the assets are not replaced.
Additionally, the Company’s costs to operate, maintain and extend
the life of acquired intangible assets and purchased intellectual
property are reflected in the Company’s operating costs as
personnel, data fee, facilities, overhead and similar items;
- other incremental or reduced expenses and revenue from the
application of purchase accounting (e.g. commission asset
amortization);
- equity-based compensation;
- restructuring charges;
- merger, acquisition and divestiture-related operating
costs;
- transition costs primarily consisting of non-recurring expenses
associated with transformational and integration activities, as
well as incentive expenses associated with our synergy
program;
- legal expense associated with significant legal and regulatory
matters;
- asset impairment;
- merger, acquisition and divestiture-related non-operating
costs;
- debt refinancing and extinguishment costs;
- tax effect of the non-GAAP adjustments; and
- other tax effect adjustments related to the tax impact of
statutory tax rate changes on deferred taxes, the enactment of the
Coronavirus Aid, Relief, and Economic Security Act (the “CARES
Act”) and other discrete items.
Adjusted Net Earnings Per Diluted Share
We calculate adjusted net earnings per diluted share by dividing
adjusted net income (loss) by the weighted average number of common
shares outstanding for the period plus the dilutive effect of
common shares potentially issuable in connection with awards
outstanding under our stock incentive plan.
Forward-Looking Statements
The statements contained in this release that are not purely
historical are forward-looking statements, including statements
regarding expectations, hopes, intentions or strategies regarding
the future. Forward-looking statements are based on Dun &
Bradstreet’s management’s beliefs, as well as assumptions made by,
and information currently available to, them. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and
similar references to future periods, or by the inclusion of
forecasts or projections. Examples of forward-looking statements
include, but are not limited to, statements we make regarding the
outlook for our future business and financial performance. Because
such statements are based on expectations as to future financial
and operating results and are not statements of fact, actual
results may differ materially from those projected. It is not
possible to predict or identify all risk factors. Consequently, the
risks and uncertainties listed below should not be considered a
complete discussion of all of our potential trends, risks and
uncertainties. We undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
The risks and uncertainties that forward-looking statements are
subject to include, but are not limited to: (i) our ability to
implement and execute our strategic plans to transform the
business; (ii) our ability to develop or sell solutions in a timely
manner or maintain client relationships; (iii) competition for our
solutions; (iv) harm to our brand and reputation; (v) unfavorable
global economic conditions including, but not limited to,
volatility in foreign currency markets and supply chain
disruptions; (vi) risks associated with operating and expanding
internationally; (vii) failure to prevent cybersecurity incidents
or the perception that confidential information is not secure;
(viii) failure in the integrity of our data or systems; (ix) system
failures and personnel disruptions, which could delay the delivery
of our solutions to our clients; (x) loss of access to data sources
or ability to transfer data across the data sources in markets we
operate; (xi) failure of our software vendors and network and cloud
providers to perform as expected or if our relationship is
terminated; (xii) loss or diminution of one or more of our key
clients, business partners or government contracts; (xiii)
dependence on strategic alliances, joint ventures and acquisitions
to grow our business; (xiv) our ability to protect our intellectual
property adequately or cost-effectively; (xv) claims for
intellectual property infringement; (xvi) interruptions, delays or
outages to subscription or payment processing platforms; (xvii)
risks related to acquiring and integrating businesses and
divestitures of existing businesses; (xviii) our ability to retain
members of the senior leadership team and attract and retain
skilled employees; (xix) compliance with governmental laws and
regulations; (xx) risks related to the voting letter agreement
among and registration and other rights held by certain of our
largest shareholders; (xxi) an outbreak of disease, global or
localized health pandemic or epidemic, or the fear of such an event
(such as the COVID-19 global pandemic), including the global
economic uncertainty and measures taken in response; (xxii) the
short- and long-term effects of the COVID-19 global pandemic,
including the pace of recovery or any future resurgence; (xxiii)
increased economic uncertainty related to the ongoing conflict
between Russia and Ukraine and associated trends in macroeconomic
conditions, and (xxiv) the other factors described under the
headings “Risk Factors,” “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” and elsewhere in
our consolidated financial statements for the year ended December
31, 2021, included in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission ("SEC") on February 24,
2022.
Dun & Bradstreet Holdings,
Inc.
Consolidated Statements of
Operations
(In millions, except per share
data)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Revenue
$
556.3
$
541.9
$
1,629.6
$
1,567.3
Cost of services (exclusive of
depreciation and amortization)
175.0
159.4
533.3
487.6
Selling and administrative expenses
184.1
171.5
548.9
515.6
Depreciation and amortization
145.1
156.7
441.5
458.7
Restructuring charges
6.6
4.8
14.3
20.7
Operating costs
510.8
492.4
1,538.0
1,482.6
Operating income (loss)
45.5
49.5
91.6
84.7
Interest income
0.5
0.2
1.1
0.5
Interest expense
(49.1
)
(48.3
)
(138.2
)
(145.2
)
Other income (expense) - net
8.8
13.3
10.7
32.5
Non-operating income (expense) - net
(39.8
)
(34.8
)
(126.4
)
(112.2
)
Income (loss) before provision (benefit)
for income taxes and equity in net income of affiliates
5.7
14.7
(34.8
)
(27.5
)
Less: provision (benefit) for income
taxes
(4.2
)
(2.8
)
(13.6
)
30.4
Equity in net income of affiliates
0.5
0.7
1.8
2.0
Net income (loss)
10.4
18.2
(19.4
)
(55.9
)
Less: net (income) loss attributable to
the non-controlling interest
(2.4
)
(1.6
)
(5.7
)
(4.2
)
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
8.0
$
16.6
$
(25.1
)
$
(60.1
)
Basic earnings (loss) per share of
common stock attributable to Dun & Bradstreet Holdings,
Inc.
$
0.02
$
0.04
$
(0.06
)
$
(0.14
)
Diluted earnings (loss) per share of
common stock attributable to Dun & Bradstreet Holdings,
Inc.
$
0.02
$
0.04
$
(0.06
)
$
(0.14
)
Weighted average number of shares
outstanding-basic
429.2
428.6
429.0
428.7
Weighted average number of shares
outstanding-diluted
429.4
428.7
429.0
428.7
Dun & Bradstreet Holdings,
Inc.
Consolidated Balance
Sheets
(In millions, except share
data and per share data)
(Unaudited)
September 30,
2022
December 31,
2021
Assets
Current assets
Cash and cash equivalents
$
203.9
$
177.1
Accounts receivable, net of allowance of
$13.4 at September 30, 2022 and $16.5 at December 31, 2021
200.4
401.7
Prepaid taxes
69.0
52.2
Other prepaids
88.5
63.9
Swap derivative assets
79.2
10.1
Other current assets
25.6
13.0
Total current assets
666.6
718.0
Non-current assets
Property, plant and equipment, net of
accumulated depreciation of $34.5 at September 30, 2022 and $27.5
at December 31, 2021
93.3
96.8
Computer software, net of accumulated
amortization of $306.6 at September 30, 2022 and $234.2 at December
31, 2021
588.7
557.4
Goodwill
3,400.8
3,493.3
Deferred income tax
13.7
18.5
Other intangibles
4,395.9
4,824.5
Deferred costs
126.3
116.1
Other non-current assets
144.4
172.6
Total non-current assets
8,763.1
9,279.2
Total assets
$
9,429.7
$
9,997.2
Liabilities
Current liabilities
Accounts payable
$
89.7
$
83.5
Accrued payroll
80.2
125.6
Short-term debt
32.7
28.1
Deferred revenue
536.6
569.4
Other accrued and current liabilities
197.2
198.3
Total current liabilities
936.4
1,004.9
Long-term pension and postretirement
benefits
138.3
178.4
Long-term debt
3,552.1
3,716.7
Deferred income tax
1,090.7
1,207.2
Other non-current liabilities
124.6
144.7
Total liabilities
5,842.1
6,251.9
Commitments and contingencies
Equity
Common Stock, $0.0001 par value per share,
authorized—2,000,000,000 shares; 436,619,291 shares issued and
435,732,371 shares outstanding at September 30, 2022 and
432,070,999 shares issued and 431,197,782 shares outstanding at
December 31, 2021
—
—
Capital surplus
4,517.3
4,500.4
Accumulated deficit
(786.9
)
(761.8
)
Treasury Stock, 886,920 shares at
September 30, 2022 and 873,217 December 31, 2021
(0.3
)
(0.3
)
Accumulated other comprehensive loss
(204.8
)
(57.1
)
Total stockholder equity
3,525.3
3,681.2
Non-controlling interest
62.3
64.1
Total equity
3,587.6
3,745.3
Total liabilities and stockholder
equity
$
9,429.7
$
9,997.2
Dun & Bradstreet Holdings,
Inc.
Condensed Consolidated
Statements of Cash Flows
(In millions)
(Unaudited)
Nine months ended September
30,
2022
2021
Cash flows provided by (used in)
operating activities:
Net income (loss)
$
(19.4
)
$
(55.9
)
Reconciliation of net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization
441.5
458.7
Amortization of unrecognized pension loss
(gain)
(0.3
)
1.4
Debt early redemption premium expense
16.3
—
Amortization and write off of deferred
debt issuance costs
19.6
14.2
Equity-based compensation expense
43.9
23.7
Restructuring charge
14.3
20.7
Restructuring payments
(12.3
)
(13.5
)
Changes in deferred income taxes
(98.1
)
(48.7
)
Changes in operating assets and
liabilities: (1)
(Increase) decrease in accounts
receivable
183.9
88.9
(Increase) decrease in prepaid taxes,
other prepaids and other current assets
(48.3
)
62.9
Increase (decrease) in deferred
revenue
(3.8
)
2.5
Increase (decrease) in accounts
payable
7.0
(12.8
)
Increase (decrease) in accrued payroll
(28.1
)
(13.8
)
Increase (decrease) in other accrued and
current liabilities
(24.9
)
(57.1
)
(Increase) decrease in other long-term
assets
(2.4
)
(10.3
)
Increase (decrease) in long-term
liabilities
(51.4
)
(63.7
)
Net, other non-cash adjustments
2.3
4.0
Net cash provided by (used in)
operating activities
439.8
401.2
Cash flows provided by (used in)
investing activities:
Acquisitions of businesses, net of cash
acquired
(0.5
)
(617.0
)
Cash settlements of foreign currency
contracts and net investment hedge
(11.5
)
22.8
Payments for real estate purchase
—
(76.6
)
Capital expenditures
(10.2
)
(8.2
)
Additions to computer software and other
intangibles
(143.0
)
(112.3
)
Other investing activities, net
(0.7
)
0.6
Net cash provided by (used in)
investing activities
(165.9
)
(790.7
)
Cash flows provided by (used in)
financing activities:
Payment for debt early redemption
premiums
(16.3
)
—
Payments of dividends
(21.5
)
—
Payment of long term debt
(420.0
)
—
Proceeds from borrowings on Credit
Facility
242.5
64.1
Proceeds from borrowings on Term Loan
Facility
460.0
300.0
Payments of borrowings on Credit
Facility
(356.3
)
(64.1
)
Payments of borrowing on Term Loan
Facility
(98.4
)
(21.1
)
Payment of debt issuance costs
(7.4
)
(2.6
)
Other financing activities, net
(0.8
)
(2.2
)
Net cash provided by (used in)
financing activities
(218.2
)
274.1
Effect of exchange rate changes on cash
and cash equivalents
(23.3
)
(2.5
)
Increase (decrease) in cash, cash
equivalents and restricted cash
32.4
(117.9
)
Cash, Cash Equivalents and Restricted
Cash, Beginning of Period
177.1
352.3
Cash, Cash Equivalents and Restricted
Cash, End of Period
$
209.5
$
234.4
Supplemental Disclosure of Cash Flow
Information:
Reconciliation of cash, cash
equivalents, and restricted cash to the condensed consolidated
balance sheets
Cash and cash equivalents
$
203.9
$
234.4
Restricted cash included within other
current assets (2)
5.6
—
Total cash, cash equivalents, and
restricted cash shown in the statements of cash flows
$
209.5
$
234.4
Cash Paid for:
Income taxes payment (refund), net
$
111.8
$
(2.4
)
Interest
$
122.8
$
149.7
(1)
Net of the effect of
acquisitions.
(2)
Restricted cash represents funds
set aside associated with the Federal Trade Commission Consent
Order to provide refunds to certain former and current
customers.
Dun & Bradstreet Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures (Unaudited)
(In millions)
Reconciliation of Revenue to
Adjusted Revenue and Organic Revenue
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
GAAP Revenue
$
556.3
$
541.9
$
1,629.6
$
1,567.3
Revenue adjustment due to the Bisnode
acquisition close timing
—
—
—
4.6
Adjusted revenue (a)
$
556.3
$
541.9
$
1,629.6
$
1,571.9
Foreign currency impact
22.4
1.1
44.4
(1.5
)
Adjusted revenue before the effect of
foreign currency (a)
$
578.7
$
543.0
$
1,674.0
$
1,570.4
Revenue from acquisition and divestiture -
before the effect of foreign currency
(15.8
)
(1.4
)
(45.6
)
(5.1
)
Organic revenue - before the effect of
foreign currency (a)
$
562.9
$
541.6
$
1,628.4
$
1,565.3
North America
$
403.6
$
374.1
$
1,152.2
$
1,070.7
International
152.7
167.8
477.4
501.4
Segment revenue
$
556.3
$
541.9
$
1,629.6
$
1,572.1
Corporate and other (a)
—
—
—
(0.2
)
Foreign currency impact
22.4
1.1
44.4
(1.5
)
Adjusted revenue before the effect of
foreign currency (a)
$
578.7
$
543.0
$
1,674.0
$
1,570.4
Revenue from acquisition and divestiture -
before the effect of foreign currency
(15.8
)
(1.4
)
(45.6
)
(5.1
)
Organic revenue - before the effect of
foreign currency (a)
$
562.9
$
541.6
$
1,628.4
$
1,565.3
(a) Including impact of deferred revenue
purchase accounting adjustments
$
—
$
—
$
—
$
(0.2
)
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
(In millions)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
8.0
$
16.6
$
(25.1
)
$
(60.1
)
Depreciation and amortization
145.1
156.7
441.5
458.7
Interest expense - net
48.6
48.1
137.1
144.7
(Benefit) provision for income tax -
net
(4.2
)
(2.8
)
(13.6
)
30.4
EBITDA
197.5
218.6
539.9
573.7
Other income (expense) - net
(8.8
)
(13.3
)
(10.7
)
(32.5
)
Equity in net income of affiliates
(0.5
)
(0.7
)
(1.8
)
(2.0
)
Net income (loss) attributable to
non-controlling interest
2.4
1.6
5.7
4.2
Other incremental or reduced expenses and
revenue from the application of purchase accounting
(3.6
)
(4.0
)
(11.4
)
(8.9
)
Equity-based compensation
17.9
9.0
43.9
23.7
Restructuring charges
6.6
4.8
14.3
20.7
Merger, acquisition and
divestiture-related operating costs
5.3
2.1
17.3
7.2
Transition costs
4.8
1.7
13.7
5.6
Legal expense associated with significant
legal and regulatory matters
0.3
0.5
0.9
11.1
Asset impairment
1.1
0.1
1.3
1.6
Adjusted EBITDA
$
223.0
$
220.4
$
613.1
$
604.4
North America
$
188.4
$
185.5
$
503.1
$
504.0
International
51.6
54.0
153.2
148.1
Corporate and other (a)
(17.0
)
(19.1
)
(43.2
)
(47.7
)
Adjusted EBITDA (a)
$
223.0
$
220.4
$
613.1
$
604.4
Adjusted EBITDA Margin (a)
40.1
%
40.7
%
37.6
%
38.5
%
(a) Including impact of deferred revenue
purchase accounting adjustments:
Impact to adjusted EBITDA
$
—
$
—
$
—
$
(0.2
)
Impact to adjusted EBITDA margin
—
%
—
%
—
%
—
%
Dun & Bradstreet Holdings,
Inc.
Segment Revenue and Adjusted
EBITDA (Unaudited)
(In millions)
Three months ended September
30, 2022
North America
International
Corporate and
Other
Total
Adjusted revenue
$
403.6
$
152.7
$
—
$
556.3
Total operating costs
232.1
104.9
18.6
355.6
Operating income (loss)
171.5
47.8
(18.6
)
200.7
Depreciation and amortization
16.9
3.8
1.6
22.3
Adjusted EBITDA
$
188.4
$
51.6
$
(17.0
)
$
223.0
Adjusted EBITDA margin
46.7
%
33.8
%
N/A
40.1
%
Nine months ended September
30, 2022
North America
International
Corporate and
Other
Total
Adjusted revenue
$
1,152.2
$
477.4
$
—
$
1,629.6
Total operating costs
702.6
335.0
48.4
1,086.0
Operating income (loss)
449.6
142.4
(48.4
)
543.6
Depreciation and amortization
53.5
10.8
5.2
69.5
Adjusted EBITDA
$
503.1
$
153.2
$
(43.2
)
$
613.1
Adjusted EBITDA margin
43.7
%
32.1
%
N/A
37.6
%
Three months ended September
30, 2021
North America
International
Corporate and
Other
Total
Adjusted revenue
$
374.1
$
167.8
$
—
$
541.9
Total operating costs
205.2
117.0
21.0
343.2
Operating income (loss)
168.9
50.8
(21.0
)
198.7
Depreciation and amortization
16.6
3.2
1.9
21.7
Adjusted EBITDA
$
185.5
$
54.0
$
(19.1
)
$
220.4
Adjusted EBITDA margin
49.6
%
32.2
%
N/A
40.7
%
Nine months ended September
30, 2021
North America
International
Corporate and
Other (a)
Total
Adjusted revenue
$
1,070.7
$
501.4
$
(0.2
)
$
1,571.9
Total operating costs
610.5
362.1
53.5
1,026.1
Operating income (loss)
460.2
139.3
(53.7
)
545.8
Depreciation and amortization
43.8
8.8
6.0
58.6
Adjusted EBITDA
$
504.0
$
148.1
$
(47.7
)
$
604.4
Adjusted EBITDA margin
47.1
%
29.5
%
N/A
38.5
%
(a) Includes deferred revenue
purchase accounting adjustments.
Dun & Bradstreet Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures (Unaudited)
(In millions, except per share
data)
Reconciliation of Net Income
(Loss) to Adjusted Net Income (Loss)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
8.0
$
16.6
$
(25.1
)
$
(60.1
)
Incremental amortization of intangible
assets resulting from the application of purchase accounting
122.8
135.0
372.0
400.1
Other incremental or reduced expenses and
revenue from the application of purchase accounting
(3.6
)
(4.0
)
(11.4
)
(8.9
)
Equity-based compensation
17.9
9.0
43.9
23.7
Restructuring charges
6.6
4.8
14.3
20.7
Merger, acquisition and
divestiture-related operating costs
5.3
2.1
17.3
7.2
Transition costs
4.8
1.7
13.7
5.6
Legal expense associated with significant
legal and regulatory matters
0.3
0.5
0.9
11.1
Asset impairment
1.1
0.1
1.3
1.6
Merger, acquisition and
divestiture-related non-operating costs
—
—
2.0
2.3
Debt refinancing and extinguishment
costs
1.3
—
24.3
1.1
Tax effect of non-GAAP adjustments
(36.0
)
(42.3
)
(115.6
)
(112.0
)
Other tax effect adjustments
(5.1
)
(0.1
)
(4.4
)
36.8
Adjusted net income (loss) attributable to
Dun & Bradstreet Holdings, Inc. (a)
$
123.4
$
123.4
$
333.2
$
329.2
Adjusted diluted earnings (loss) per share
of common stock
$
0.29
$
0.29
$
0.78
$
0.77
Weighted average number of shares
outstanding - diluted
429.4
428.7
429.4
428.8
(a) Including impact of deferred revenue
purchase accounting adjustments:
Pre and post tax impact
$
—
$
—
$
—
$
(0.2
)
Net impact to adjusted net income (loss)
attributable to Dun & Bradstreet Holdings, Inc.
$
—
$
—
$
—
$
(0.2
)
Net impact to adjusted diluted earnings
(loss) per share of common stock
$
—
$
—
$
—
$
—
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221103005403/en/
Investor Contact: 904-648-8006 IR@dnb.com
Media Contact: Lisette Kwong 973-921-6263
KwongL@dnb.com
Dun and Bradstreet (NYSE:DNB)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Dun and Bradstreet (NYSE:DNB)
Historical Stock Chart
Von Apr 2023 bis Apr 2024