D&B Announces 1Q2012 Results; Revises Revenue & Free Cash Flow Full Year Outlook
May 7, 2012
D&B Announces First Quarter 2012 Results; Revises Revenue and Free Cash Flow Full Year Outlook
•Diluted EPS Before Non-Core Gains and Charges Up 5% From the Prior Year Similar Period; GAAP Diluted EPS Up 32%; •Core Revenue Up 1% Both Before and After the Effect of Foreign Exchange; •Total Revenue on a GAAP Basis Flat Both Before and After the Effect of Foreign Exchange; •Announces the Shut Down of Shanghai Roadway D&B Marketing Services Co. Ltd.
SHORT HILLS, N.J.--(BUSINESS WIRE)-- D&B (NYSE: DNB), the world's leading source of commercial information and insight on businesses, today reported results for the first quarter ended March 31, 2012.
"Our first quarter results were below expectations, due to unexpected weakness in North America partially offset by strong performance in International. Weakness in North America Risk Management Solutions coupled with the situation in China has necessitated a reduction to our full year revenue and free cash flow guidance. Despite the disappointing top line, we are leveraging our flexible business model to ensure we deliver our prior operating income and EPS commitments. Of note, our technology transformation remains on track and once completed, it will become the foundation to drive sustainable top line growth," stated Sara Mathew, D&B's Chairman and Chief Executive Officer.
First Quarter 2012 Results
Diluted earnings per share before non-core gains and charges for the quarter ended March 31, 2012 were $1.35, up 5% from $1.29 in the prior year similar period.
On a GAAP basis, diluted earnings per share for the quarter ended March 31, 2012 were $1.32, up 32% from $1.00 in the prior year similar period.
See attached Schedule 3 for a reconciliation of diluted 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 first quarter of 2012 was $390.1 million, up 1% from the prior year similar period both before and after the effect of foreign exchange. Deferred revenue was $631.0 million, down 2% from the prior year similar period.
Core revenue results for the first quarter of 2012 reflect the following by solution set: • Risk Management Solutions revenue of $253.0 million, down 2% both before and after the effect of foreign exchange, as compared to the prior year similar period; • Sales & Marketing Solutions revenue of $107.0 million, up 8% both before and after the effect of foreign exchange, as compared to the prior year similar period; and • Internet Solutions revenue of $30.1 million, up 5% both before and after the effect of foreign exchange, as compared to the prior year similar period.
See attached Schedules 4, 5 and 6 for additional detail.
Total revenue for the first quarter of 2012 was $402.8 million, flat both before and after the effect of foreign exchange from the prior year similar period. Total revenue for the first quarter of 2012 included the results of the domestic portion of our Japanese operations that was divested during the first quarter of 2012. Total revenue for the first quarter of 2011 included the results from Purisma, AllBusiness and a small supply management company in North America, as well as our market research business in China and the domestic portion of our Japanese operations that were recently divested.
Operating income before non-core gains and charges for the first quarter of 2012 was $106.0 million, up 3% from the prior year similar period, primarily due to reengineering savings. On a GAAP basis, operating income was $74.4 million, down 17% from the prior year similar period, primarily due to impairment charges related to the shut down of our Shanghai Roadway D&B Marketing Services Co. Ltd. in China.
Interesting Q&A. Finally, after 5+ years of bleeding customers and employees they've decided to acquire larger new customers. They're so used to NOT doing this that they actually sounded like they were patting themselves on the back for thinking of this novel new idea.
Did anyone ever tell them that every S&P 500 company EXCEPT D&B tries to acquire new customers? Of all sizes? Imagine the head of SFDC saying "we just came up with a great new idea, one that we've seen succeed in other channels, to acquire new customers." It's laughable.
When Shlomo asked Byron about whether they have the plans already moving on acquiring larger customers you could hear him thinking "Oh S*it, I need a plan!" He hemmed and hawed with valor though.
Meanwhile, if these "get new customers" plans are as effective as the job done at CIO of keeping DNBi up (it was down constantly), fixing Purisma (SOLD IT OFF) or running RMS (DECLINING FASTER EVERY DAY) unfortunately they might as well just blow the money on another going away party -- who will it be for this time?
Your Comment lacks integrity and is abusive. perhaps you are one of the people who had an entitlement issue. But your bashing does not help the situation. It would be very easy for sara to fire john or anyone else. This is a time for the Leadership Team to rally as they have and not to divide as you suggest. You post lacks courage as john has suggested and is filled in fear. (yes he did tell us about courage and fear and yes I have worked in his organization for the last 3 years) Give him all in a call in SH. I am sure you can reach him through the main number and understand rather than bash. Jehaty19 you are a coward.