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, 2023. 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.”
- Revenue for the third quarter of 2023 was $588.5 million, an
increase of 5.8% and 4.8% on a constant currency basis compared to
the third quarter of 2022.
- GAAP net income for the third quarter of 2023 was $4.4 million,
or diluted earnings per share of $0.01, compared to net income of
$8.0 million, or diluted earnings per share of $0.02 for the prior
year quarter. Adjusted net income was $116.2 million, compared to
adjusted net income of $115.4 million for the prior year quarter.
Adjusted diluted earnings per share was $0.27, flat compared to the
prior year quarter.
- Adjusted EBITDA for the third quarter of 2023 was $235.4
million, an increase of 5.6% compared to the third quarter of 2022,
and adjusted EBITDA margin for the third quarter of 2023 was
40.0%.
“We delivered another strong quarter of financial results and
operational execution, with organic constant currency revenue
growth of 4.8% and Adjusted EBITDA growth of 5.6% and Adjusted
EBITDA margin of 40%. The third quarter maintained our positive
momentum, as we continue to achieve durable and accelerating growth
in a challenging operating environment,” said Anthony Jabbour, Dun
& Bradstreet Chief Executive Officer. “Whether it is adding new
clients, innovating with urgency to solve our clients mission
critical challenges, or coming to market with leading partners, we
remain focused on executing against our strategic vision while
delivering strong and improving financial results. We believe we
are well positioned to capture the significant growth opportunities
in front of us and look forward to closing out the year strong and
preparing for further progress in 2024.”
- Revenue for the nine months ended September 30, 2023 was
$1,683.6 million, an increase of 3.3% and 3.9% on a constant
currency basis compared to the nine months ended September 30,
2022.
- Organic revenue increased 4.0% on a constant currency basis
compared to the nine months ended September 30, 2022.
- GAAP net loss for the nine months ended September 30, 2023 was
$48.7 million, or loss per share of $0.11, compared to net loss of
$25.1 million, or loss per share of $0.06 for the prior year
period. Adjusted net income was $291.8 million, or adjusted diluted
earnings per share of $0.68, compared to adjusted net income of
$308.6 million, or adjusted diluted earnings per share of $0.72 for
the prior year period.
- Adjusted EBITDA for the nine months ended September 30, 2023
was $631.6 million, an increase of 3.0% compared to the nine months
ended September 30, 2022, and adjusted EBITDA margin for the nine
months ended September 30, 2023 was 37.5%.
Segment Results
North America
For the third quarter of 2023, North America revenue was $421.4
million, an increase of $17.8 million or 4.4% and 4.5% on a
constant currency basis compared to the third quarter of 2022.
- Finance and Risk revenue for the third quarter of 2023 was
$234.9 million, an increase of $10.8 million or 4.8% and 4.9% on a
constant currency basis compared to the third quarter of 2022.
- Sales and Marketing revenue for the third quarter of 2023 was
$186.5 million, an increase of $7.0 million or 3.9% compared to the
third quarter of 2022.
North America adjusted EBITDA for the third quarter of 2023 was
$195.6 million, an increase of 3.8%, with adjusted EBITDA margin of
46.4%.
For the nine months ended September 30, 2023, North America
revenue was $1,187.7 million, an increase of $35.5 million or 3.1%
and 3.2% on a constant currency basis compared to the nine months
ended September 30, 2022.
- Finance and Risk revenue for the nine months ended September
30, 2023 was $646.7 million, an increase of $10.9 million or 1.7%
and 1.9% on a constant currency basis compared to the nine months
ended September 30, 2022. This included a $7.5 million negative
impact from the expiration of the GSA contract in April of
2022.
- Sales and Marketing revenue for the nine months ended September
30, 2023 was $541.0 million, an increase of $24.6 million or 4.8%
compared to the nine months ended September 30, 2022.
North America adjusted EBITDA for the nine months ended
September 30, 2023 was $519.6 million, an increase of 3.3%, with
adjusted EBITDA margin of 43.7%.
International
International revenue for the third quarter of 2023 was $167.1
million, an increase of $14.4 million or 9.4% and 5.8% on a
constant currency basis compared to the third quarter of 2022.
- Finance and Risk revenue for the third quarter of 2023 was
$113.6 million, an increase of $11.4 million or 11.1% and 7.5% on a
constant currency basis compared to the third quarter of 2022.
- Sales and Marketing revenue for the third quarter of 2023 was
$53.5 million, an increase of $3.0 million or 5.9% and 2.4% on a
constant currency basis compared to the third quarter of 2022.
International adjusted EBITDA for the third quarter of 2023 was
$55.5 million, an increase of 7.6%, with adjusted EBITDA margin of
33.2%.
International revenue for the nine months ended September 30,
2023 was $495.9 million, an increase of $18.5 million or 3.9% and
5.5% on a constant currency basis compared to the nine months ended
September 30, 2022. Excluding the negative impact of foreign
exchange of $6.6 million and the impact of the divestiture of the
B2C business in Germany, organic revenue on a constant currency
basis increased 5.9%.
- Finance and Risk revenue for the nine months ended September
30, 2023 was $332.2 million, an increase of $19.1 million or 6.1%
and 7.4% on a constant currency basis compared to the nine months
ended September 30, 2022.
- Sales and Marketing revenue for the nine months ended September
30, 2023 was $163.7 million, a decrease of $0.6 million or 0.4% and
an increase of 2.0% on a constant currency basis compared to the
nine months ended September 30, 2022. Excluding the negative impact
of the divestiture during the second quarter of 2022, Sales and
Marketing organic revenue increased 3.2%.
International adjusted EBITDA for the nine months ended
September 30, 2023 was $160.2 million, an increase of 4.6%, with
adjusted EBITDA margin of 32.3%.
Balance Sheet
As of September 30, 2023, we had cash and cash equivalents of
$230.1 million and total principal amount of debt of $3,686.4
million. We had $735.4 million available on our $850 million
revolving credit facility as of September 30, 2023.
Updated Business Outlook
- Revenues after the impact of foreign exchange are expected to
be in the range of $2,280 million to $2,320 million, or ∼2.5% to
4.3%.
- Organic revenue growth is expected to be in the range of 3.75%
to 4.25%.
- Adjusted EBITDA is expected to be in the range of $880 million
to $910 million.
- Adjusted EPS is expected to be in the range of $0.95 to
$1.00.
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 2023 financial results on November 1, 2023 at 8:30am
ET. The conference call can be accessed live over the phone by
dialing 1-844-826-3035 (USA), or 1-412-317-5195 (International).
The conference call replay will be available from 11:30am ET on
November 1, 2023, through November 15, 2023, by dialing
1-844-512-2921 (USA) or 1-412-317-6671 (International). The replay
passcode will be 10182629.
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 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 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.
Organic Revenue
We define organic revenue as reported revenue before the effect
of foreign exchange excluding revenue from acquired businesses, if
applicable, for the first twelve months. In addition, organic
revenue excludes current and prior year revenue associated with
divested businesses, if applicable. 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
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;
- equity-based compensation;
- 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;
and
- other adjustments primarily related to non-cash charges and
gains, including impairment charges and adjustments as the result
of the application of purchase accounting mainly in 2022 related to
the deferred commission cost amortization associated with the
Take-Private Transaction. In addition, other adjustments also
include non-recurring charges such as legal expense associated with
significant legal and regulatory matters.
We calculate adjusted EBITDA margin by dividing adjusted EBITDA
by 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;
- equity-based compensation;
- 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;
- merger, acquisition and divestiture-related non-operating
costs;
- debt refinancing and extinguishment costs;
- non-operating pension-related income (expenses) includes
certain costs and income associated with our pension and
postretirement plans, consisting of interest cost, expected return
on plan assets and amortized actuarial gains or losses, prior
service credits and if applicable, plan settlement charges. These
adjustments are non-cash and market-driven, primarily due to the
changes in the value of pension plan assets and liabilities which
are tied to financial market performance and conditions;
- non-cash gain and loss resulted from the modification of our
interest rate swaps;
- other adjustments primarily related to non-cash charges and
gains, including impairment charges and adjustments as the result
of the application of purchase accounting mainly related to the
deferred commission cost amortization associated with the
Take-Private Transaction. In addition, other adjustments also
include non-recurring charges such as legal expense associated with
significant legal and regulatory matters;
- 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 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 interest rates, foreign currency markets, inflation,
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 where 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 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, the conflict in the Middle East, 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,” “Cautionary Note Regarding Forward-Looking Statements”
and other sections of our Annual Report on Form 10-K filed with the
Securities and Exchange Commission ("SEC") on February 23,
2023.
Dun & Bradstreet Holdings,
Inc. Consolidated Statements of Operations (In
millions, except per share data)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Revenue
$
588.5
$
556.3
$
1,683.6
$
1,629.6
Cost of services (exclusive of
depreciation and amortization)
206.5
175.0
607.4
533.3
Selling and administrative expenses
181.6
184.1
552.2
548.9
Depreciation and amortization
146.7
145.1
437.1
441.5
Restructuring charges
1.6
6.6
10.4
14.3
Operating costs
536.4
510.8
1,607.1
1,538.0
Operating income (loss)
52.1
45.5
76.5
91.6
Interest income
1.7
0.5
4.2
1.1
Interest expense
(57.0
)
(49.1
)
(168.4
)
(138.2
)
Other income (expense) - net
(3.3
)
8.8
(1.2
)
10.7
Non-operating income (expense) - net
(58.6
)
(39.8
)
(165.4
)
(126.4
)
Income (loss) before provision (benefit)
for income taxes and equity in net income of affiliates
(6.5
)
5.7
(88.9
)
(34.8
)
Less: provision (benefit) for income
taxes
(11.2
)
(4.2
)
(40.5
)
(13.6
)
Equity in net income of affiliates
0.6
0.5
2.1
1.8
Net income (loss)
5.3
10.4
(46.3
)
(19.4
)
Less: net (income) loss attributable to
the non-controlling interest
(0.9
)
(2.4
)
(2.4
)
(5.7
)
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
4.4
$
8.0
$
(48.7
)
$
(25.1
)
Basic earnings (loss) per share of
common stock attributable to Dun & Bradstreet Holdings,
Inc.
$
0.01
$
0.02
$
(0.11
)
$
(0.06
)
Diluted earnings (loss) per share of
common stock attributable to Dun & Bradstreet Holdings,
Inc.
$
0.01
$
0.02
$
(0.11
)
$
(0.06
)
Weighted average number of shares
outstanding-basic
430.8
429.2
430.3
429.0
Weighted average number of shares
outstanding-diluted
432.2
429.4
430.3
429.0
Dun & Bradstreet Holdings,
Inc. Consolidated Balance Sheets (In millions, except
share data and per share data)
September 30,
2023
December 31,
2022
Assets
Current assets
Cash and cash equivalents
$
230.1
$
208.4
Accounts receivable, net of allowance of
$17.4 at September 30, 2023 and $14.3 at December 31, 2022
221.4
271.6
Prepaid taxes
56.3
57.7
Other prepaids
87.0
77.2
Other current assets
90.8
89.0
Total current assets
685.6
703.9
Non-current assets
Property, plant and equipment, net of
accumulated depreciation of $41.8 at September 30, 2023 and $38.4
at December 31, 2022
95.9
96.9
Computer software, net of accumulated
amortization of $457.4 at September 30, 2023 and $348.8 at December
31, 2022
650.9
631.8
Goodwill
3,413.9
3,431.3
Other intangibles
3,998.4
4,320.1
Deferred costs
148.9
143.7
Other non-current assets
141.6
144.2
Total non-current assets
8,449.6
8,768.0
Total assets
$
9,135.2
$
9,471.9
Liabilities
Current liabilities
Accounts payable
$
80.4
$
80.5
Accrued payroll
84.1
109.5
Short-term debt
32.7
32.7
Deferred revenue
560.7
563.1
Other accrued and current liabilities
179.2
316.8
Total current liabilities
937.1
1,102.6
Long-term pension and postretirement
benefits
141.5
158.2
Long-term debt
3,605.9
3,552.2
Deferred income tax
911.9
1,023.7
Other non-current liabilities
115.1
126.8
Total liabilities
5,711.5
5,963.5
Commitments and contingencies
Equity
Common Stock, $0.0001 par value per share,
authorized—2,000,000,000 shares; 439,863,575 shares issued and
438,976,655 shares outstanding at September 30, 2023 and
436,604,447 shares issued and 435,717,527 shares outstanding at
December 31, 2022
—
—
Capital surplus
4,433.9
4,443.7
Accumulated deficit
(812.8
)
(764.1
)
Treasury Stock, 886,920 shares at both
September 30, 2023 and December 31, 2022
(0.3
)
(0.3
)
Accumulated other comprehensive loss
(208.5
)
(180.0
)
Total stockholder equity
3,412.3
3,499.3
Non-controlling interest
11.4
9.1
Total equity
3,423.7
3,508.4
Total liabilities and stockholder
equity
$
9,135.2
$
9,471.9
Dun & Bradstreet Holdings,
Inc. Condensed Consolidated Statements of Cash Flows
(In millions)
Nine months ended September
30,
2023
2022
Cash flows provided by (used in)
operating activities:
Net income (loss)
$
(46.3
)
$
(19.4
)
Reconciliation of net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization
437.1
441.5
Amortization of unrecognized pension loss
(gain)
(2.1
)
(0.3
)
Debt early redemption premium expense
—
16.3
Deferred debt issuance costs amortization
and write-off
14.0
19.6
Equity-based compensation expense
66.1
43.9
Restructuring charge
10.4
14.3
Restructuring payments
(12.1
)
(12.3
)
Changes in deferred income taxes
(114.3
)
(98.1
)
Changes in operating assets and
liabilities:
(Increase) decrease in accounts
receivable
51.8
183.9
(Increase) decrease in prepaid taxes,
other prepaids and other current assets
(26.1
)
(48.3
)
Increase (decrease) in deferred
revenue
4.6
(3.8
)
Increase (decrease) in accounts
payable
(9.6
)
7.0
Increase (decrease) in accrued payroll
(12.4
)
(28.1
)
Increase (decrease) in other accrued and
current liabilities
(41.9
)
(24.9
)
(Increase) decrease in other long-term
assets
3.2
(2.4
)
Increase (decrease) in long-term
liabilities
(34.0
)
(51.4
)
Net, other non-cash adjustments
(4.7
)
2.3
Net cash provided by (used in)
operating activities
283.7
439.8
Cash flows provided by (used in)
investing activities:
Acquisitions of businesses, net of cash
acquired
—
(0.5
)
Cash settlements of foreign currency
contracts and net investment hedge
7.7
(11.5
)
Capital expenditures
(3.7
)
(10.2
)
Additions to computer software and other
intangibles
(126.2
)
(143.0
)
Other investing activities, net
1.9
(0.7
)
Net cash provided by (used in)
investing activities
(120.3
)
(165.9
)
Cash flows provided by (used in)
financing activities:
Payment for debt early redemption
premiums
—
(16.3
)
Payments of dividends
(64.6
)
(21.5
)
Payment of long term debt
—
(420.0
)
Proceeds from borrowings on Credit
Facility
380.3
242.5
Proceeds from borrowings on Term Loan
Facility
—
460.0
Payments of borrowings on Credit
Facility
(316.0
)
(356.3
)
Payments of borrowing on Term Loan
Facility
(24.5
)
(98.4
)
Payment of debt issuance costs
—
(7.4
)
Payment for purchase of non-controlling
interests
(95.7
)
—
Other financing activities, net
(18.8
)
(0.8
)
Net cash provided by (used in)
financing activities
(139.3
)
(218.2
)
Effect of exchange rate changes on cash
and cash equivalents
(2.4
)
(23.3
)
Increase (decrease) in cash, cash
equivalents and restricted cash
21.7
32.4
Cash, Cash Equivalents and Restricted
Cash, Beginning of Period
208.4
177.1
Cash, Cash Equivalents and Restricted
Cash, End of Period
$
230.1
$
209.5
Supplemental Disclosure of Cash Flow Information:
Reconciliation of cash, cash
equivalents, and restricted cash to the condensed consolidated
balance sheets
Cash and cash equivalents
$
230.1
$
203.9
Restricted cash included within other
current assets (1)
—
5.6
Total cash, cash equivalents, and
restricted cash shown in the statements of cash flows
$
230.1
$
209.5
Cash Paid for:
Income taxes payment (refund), net
$
75.5
$
111.8
Interest
$
151.2
$
122.8
(1)
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 Net Income (Loss) to Adjusted
EBITDA (In millions)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
4.4
$
8.0
$
(48.7
)
$
(25.1
)
Depreciation and amortization
146.7
145.1
437.1
441.5
Interest expense - net
55.3
48.6
164.2
137.1
(Benefit) provision for income tax -
net
(11.2
)
(4.2
)
(40.5
)
(13.6
)
EBITDA
195.2
197.5
512.1
539.9
Other income (expense) - net
3.3
(8.8
)
1.2
(10.7
)
Equity in net income of affiliates
(0.6
)
(0.5
)
(2.1
)
(1.8
)
Net income (loss) attributable to
non-controlling interest
0.9
2.4
2.4
5.7
Equity-based compensation
20.8
17.9
66.1
43.9
Restructuring charges
1.6
6.6
10.4
14.3
Merger and acquisition-related operating
costs
1.4
5.3
5.4
17.3
Transition costs
11.7
4.8
31.1
13.7
Other adjustments (1)
1.1
(2.2
)
5.0
(9.2
)
Adjusted EBITDA
$
235.4
$
223.0
$
631.6
$
613.1
North America
$
195.6
$
188.4
$
519.6
$
503.1
International
55.5
51.6
160.2
153.2
Corporate and other
(15.7
)
(17.0
)
(48.2
)
(43.2
)
Adjusted EBITDA
$
235.4
$
223.0
$
631.6
$
613.1
Adjusted EBITDA Margin
40.0
%
40.1
%
37.5
%
37.6
%
(1)
Adjustments for 2023 were primarily related to legal fees
associated with ongoing legal matters and impairment charges.
Adjustments for 2022 were primarily related to non-cash purchase
accounting adjustments for deferred commission costs associated
with the Take-Private Transaction.
Dun & Bradstreet Holdings,
Inc. Segment Revenue and Adjusted EBITDA (Unaudited)
(In millions)
Three months ended September
30, 2023
North America
International
Corporate and Other
Total
Revenue
$
421.4
$
167.1
$
—
$
588.5
Total operating costs
250.1
116.7
17.3
384.1
Operating income (loss)
171.3
50.4
(17.3
)
204.4
Depreciation and amortization
24.3
5.1
1.6
31.0
Adjusted EBITDA
$
195.6
$
55.5
$
(15.7
)
$
235.4
Adjusted EBITDA margin
46.4
%
33.2
%
N/A
40.0
%
Nine months ended September
30, 2023
North America
International
Corporate and Other
Total
Revenue
$
1,187.7
$
495.9
$
—
$
1,683.6
Total operating costs
734.9
351.0
53.1
1,139.0
Operating income (loss)
452.8
144.9
(53.1
)
544.6
Depreciation and amortization
66.8
15.3
4.9
87.0
Adjusted EBITDA
$
519.6
$
160.2
$
(48.2
)
$
631.6
Adjusted EBITDA margin
43.7
%
32.3
%
N/A
37.5
%
Three months ended September
30, 2022
North America
International
Corporate and Other
Total
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
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
%
Dun & Bradstreet Holdings,
Inc. Reconciliation of Net Income (Loss) to Adjusted Net
Income (Loss) (In millions, except per share data)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
4.4
$
8.0
$
(48.7
)
$
(25.1
)
Incremental amortization of intangible
assets resulting from the application of purchase accounting
115.7
122.8
350.1
372.0
Equity-based compensation
20.8
17.9
66.1
43.9
Restructuring charges
1.6
6.6
10.4
14.3
Merger and acquisition-related operating
costs
1.4
5.3
5.4
17.3
Transition costs
11.7
4.8
31.1
13.7
Merger and acquisition-related
non-operating costs
—
—
—
2.0
Debt refinancing and extinguishment
costs
2.5
1.3
2.5
24.3
Non-operating pension-related income
(4.6
)
(10.9
)
(13.8
)
(33.3
)
Non-cash gain from interest rate swap
amendment
(2.6
)
—
(2.6
)
—
Other adjustments (1)
2.2
(2.2
)
6.1
(9.2
)
Tax effect of non-GAAP adjustments
(36.9
)
(33.1
)
(116.5
)
(106.9
)
Other tax effect adjustments
—
(5.1
)
1.7
(4.4
)
Adjusted net income (loss) attributable to
Dun & Bradstreet Holdings, Inc. (2)
$
116.2
$
115.4
$
291.8
$
308.6
Adjusted diluted earnings (loss) per share
of common stock
$
0.27
$
0.27
$
0.68
$
0.72
Weighted average number of shares
outstanding - diluted
432.2
429.4
431.8
429.4
(1)
Adjustments for 2023 were primarily
related to legal fees associated with ongoing legal matters.
Adjustments for 2022 were primarily related to non-cash purchase
accounting adjustments for deferred commission costs associated
with the Take-Private Transaction.
(2)
Starting in the first quarter of 2023, we
exclude non-operating pension-related income from Adjusted net
income (loss) and all prior periods have been adjusted
accordingly.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031072852/en/
Investor Contact: 904-648-8006 IR@dnb.com
Media Contact: Dawn McAbee 904-648-6328
Mcabeed@dnb.com
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