☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 83-2008699 | ||||
(State of incorporation) | (I.R.S. Employer Identification No.) | ||||
5335 Gate Parkway, Jacksonville, FL | 32256 | ||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, $0.0001 par value | DNB | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
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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 | |||||||||||||||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||||||||||||||
Net income (loss) | $ | 10.4 | $ | 18.2 | $ | (19.4) | $ | (55.9) | |||||||||||||||
Foreign currency adjustments: | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax (1) | $ | (93.1) | $ | (30.3) | $ | (220.0) | $ | (63.2) | |||||||||||||||
Net investment hedge derivative, net of tax (2) | 16.4 | — | 21.9 | — | |||||||||||||||||||
Cash flow hedge derivative, net of tax expense (benefit) (3) | 12.5 | (0.1) | 43.4 | 0.7 | |||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||
Prior service credit (cost), net of tax expense (benefit) (4) | — | (0.2) | (0.2) | (0.3) | |||||||||||||||||||
Net actuarial gain (loss), net of tax expense (benefit) (5) | — | 0.6 | — | 1.5 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | $ | (64.2) | $ | (30.0) | $ | (154.9) | $ | (61.3) | |||||||||||||||
Comprehensive income (loss), net of tax | $ | (53.8) | $ | (11.8) | $ | (174.3) | $ | (117.2) | |||||||||||||||
Less: comprehensive (income) loss attributable to the non-controlling interest | 1.3 | (1.6) | 1.5 | (5.8) | |||||||||||||||||||
Comprehensive income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $ | (52.5) | $ | (13.4) | $ | (172.8) | $ | (123.0) |
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 (Notes 3 and 6) | 200.4 | 401.7 | |||||||||
Prepaid taxes | 69.0 | 52.2 | |||||||||
Other prepaids | 88.5 | 63.9 | |||||||||
Swap derivative assets (Note 13) | 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 (Note 16) | 588.7 | 557.4 | |||||||||
Goodwill (Notes 15 and 16) | 3,400.8 | 3,493.3 | |||||||||
Deferred income tax | 13.7 | 18.5 | |||||||||
Other intangibles (Notes 15 and 16) | 4,395.9 | 4,824.5 | |||||||||
Deferred costs (Note 3) | 126.3 | 116.1 | |||||||||
Other non-current assets (Note 7) | 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 (Note 5) | 32.7 | 28.1 | |||||||||
Deferred revenue (Note 3) | 536.6 | 569.4 | |||||||||
Other accrued and current liabilities (Note 7) | 197.2 | 198.3 | |||||||||
Total current liabilities | 936.4 | 1,004.9 | |||||||||
Long-term pension and postretirement benefits (Note 10) | 138.3 | 178.4 | |||||||||
Long-term debt (Note 5) | 3,552.1 | 3,716.7 | |||||||||
Deferred income tax | 1,090.7 | 1,207.2 | |||||||||
Other non-current liabilities (Note 7) | 124.6 | 144.7 | |||||||||
Total liabilities | 5,842.1 | 6,251.9 | |||||||||
Commitments and contingencies (Note 8) | |||||||||||
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 shares at 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 |
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 | |||||||
Noncash Investing and Financing activities: | |||||||||||
Fair value of acquired assets, including measurement period adjustments | $ | 0.5 | $ | 1,181.8 | |||||||
Cash paid for acquired businesses | (0.5) | (646.9) | |||||||||
6,237,087 shares of common stock issued for the acquisition | — | (158.9) | |||||||||
Assumed liabilities from acquired businesses including non-controlling interest and measurement period adjustments | $ | — | $ | 376.0 | |||||||
Noncash additions to computer software | $ | 20.1 | $ | 10.4 |
Common stock | Capital surplus | (Accumulated deficit) Retained earnings | Treasury stock | Cumulative translation adjustment | Defined benefit postretirement plans | Cash flow hedging derivative | Total stockholder equity | Non-controlling interest | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | — | $ | 4,310.2 | $ | (690.1) | $ | — | $ | 26.2 | $ | (120.3) | $ | (0.4) | $ | 3,525.6 | $ | 58.3 | $ | 3,583.9 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | (60.1) | — | — | — | — | (60.1) | 4.2 | (55.9) | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for Bisnode acquisition | — | 158.9 | — | — | — | — | — | 158.9 | — | 158.9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation plans | — | 22.0 | — | (0.3) | — | — | — | 21.7 | — | 21.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension adjustments, net of tax expense of $0.2 | — | — | — | — | — | 1.2 | — | 1.2 | — | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in cumulative translation adjustment, net of tax expense of $1.7 | — | — | — | — | (64.8) | — | — | (64.8) | 1.6 | (63.2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge derivative financial instruments, net of tax expense of $0.2 | — | — | — | — | — | — | 0.7 | 0.7 | — | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payment to non-controlling interest | — | — | — | — | — | — | — | — | (2.0) | (2.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | — | $ | 4,491.1 | $ | (750.2) | $ | (0.3) | $ | (38.6) | $ | (119.1) | $ | 0.3 | $ | 3,583.2 | $ | 62.1 | $ | 3,645.3 | |||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | — | $ | 4,482.4 | $ | (766.8) | $ | (0.3) | $ | (8.3) | $ | (119.5) | $ | 0.4 | $ | 3,587.9 | $ | 60.7 | $ | 3,648.6 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | 16.6 | — | — | — | — | 16.6 | 1.6 | 18.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation plans | — | 8.7 | — | — | — | — | — | 8.7 | — | 8.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension adjustments, net of tax expense $0.1 | — | — | — | — | — | 0.4 | — | 0.4 | — | 0.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in cumulative translation adjustment, net of tax benefit of $1.3 | — | — | — | — | (30.3) | — | — | (30.3) | — | (30.3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge derivative, net of tax benefit of $0.1 | — | — | — | — | — | — | (0.1) | (0.1) | — | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Payment to non-controlling interest | — | — | — | — | — | — | — | — | (0.2) | (0.2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | — | $ | 4,491.1 | $ | (750.2) | $ | (0.3) | $ | (38.6) | $ | (119.1) | $ | 0.3 | $ | 3,583.2 | $ | 62.1 | $ | 3,645.3 | |||||||||||||||||||||||||||||||||||||||
Common stock | Capital surplus | (Accumulated deficit) retained earnings | Treasury stock | Cumulative translation adjustment | Defined benefit postretirement plans | Cash flow hedging derivative | Total stockholder equity | Non-controlling interest | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | — | $ | 4,500.4 | $ | (761.8) | $ | (0.3) | $ | (52.6) | $ | (11.9) | $ | 7.4 | $ | 3,681.2 | $ | 64.1 | $ | 3,745.3 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | (25.1) | — | — | — | — | (25.1) | 5.7 | (19.4) | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation plans | — | 38.7 | — | — | — | — | — | 38.7 | — | 38.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared (1) | — | (21.8) | — | — | — | — | — | (21.8) | — | (21.8) | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension adjustments, net of tax benefit of $0.1 | — | — | — | — | — | (0.2) | — | (0.2) | — | (0.2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in cumulative translation adjustment, net of tax benefit of $6.9 | — | — | — | — | (212.8) | — | — | (212.8) | (7.2) | (220.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedge derivative, net of tax expense of $8.0 | — | — | — | — | 21.9 | — | — | 21.9 | — | 21.9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge derivative, net of tax expense of $15.9 | — | — | — | — | — | — | 43.4 | 43.4 | — | 43.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payment to non-controlling interest | — | — | — | — | — | — | — | — | (0.3) | (0.3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | — | $ | 4,517.3 | $ | (786.9) | $ | (0.3) | $ | (243.5) | $ | (12.1) | $ | 50.8 | $ | 3,525.3 | $ | 62.3 | $ | 3,587.6 | |||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | — | $ | 4,521.6 | $ | (794.9) | $ | (0.3) | $ | (170.5) | $ | (12.1) | $ | 38.3 | $ | 3,582.1 | $ | 63.6 | $ | 3,645.7 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | 8.0 | — | — | — | — | 8.0 | 2.4 | 10.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation plans | — | 17.5 | — | — | — | — | — | 17.5 | — | 17.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared (1) | — | (21.8) | — | — | — | — | — | (21.8) | — | (21.8) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in cumulative translation adjustment, net of tax benefit of $4.0 | — | — | — | — | (89.4) | — | — | (89.4) | (3.7) | (93.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedge derivative, net of tax expense of $6.0 | — | — | — | — | 16.4 | — | — | 16.4 | — | 16.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge derivative, net of tax expense of $4.5 | — | — | — | — | — | — | 12.5 | 12.5 | — | 12.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | — | $ | 4,517.3 | $ | (786.9) | $ | (0.3) | $ | (243.5) | $ | (12.1) | $ | 50.8 | $ | 3,525.3 | $ | 62.3 | $ | 3,587.6 |
Remainder of 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Future revenue | $ | 441.4 | $ | 958.6 | $ | 507.8 | $ | 250.1 | $ | 154.6 | $ | 409.7 | $ | 2,722.2 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue recognized at a point in time | $ | 232.2 | $ | 232.1 | $ | 655.3 | $ | 651.7 | |||||||||||||||
Revenue recognized over time | 324.1 | 309.8 | 974.3 | 915.6 | |||||||||||||||||||
Total revenue recognized | $ | 556.3 | $ | 541.9 | $ | 1,629.6 | $ | 1,567.3 |
At September 30, 2022 | At December 31, 2021 | ||||||||||
Accounts receivable, net | $ | 200.4 | $ | 401.7 | |||||||
Short-term contract assets (1) | $ | 7.5 | $ | 3.4 | |||||||
Long-term contract assets (2) | $ | 4.6 | $ | 9.1 | |||||||
Short-term deferred revenue | $ | 536.6 | $ | 569.4 | |||||||
Long-term deferred revenue (3) | $ | 16.3 | $ | 13.7 |
Severance and termination | Contract termination and other exit costs | Total | |||||||||||||||
2022: | |||||||||||||||||
Balance remaining as of December 31, 2021 | $ | 4.7 | $ | 3.3 | $ | 8.0 | |||||||||||
Charge taken during first quarter 2022 (1) | 2.5 | 0.6 | 3.1 | ||||||||||||||
Payments made during first quarter 2022 | (3.4) | (0.6) | (4.0) | ||||||||||||||
Balance remaining as of March 31, 2022 | $ | 3.8 | $ | 3.3 | $ | 7.1 | |||||||||||
Charge taken during second quarter 2022 (1) | 1.9 | — | 1.9 | ||||||||||||||
Payments made during second quarter 2022 | (2.7) | (0.6) | (3.3) | ||||||||||||||
Balance remaining as of June 30, 2022 | $ | 3.0 | $ | 2.7 | $ | 5.7 | |||||||||||
Charge taken during third quarter 2022 (1) | 5.5 | 0.4 | 5.9 | ||||||||||||||
Payments made during third quarter 2022 | (4.3) | (0.6) | (4.9) | ||||||||||||||
Balance remaining as of September 30, 2022 | $ | 4.2 | $ | 2.5 | $ | 6.7 | |||||||||||
2021: | |||||||||||||||||
Balance remaining as of December 31, 2020 | $ | 2.6 | $ | 7.1 | $ | 9.7 | |||||||||||
Charge taken during first quarter 2021 (1) | 4.7 | (0.3) | 4.4 | ||||||||||||||
Payments made during first quarter 2021 | (2.4) | (0.9) | (3.3) | ||||||||||||||
Balance remaining as of March 31, 2021 | $ | 4.9 | $ | 5.9 | $ | 10.8 | |||||||||||
Charge taken during second quarter 2021 (1) | 8.0 | 0.3 | 8.3 | ||||||||||||||
Payments made during second quarter 2021 | (3.9) | (1.0) | (4.9) | ||||||||||||||
Balance remaining as of June 30, 2021 | $ | 9.0 | $ | 5.2 | $ | 14.2 | |||||||||||
Charge taken during third quarter 2021 (1) | 4.0 | — | 4.0 | ||||||||||||||
Payments made during third quarter 2021 | (4.7) | (0.6) | (5.3) | ||||||||||||||
Balance remaining as of September 30, 2021 | $ | 8.3 | $ | 4.6 | $ | 12.9 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Maturity | Principal amount | Debt issuance costs and discount* | Carrying value | Principal amount | Debt issuance costs and discount* | Carrying value | |||||||||||||||||||||||||||||||||||
Debt maturing within one year: | |||||||||||||||||||||||||||||||||||||||||
2026 Term loan (1) | February 8, 2026 | $ | 28.1 | $ | — | $ | 28.1 | $ | 28.1 | $ | — | $ | 28.1 | ||||||||||||||||||||||||||||
2029 Term loan (1) | January 18, 2029 | 4.6 | — | 4.6 | — | — | — | ||||||||||||||||||||||||||||||||||
Total short-term debt | $ | 32.7 | $ | — | $ | 32.7 | $ | 28.1 | $ | — | $ | 28.1 | |||||||||||||||||||||||||||||
Debt maturing after one year: | |||||||||||||||||||||||||||||||||||||||||
2026 Term loan (1) | February 8, 2026 | $ | 2,658.7 | $ | 53.0 | $ | 2,605.7 | $ | 2,754.8 | $ | 64.5 | $ | 2,690.3 | ||||||||||||||||||||||||||||
2029 Term loan (1) | January 18, 2029 | 453.1 | 6.7 | 446.4 | — | — | — | ||||||||||||||||||||||||||||||||||
Revolving facility (1) (2) | September 11, 2025 | 46.2 | — | 46.2 | 160.0 | — | 160.0 | ||||||||||||||||||||||||||||||||||
5.000% Senior unsecured notes (1) | December 15, 2029 | 460.0 | 6.2 | 453.8 | 460.0 | 6.8 | 453.2 | ||||||||||||||||||||||||||||||||||
6.875% Senior secured notes (1) | Fully paid off in January 2022 | — | — | — | 420.0 | 6.8 | 413.2 | ||||||||||||||||||||||||||||||||||
Total long-term debt | $ | 3,618.0 | $ | 65.9 | $ | 3,552.1 | $ | 3,794.8 | $ | 78.1 | $ | 3,716.7 | |||||||||||||||||||||||||||||
Total debt | $ | 3,650.7 | $ | 65.9 | $ | 3,584.8 | $ | 3,822.9 | $ | 78.1 | $ | 3,744.8 |
September 30, 2022 | December 31, 2021 | ||||||||||
Right of use assets | $ | 51.8 | $ | 71.9 | |||||||
Prepaid pension assets | 36.2 | 36.6 | |||||||||
Investments | 26.2 | 27.2 | |||||||||
Other various | 30.2 | 36.9 | |||||||||
Total | $ | 144.4 | $ | 172.6 |
September 30, 2022 | December 31, 2021 | ||||||||||
Accrued operating costs | $ | 112.7 | $ | 113.5 | |||||||
Accrued interest expense | 9.2 | 12.6 | |||||||||
Short-term lease liability | 18.5 | 26.0 | |||||||||
Accrued income tax | 11.8 | 16.4 | |||||||||
Other various | 45.0 | 29.8 | |||||||||
Total | $ | 197.2 | $ | 198.3 |
September 30, 2022 | December 31, 2021 | ||||||||||
Deferred revenue - long term | $ | 16.3 | $ | 13.7 | |||||||
U.S. tax liability associated with the 2017 Act | 39.3 | 44.6 | |||||||||
Long-term lease liability | 42.6 | 59.4 | |||||||||
Liabilities for unrecognized tax benefits | 17.8 | 19.2 | |||||||||
Other various | 8.6 | 7.8 | |||||||||
Total | $ | 124.6 | $ | 144.7 |
Pension plans | Postretirement benefit obligations | ||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Components of net periodic cost (income): | |||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 0.7 | $ | 1.3 | $ | 2.3 | $ | 3.9 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Interest cost | 8.8 | 7.0 | 26.4 | 20.7 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (19.6) | (20.8) | (59.4) | (62.5) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | — | — | — | — | (0.1) | (0.1) | (0.3) | (0.3) | |||||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss (gain) | — | 0.6 | — | 1.7 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net periodic cost (income) | $ | (10.1) | $ | (11.9) | $ | (30.7) | $ | (36.2) | $ | (0.1) | $ | (0.1) | $ | (0.3) | $ | (0.3) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
Stock-based compensation expense: | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Restricted stock and restricted stock units (1) | $ | 14.6 | $ | 5.3 | $ | 36.6 | $ | 12.9 | |||||||||||||||
Stock options | 3.3 | 1.0 | 4.9 | 2.1 | |||||||||||||||||||
Incentive units (2) | — | 2.7 | 2.4 | 8.7 | |||||||||||||||||||
Total compensation expense | $ | 17.9 | $ | 9.0 | $ | 43.9 | $ | 23.7 | |||||||||||||||
Expected tax benefit: | |||||||||||||||||||||||
Restricted stock and restricted stock units | $ | 1.6 | $ | (0.9) | $ | 4.7 | $ | 2.2 | |||||||||||||||
Stock options | 0.3 | 0.1 | 0.4 | (0.2) | |||||||||||||||||||
Total expected tax benefit | $ | 1.9 | $ | (0.8) | $ | 5.1 | $ | 2.0 |
Date | Number of shares granted | Weighted average grant date fair value per share | Vesting period (in years) | Vesting criteria | ||||||||||||||||||||||
Restricted Stock & RSU's: (1) | ||||||||||||||||||||||||||
March 10, 2022 | 96,509 | $16.58 | 1.0 | Service | ||||||||||||||||||||||
March 10, 2022 (2) | 3,254,916 | $16.58 | 3.0 | Service & Performance | ||||||||||||||||||||||
March 31, 2022 | 89,334 | $17.52 | 3.0 | Service | ||||||||||||||||||||||
June 30, 2022 | 143,052 | $15.03 | 3.0 | Service | ||||||||||||||||||||||
August 5, 2022 (2) | 1,998,118 | $15.89 | 3.0 | Service & Performance | ||||||||||||||||||||||
September 30, 2022 | 176,361 | $12.39 | 3.0 | Service | ||||||||||||||||||||||
Stock Options: | ||||||||||||||||||||||||||
August 5, 2022 (3) | 4,914,868 | $5.42 | 3.0 | Service & Market |
Weighted average assumptions | |||||
Weighted average expected stock price volatility | 33.46 | % | |||
Weighted average expected dividend yield | 1.29 | % | |||
Weighted average expected life of option (in years) | 4.5 | ||||
Weighted average risk-free interest rate | 2.77 | % | |||
Weighted average grant date fair value | $5.42 | ||||
Weighted average exercise price | $15.89 |
Restricted stock and Restricted stock units | |||||||||||||||||||||||
Number of shares | Weighted-average grant date fair value | Weighted-average remaining contractual term (in years) | Aggregate intrinsic value | ||||||||||||||||||||
Balances, January 1, 2022 | 2,757,839 | $21.61 | 1.2 | $56.5 | |||||||||||||||||||
Granted | 5,581,929 | $16.34 | |||||||||||||||||||||
Forfeited | (554,590) | $18.62 | |||||||||||||||||||||
Vested | (943,690) | $21.77 | |||||||||||||||||||||
Balances, September 30, 2022 | 6,841,488 | $17.51 | 1.4 | $84.8 |
Stock options | |||||||||||||||||||||||
Number of options | Weighted-average exercise price | Weighted-average remaining contractual term (in years) | Aggregate intrinsic value | ||||||||||||||||||||
Balances, January 1, 2022 | 6,380,000 | $22.00 | 5.5 | $— | |||||||||||||||||||
Granted | 4,914,868 | $15.89 | |||||||||||||||||||||
Forfeited | (200,000) | $22.00 | |||||||||||||||||||||
Vested | — | $— | |||||||||||||||||||||
Balances, September 30, 2022 | 11,094,868 | $19.29 | 7.0 | $— |
Incentive units (1) | |||||||||||||||||||||||
Number of incentive units | Weighted-average grant date fair value | Weighted-average remaining contractual term (in years) | Aggregate intrinsic value | ||||||||||||||||||||
Balances, January 1, 2022 | 3,826,569 | $2.95 | 0.2 | $78.4 | |||||||||||||||||||
Distributed | (3,786,486) | $2.96 | |||||||||||||||||||||
Forfeited | (13,703) | $2.59 | |||||||||||||||||||||
Balances, September 30, 2022 | 26,380 | $2.59 | 0.1 | $0.3 |
Equity-based compensation: | Unrecognized compensation | Weighted-average amortization period (in years) | |||||||||
Restricted stock & Restricted stock units | $ | 90.2 | 2.3 | ||||||||
Stock options | 26.8 | 2.6 | |||||||||
Incentive units (1) | — | 0.1 | |||||||||
Total unrecognized compensation expense | $ | 117.0 | 2.5 |
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) | ||||||||||||||||||
Weighted average number of shares outstanding-basic | 429,209,862 | 428,634,355 | 429,043,929 | 428,674,777 | ||||||||||||||||||||||
Weighted average number of shares outstanding-diluted (1) | 429,426,048 | 428,726,126 | 429,043,929 | 428,674,777 | ||||||||||||||||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||||||||||||
Basic | $ | 0.02 | $ | 0.04 | $ | (0.06) | $ | (0.14) | ||||||||||||||||||
Diluted | $ | 0.02 | $ | 0.04 | $ | (0.06) | $ | (0.14) |
Common Shares | Treasury Shares (1) | Common Shares Outstanding | ||||||||||||||||||
Shares as of December 31, 2021 | 432,070,999 | (873,217) | 431,197,782 | |||||||||||||||||
Shares issued for the three months ended March 31, 2022 | 3,172,434 | N/A | 3,172,434 | |||||||||||||||||
Shares forfeited for the three months ended March 31, 2022 | (255,153) | N/A | (255,153) | |||||||||||||||||
Shares as of March 31, 2022 | 434,988,280 | (873,217) | 434,115,063 | |||||||||||||||||
Shares issued for the three months ended June 30, 2022 | 136,398 | N/A | 136,398 | |||||||||||||||||
Shares forfeited for the three months ended June 30, 2022 | (314,864) | N/A | (314,864) | |||||||||||||||||
Shares as of June 30, 2022 | 434,809,814 | (873,217) | 433,936,597 | |||||||||||||||||
Shares issued for the three months ended September 30, 2022 | 2,012,537 | N/A | 2,012,537 | |||||||||||||||||
Shares forfeited for the three months ended September 30, 2022 | (203,060) | (13,703) | (216,763) | |||||||||||||||||
Shares as of September 30, 2022 | 436,619,291 | (886,920) | 435,732,371 |
Asset derivatives | Liability derivatives | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Balance sheet location | Fair value | Balance sheet location | Fair value | Balance sheet location | Fair value | Balance sheet location | Fair value | ||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge derivative: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate Swaps | Swap derivative assets | $ | 69.4 | Swap derivative assets | $ | 10.1 | Other accrued & current liabilities | $ | — | Other accrued & current liabilities | $ | — | |||||||||||||||||||||||||||||||||||
Net investment hedge derivative: | |||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | Swap derivative assets | 9.8 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments: | $ | 79.2 | $ | 10.1 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | 5.6 | Other current assets | $ | 1.9 | Other accrued & current liabilities | $ | 2.1 | Other accrued & current liabilities | $ | 0.7 | |||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments: | $ | 5.6 | $ | 1.9 | $ | 2.1 | $ | 0.7 | |||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 84.8 | $ | 12.0 | $ | 2.1 | $ | 0.7 |
Amount of pre-tax gain or (loss) recognized in OCI on derivative | Amount of gain or (loss) reclassified from accumulated OCI into income | Amount of gain or (loss) recognized in income on derivative | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | 2022 | 2021 | Location of gain or (loss) reclassified from accumulated OCI into income | 2022 | 2021 | Location of gain or (loss) recognized in income on derivative | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge derivative: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 17.0 | $ | (0.2) | Interest expense | $ | 4.8 | $ | (0.9) | Interest expense | $ | 4.8 | $ | (0.9) | ||||||||||||||||||||||||||||||||||||
Net investment hedge derivative: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | $ | 22.4 | $ | — | $ | — | $ | — | $ | — | $ | — |
Amount of pre-tax gain or (loss) recognized in OCI on derivative | Amount of gain or (loss) reclassified from accumulated OCI into income | Amount of gain or (loss) recognized in income on derivative | ||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | 2022 | 2021 | Location of gain or (loss) reclassified from accumulated OCI into income | 2022 | 2021 | Location of gain or (loss) recognized in income on derivative | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge derivative | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 59.3 | $ | 1.4 | Interest expense | $ | 3.9 | $ | (2.4) | Interest expense | $ | 3.9 | $ | (2.4) | ||||||||||||||||||||||||||||||||||||
Net investment hedge derivative | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | $ | 29.9 | $ | — | $ | — | $ | — | $ | — | $ | — |
Amount of gain (loss) recognized in income on derivatives | ||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of gain or (loss) recognized in income on derivatives | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||
Foreign exchange collar | Non-operating income (expense) – net | $ | — | $ | — | $ | — | $ | (2.5) | |||||||||||||||||||||||
Foreign exchange forward contracts | Non-operating income (expense) – net | $ | (14.4) | $ | (3.6) | $ | (29.3) | $ | (2.1) |
Quoted prices in active markets for identical assets (level I) | Significant other observable inputs (level II) | Significant unobservable inputs (level III) | Balance at September 30, 2022 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents (1) | $ | 0.8 | $ | — | $ | — | $ | 0.8 | |||||||||||||||
Other current assets: | |||||||||||||||||||||||
Foreign exchange forwards (2) | $ | — | $ | 5.6 | $ | — | $ | 5.6 | |||||||||||||||
Swap arrangements (3) | $ | — | $ | 79.2 | $ | — | $ | 79.2 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Other accrued and current liabilities: | |||||||||||||||||||||||
Foreign exchange forwards (2) | $ | — | $ | 2.1 | $ | — | $ | 2.1 |
Quoted prices in active markets for identical assets (level I) | Significant other observable inputs (level II) | Significant unobservable inputs (level III) | Balance at December 31, 2021 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents (1) | $ | 1.7 | $ | — | $ | — | $ | 1.7 | |||||||||||||||
Other current assets: | |||||||||||||||||||||||
Foreign exchange forwards (2) | $ | — | $ | 1.9 | $ | — | $ | 1.9 | |||||||||||||||
Swap arrangements (3) | $ | — | $ | 10.1 | $ | — | $ | 10.1 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Other accrued and current liabilities: | |||||||||||||||||||||||
Foreign exchange forwards (2) | $ | — | $ | 0.7 | $ | — | $ | 0.7 |
Balance at | |||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying amount | Fair value | Carrying amount | Fair value | ||||||||||||||||||||
Long-term debt (1) | $ | 453.8 | $ | 375.2 | $ | 866.4 | $ | 924.5 | |||||||||||||||
Revolving facility | $ | 46.2 | $ | 47.1 | $ | 160.0 | $ | 162.7 | |||||||||||||||
Term loans (2) | $ | 3,084.8 | $ | 3,204.8 | $ | 2,718.4 | $ | 2,840.7 |
Foreign currency translation adjustments | Net investment hedge derivative | Defined benefit pension plans | Cash flow hedge derivative | Total | ||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | 26.2 | $ | — | $ | (120.3) | $ | (0.4) | $ | (94.5) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (64.8) | — | 0.1 | (1.1) | (65.8) | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | — | — | 1.1 | 1.8 | 2.9 | |||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | (38.6) | $ | — | $ | (119.1) | $ | 0.3 | $ | (157.4) | ||||||||||||||||||||||
Balance, January 1, 2022 | $ | (52.6) | $ | — | $ | (11.9) | $ | 7.4 | $ | (57.1) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (212.8) | 21.9 | — | 46.2 | (144.7) | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | — | — | (0.2) | (2.8) | (3.0) | |||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | (265.4) | $ | 21.9 | $ | (12.1) | $ | 50.8 | $ | (204.8) |
Amount reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Details about accumulated other comprehensive income (loss) components | Affected line item in the statement where net income (loss) is presented | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||
Defined benefit pension plans: | ||||||||||||||||||||||||||||||||
Amortization of prior service costs | Other income (expense) - net | $ | (0.1) | $ | (0.1) | $ | (0.3) | $ | (0.3) | |||||||||||||||||||||||
Amortization of actuarial gain/loss | Other income (expense) - net | — | 0.6 | — | 1.7 | |||||||||||||||||||||||||||
Cash flow hedge derivative: | ||||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense | (4.8) | 0.9 | (3.9) | 2.4 | |||||||||||||||||||||||||||
Total before tax | (4.9) | 1.4 | (4.2) | 3.8 | ||||||||||||||||||||||||||||
Tax benefit (expense) | 1.4 | (0.4) | 1.2 | (0.9) | ||||||||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | (3.5) | $ | 1.0 | $ | (3.0) | $ | 2.9 | ||||||||||||||||||||||||
Weighted average amortization period (years) | Initial purchase price allocation at December 31, 2021 | Measurement Period Adjustments | Preliminary Purchase Price Allocation at September 30, 2022 | |||||||||||||||||||||||
Cash | $ | 7.1 | $ | — | $ | 7.1 | ||||||||||||||||||||
Accounts receivable | 9.3 | — | 9.3 | |||||||||||||||||||||||
Other | 0.5 | — | 0.5 | |||||||||||||||||||||||
Total current assets | 16.9 | — | 16.9 | |||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||
Customer relationships | 14 | 20.0 | — | 20.0 | ||||||||||||||||||||||
Technology | 5 | 14.0 | — | 14.0 | ||||||||||||||||||||||
Trademark | 2 | 1.0 | 1.0 | |||||||||||||||||||||||
Goodwill | Indefinite | 138.3 | (0.1) | 138.2 | ||||||||||||||||||||||
Total assets acquired | $ | 190.2 | $ | (0.1) | $ | 190.1 | ||||||||||||||||||||
Deferred tax liability | $ | 5.9 | $ | — | $ | 5.9 | ||||||||||||||||||||
Other liabilities | 12.0 | (0.2) | 11.8 | |||||||||||||||||||||||
Total liabilities assumed | $ | 17.9 | $ | (0.2) | $ | 17.7 | ||||||||||||||||||||
Total purchase price | $ | 172.3 | $ | 0.1 | $ | 172.4 |
Weighted average amortization period (years) | Initial purchase price allocation at December 31, 2021 | Measurement Period Adjustments | Preliminary Purchase Price Allocation at September 30, 2022 | |||||||||||||||||||||||
Cash | $ | 2.6 | $ | — | $ | 2.6 | ||||||||||||||||||||
Accounts receivable | 2.6 | — | 2.6 | |||||||||||||||||||||||
Other | 0.4 | — | 0.4 | |||||||||||||||||||||||
Total current assets | 5.6 | — | 5.6 | |||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||
Customer relationships | 15 | 19.8 | — | 19.8 | ||||||||||||||||||||||
Technology | 5 | 1.3 | — | 1.3 | ||||||||||||||||||||||
Trademark | 2 | 0.2 | — | 0.2 | ||||||||||||||||||||||
Database | 3 | 2.2 | — | 2.2 | ||||||||||||||||||||||
Goodwill | Indefinite | 41.9 | 3.6 | 45.5 | ||||||||||||||||||||||
Total assets acquired | $ | 71.0 | $ | 3.6 | $ | 74.6 | ||||||||||||||||||||
Total liabilities assumed | 1.2 | 3.2 | 4.4 | |||||||||||||||||||||||
Total purchase price | $ | 69.8 | $ | 0.4 | $ | 70.2 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||
2021 | 2021 | ||||||||||
Reported revenue | $ | 541.9 | $ | 1,567.3 | |||||||
Pro forma adjustments: | |||||||||||
Pre-acquisition revenue: | |||||||||||
Bisnode | — | 4.6 | |||||||||
Eyeota | 10.8 | 27.3 | |||||||||
NetWise | 2.6 | 7.1 | |||||||||
Total pro forma revenue | $ | 555.3 | $ | 1,606.3 | |||||||
Reported net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $ | 16.6 | $ | (60.1) | |||||||
Pro forma adjustments - net of tax effect: | |||||||||||
Pre-acquisition net income: | |||||||||||
Bisnode | — | 0.8 | |||||||||
Eyeota | 0.5 | (0.7) | |||||||||
NetWise | 0.3 | 1.1 | |||||||||
Intangible amortization - net of tax benefits | (2.2) | (5.7) | |||||||||
Write off related to pre-existing relationship - net of tax benefits | — | 2.3 | |||||||||
Transaction costs - net of tax benefits | — | 0.3 | |||||||||
Pro forma net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $ | 15.2 | $ | (62.0) |
Computer software | Goodwill | |||||||||||||
January 1, 2021 | $ | 437.0 | $ | 2,857.9 | ||||||||||
Acquisition (1) | 65.0 | 488.4 | ||||||||||||
Additions at cost (2) | 42.2 | — | ||||||||||||
Amortization | (24.5) | — | ||||||||||||
Write-off | (3.1) | — | ||||||||||||
Other (3) | (8.5) | (28.1) | ||||||||||||
March 31, 2021 | $ | 508.1 | $ | 3,318.2 | ||||||||||
Acquisition (3) | (1.0) | 2.6 | ||||||||||||
Additions at cost (2) | 33.9 | — | ||||||||||||
Amortization | (26.6) | — | ||||||||||||
Write-off | (0.7) | — | ||||||||||||
Other (3) | 2.8 | 10.3 | ||||||||||||
June 30, 2021 | $ | 516.5 | $ | 3,331.1 | ||||||||||
Additions at cost (2) | 46.0 | — | ||||||||||||
Amortization | (30.7) | — | ||||||||||||
Write-off | (0.4) | — | ||||||||||||
Other (3) | (5.8) | (12.4) | ||||||||||||
September 30, 2021 | $ | 525.6 | $ | 3,318.7 | ||||||||||
January 1, 2022 | $ | 557.4 | $ | 3,493.3 | ||||||||||
Additions at cost (2) | 43.4 | — | ||||||||||||
Amortization | (30.3) | — | ||||||||||||
Other (3) | (7.1) | (17.9) | ||||||||||||
March 31, 2022 | $ | 563.4 | $ | 3,475.4 | ||||||||||
Additions at cost (2) | 61.9 | — | ||||||||||||
Amortization | (31.8) | — | ||||||||||||
Other (3) | (14.6) | (38.3) | ||||||||||||
June 30, 2022 | $ | 578.9 | $ | 3,437.1 | ||||||||||
Additions at cost (2) | 57.3 | — | ||||||||||||
Amortization | (30.7) | — | ||||||||||||
Write-off | (1.1) | — | ||||||||||||
Other (3) | (15.7) | (36.3) | ||||||||||||
September 30, 2022 | $ | 588.7 | $ | 3,400.8 |
Customer relationships | Reacquired rights | Database | Other indefinite-lived intangibles | Other intangibles | Total | |||||||||||||||||||||||||||||||||
January 1, 2021 | $ | 1,912.9 | $ | — | $ | 1,369.4 | $ | 1,275.8 | $ | 256.7 | $ | 4,814.8 | ||||||||||||||||||||||||||
Acquisition (1) | 106.0 | 271.0 | 116.0 | — | — | 493.0 | ||||||||||||||||||||||||||||||||
Additions at cost | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||
Amortization | (65.6) | (5.0) | (47.8) | — | (4.0) | (122.4) | ||||||||||||||||||||||||||||||||
WWN relationship transfer (4) | — | 64.7 | — | — | (64.7) | — | ||||||||||||||||||||||||||||||||
Other (3) | (5.4) | (14.3) | (6.3) | — | (1.9) | (27.9) | ||||||||||||||||||||||||||||||||
March 31, 2021 | $ | 1,947.9 | $ | 316.4 | $ | 1,431.3 | $ | 1,275.8 | $ | 186.3 | $ | 5,157.7 | ||||||||||||||||||||||||||
Acquisitions (1) | 2.0 | (1.0) | (5.0) | — | — | (4.0) | ||||||||||||||||||||||||||||||||
Additions at cost | — | — | — | — | 7.3 | 7.3 | ||||||||||||||||||||||||||||||||
Amortization | (64.5) | (7.4) | (47.0) | — | (4.0) | (122.9) | ||||||||||||||||||||||||||||||||
Other (3) | 2.5 | 4.1 | 2.4 | — | 0.2 | 9.2 | ||||||||||||||||||||||||||||||||
June 30, 2021 | $ | 1,887.9 | $ | 312.1 | $ | 1,381.7 | $ | 1,275.8 | $ | 189.8 | $ | 5,047.3 | ||||||||||||||||||||||||||
Additions at cost | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||
Amortization | (64.3) | (7.2) | (46.9) | — | (4.2) | (122.6) | ||||||||||||||||||||||||||||||||
Other (3) | (3.4) | (7.3) | (2.4) | — | (1.9) | (15.0) | ||||||||||||||||||||||||||||||||
September 30, 2021 | $ | 1,820.2 | $ | 297.6 | $ | 1,332.4 | $ | 1,275.8 | $ | 183.9 | $ | 4,909.9 | ||||||||||||||||||||||||||
January 1, 2022 | $ | 1,793.3 | $ | 284.7 | $ | 1,285.1 | $ | 1,280.0 | $ | 181.4 | $ | 4,824.5 | ||||||||||||||||||||||||||
Additions at cost | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||
Amortization | (61.9) | (5.1) | (44.6) | — | (4.2) | (115.8) | ||||||||||||||||||||||||||||||||
Other (3) | (4.7) | (7.9) | (4.6) | — | (2.0) | (19.2) | ||||||||||||||||||||||||||||||||
March 31, 2022 | $ | 1,726.7 | $ | 271.7 | $ | 1,235.9 | $ | 1,280.0 | $ | 175.4 | $ | 4,689.7 | ||||||||||||||||||||||||||
Additions at cost | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||
Amortization | (59.7) | (4.7) | (43.2) | — | (4.4) | (112.0) | ||||||||||||||||||||||||||||||||
Other (3) | (9.6) | (15.7) | (5.9) | — | (5.0) | (36.2) | ||||||||||||||||||||||||||||||||
June 30, 2022 | $ | 1,657.4 | $ | 251.3 | $ | 1,186.8 | $ | 1,280.0 | $ | 166.2 | $ | 4,541.7 | ||||||||||||||||||||||||||
Additions at cost | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||
Amortization | (59.4) | (4.5) | (43.0) | — | (4.2) | (111.1) | ||||||||||||||||||||||||||||||||
Other (3) | (8.5) | (16.6) | (4.9) | — | (4.9) | (34.9) | ||||||||||||||||||||||||||||||||
September 30, 2022 | $ | 1,589.5 | $ | 230.2 | $ | 1,138.9 | $ | 1,280.0 | $ | 157.3 | $ | 4,395.9 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
North America | $ | 403.6 | $ | 374.1 | $ | 1,152.2 | $ | 1,070.7 | |||||||||||||||
International | 152.7 | 167.8 | 477.4 | 501.4 | |||||||||||||||||||
Corporate and other (1) | — | — | — | (4.8) | |||||||||||||||||||
Consolidated total | $ | 556.3 | $ | 541.9 | $ | 1,629.6 | $ | 1,567.3 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||
North America | $ | 188.4 | $ | 185.5 | $ | 503.1 | $ | 504.0 | |||||||||||||||
International | 51.6 | 54.0 | 153.2 | 148.1 | |||||||||||||||||||
Corporate and other | (17.0) | (19.1) | (43.2) | (47.7) | |||||||||||||||||||
Consolidated total | $ | 223.0 | $ | 220.4 | $ | 613.1 | $ | 604.4 | |||||||||||||||
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 taxes | 4.2 | 2.8 | 13.6 | (30.4) | |||||||||||||||||||
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) | |||||||||||||||||||
Net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $ | 8.0 | $ | 16.6 | $ | (25.1) | $ | (60.1) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||
North America | $ | 16.9 | $ | 16.6 | $ | 53.5 | $ | 43.8 | |||||||||||||||
International | 3.8 | 3.2 | 10.8 | 8.8 | |||||||||||||||||||
Total segments | 20.7 | 19.8 | 64.3 | 52.6 | |||||||||||||||||||
Corporate and other (1) | 124.4 | 136.9 | 377.2 | 406.1 | |||||||||||||||||||
Consolidated total | $ | 145.1 | $ | 156.7 | $ | 441.5 | $ | 458.7 | |||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
North America (2) | $ | 1.5 | $ | 2.8 | $ | 7.3 | $ | 81.1 | |||||||||||||||
International | 1.1 | 1.4 | 2.8 | 3.6 | |||||||||||||||||||
Total segments | 2.6 | 4.2 | 10.1 | 84.7 | |||||||||||||||||||
Corporate and other | 0.1 | — | 0.1 | 0.1 | |||||||||||||||||||
Consolidated total | $ | 2.7 | $ | 4.2 | $ | 10.2 | $ | 84.8 | |||||||||||||||
Additions to computer software and other intangibles: | |||||||||||||||||||||||
North America (3) | $ | 39.4 | $ | 30.3 | $ | 112.5 | $ | 92.7 | |||||||||||||||
International | 9.2 | 5.2 | 23.5 | 18.9 | |||||||||||||||||||
Total segments | 48.6 | 35.5 | 136.0 | 111.6 | |||||||||||||||||||
Corporate and other | 2.7 | 0.3 | 7.0 | 0.7 | |||||||||||||||||||
Consolidated total | $ | 51.3 | $ | 35.8 | $ | 143.0 | $ | 112.3 |
September 30, 2022 | December 31, 2021 | ||||||||||
Assets: | |||||||||||
North America | $ | 7,938.0 | $ | 8,232.2 | |||||||
International | 1,491.7 | 1,765.0 | |||||||||
Consolidated total | $ | 9,429.7 | $ | 9,997.2 | |||||||
Goodwill: | |||||||||||
North America | $ | 2,929.1 | $ | 2,928.4 | |||||||
International | 471.7 | 564.9 | |||||||||
Consolidated total | $ | 3,400.8 | $ | 3,493.3 | |||||||
Other intangibles: | |||||||||||
North America | $ | 3,900.1 | $ | 4,186.2 | |||||||
International | 495.8 | 638.3 | |||||||||
Consolidated total | $ | 4,395.9 | $ | 4,824.5 | |||||||
Other long-lived assets (excluding deferred income tax): | |||||||||||
North America | $ | 745.1 | $ | 713.4 | |||||||
International | 207.6 | 229.5 | |||||||||
Consolidated total | $ | 952.7 | $ | 942.9 | |||||||
Total long-lived assets | $ | 8,749.4 | $ | 9,260.7 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
Customer Solution Set Revenue: | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
North America (1): | |||||||||||||||||||||||
Finance & Risk | $ | 224.1 | $ | 214.0 | $ | 635.8 | $ | 604.2 | |||||||||||||||
Sales & Marketing | 179.5 | 160.1 | 516.4 | 466.5 | |||||||||||||||||||
Total North America | $ | 403.6 | $ | 374.1 | $ | 1,152.2 | $ | 1,070.7 | |||||||||||||||
International: | |||||||||||||||||||||||
Finance & Risk | $ | 102.2 | $ | 108.7 | $ | 313.1 | $ | 320.1 | |||||||||||||||
Sales & Marketing | 50.5 | 59.1 | 164.3 | 181.3 | |||||||||||||||||||
Total International | $ | 152.7 | $ | 167.8 | $ | 477.4 | $ | 501.4 | |||||||||||||||
Corporate and other: | |||||||||||||||||||||||
Finance & Risk | $ | — | $ | — | $ | — | $ | (2.3) | |||||||||||||||
Sales & Marketing | — | — | — | (2.5) | |||||||||||||||||||
Total Corporate and other | $ | — | $ | — | $ | — | $ | (4.8) | |||||||||||||||
Total Revenue: | |||||||||||||||||||||||
Finance & Risk | $ | 326.3 | $ | 322.7 | $ | 948.9 | $ | 922.0 | |||||||||||||||
Sales & Marketing | 230.0 | 219.2 | 680.7 | 645.3 | |||||||||||||||||||
Total Revenue | $ | 556.3 | $ | 541.9 | $ | 1,629.6 | $ | 1,567.3 |
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 | |||||||||||||||||||
Net income (loss) margin (1) | 1.4 | % | 3.1 | % | (1.5) | % | (3.8) | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Non - GAAP Financial Measures | |||||||||||||||||||||||
Adjusted revenue (a) | $ | 556.3 | $ | 541.9 | $ | 1,629.6 | $ | 1,571.9 | |||||||||||||||
Organic revenue (a) | $ | 562.9 | $ | 541.6 | $ | 1,628.4 | $ | 1,565.3 | |||||||||||||||
Adjusted EBITDA (a) | $ | 223.0 | $ | 220.4 | $ | 613.1 | $ | 604.4 | |||||||||||||||
Adjusted EBITDA margin (a) | 40.1 | % | 40.7 | % | 37.6 | % | 38.5 | % | |||||||||||||||
Adjusted net income (a) | $ | 123.4 | $ | 123.4 | $ | 333.2 | $ | 329.2 | |||||||||||||||
Adjusted earnings per share (a) | $ | 0.29 | $ | 0.29 | $ | 0.78 | $ | 0.77 | |||||||||||||||
(a) Including impact of deferred revenue purchase accounting adjustments: | |||||||||||||||||||||||
Impact to adjusted revenue, organic revenue and adjusted EBITDA | $ | — | $ | — | $ | — | $ | (0.2) | |||||||||||||||
Impact to adjusted EBITDA margin | — | % | — | % | — | % | — | % | |||||||||||||||
Net impact to adjusted net income | $ | — | $ | — | $ | — | $ | (0.2) | |||||||||||||||
Net impact to adjusted earnings per share | $ | — | $ | — | $ | — | $ | — |
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) |
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 | |||||||||||||||
(a) Including impact of deferred revenue purchase accounting adjustments: | |||||||||||||||||||||||
Impact to adjusted EBITDA | $ | — | $ | — | $ | — | $ | (0.2) |
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 to adjusted net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $ | — | $ | — | $ | — | $ | (0.2) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Increase (decrease) | % Increase (decrease) | 2022 | 2021 | $ Increase (decrease) | % Increase (decrease) | ||||||||||||||||||||||||||||||||||||||||
North America: | |||||||||||||||||||||||||||||||||||||||||||||||
Finance & Risk | $ | 224.1 | $ | 214.0 | $ | 10.1 | 4.7 | % | $ | 635.8 | $ | 604.2 | $ | 31.6 | 5.2 | % | |||||||||||||||||||||||||||||||
Sales & Marketing | 179.5 | 160.1 | 19.4 | 12.1 | % | 516.4 | 466.5 | 49.9 | 10.7 | % | |||||||||||||||||||||||||||||||||||||
Total North America | $ | 403.6 | $ | 374.1 | $ | 29.5 | 7.9 | % | $ | 1,152.2 | $ | 1,070.7 | $ | 81.5 | 7.6 | % | |||||||||||||||||||||||||||||||
International: | |||||||||||||||||||||||||||||||||||||||||||||||
Finance & Risk | $ | 102.2 | $ | 108.7 | $ | (6.5) | (6.0) | % | $ | 313.1 | $ | 320.1 | $ | (7.0) | (2.2) | % | |||||||||||||||||||||||||||||||
Sales & Marketing | 50.5 | 59.1 | (8.6) | (14.4) | % | 164.3 | 181.3 | (17.0) | (9.3) | % | |||||||||||||||||||||||||||||||||||||
Total International | $ | 152.7 | $ | 167.8 | $ | (15.1) | (9.0) | % | $ | 477.4 | $ | 501.4 | $ | (24.0) | (4.8) | % | |||||||||||||||||||||||||||||||
Corporate and other: | |||||||||||||||||||||||||||||||||||||||||||||||
Finance & Risk | $ | — | $ | — | $ | — | ** | $ | — | $ | (2.3) | $ | 2.3 | ** | |||||||||||||||||||||||||||||||||
Sales & Marketing | — | — | — | ** | — | (2.5) | 2.5 | ** | |||||||||||||||||||||||||||||||||||||||
Total Corporate and other (1) | $ | — | $ | — | $ | — | ** | $ | — | $ | (4.8) | $ | 4.8 | ** | |||||||||||||||||||||||||||||||||
Total Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Finance & Risk | $ | 326.3 | $ | 322.7 | $ | 3.6 | 1.1 | % | $ | 948.9 | $ | 922.0 | $ | 26.9 | 2.9 | % | |||||||||||||||||||||||||||||||
Sales & Marketing | 230.0 | 219.2 | 10.8 | 5.0 | % | 680.7 | 645.3 | 35.4 | 5.5 | % | |||||||||||||||||||||||||||||||||||||
Total Revenue | $ | 556.3 | $ | 541.9 | $ | 14.4 | 2.7 | % | $ | 1,629.6 | $ | 1,567.3 | $ | 62.3 | 4.0 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Increase (decrease) | % Increase (decrease) | 2022 | 2021 | $ Increase (decrease) | % Increase (decrease) | ||||||||||||||||||||||||||||||||||||||||
Cost of services (exclusive of depreciation and amortization) | $ | 175.0 | $ | 159.4 | $ | 15.6 | 9.8 | % | $ | 533.3 | $ | 487.6 | $ | 45.7 | 9.4 | % | |||||||||||||||||||||||||||||||
Selling and administrative expenses | 184.1 | 171.5 | 12.6 | 7.4 | % | 548.9 | 515.6 | 33.3 | 6.5 | % | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 145.1 | 156.7 | (11.6) | (7.4) | % | 441.5 | 458.7 | (17.2) | (3.7) | % | |||||||||||||||||||||||||||||||||||||
Restructuring charges | 6.6 | 4.8 | 1.8 | 39.2 | % | 14.3 | 20.7 | (6.4) | (30.8) | % | |||||||||||||||||||||||||||||||||||||
Operating costs | $ | 510.8 | $ | 492.4 | $ | 18.4 | 3.8 | % | $ | 1,538.0 | $ | 1,482.6 | $ | 55.4 | 3.7 | % | |||||||||||||||||||||||||||||||
Operating income (loss) | $ | 45.5 | $ | 49.5 | $ | (4.0) | (8.2) | % | $ | 91.6 | $ | 84.7 | $ | 6.9 | 8.0 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 0.5 | $ | 0.2 | $ | 0.3 | 150.0 | % | $ | 1.1 | $ | 0.5 | $ | 0.6 | 120.0 | % | |||||||||||||||||||||||||||||||
Interest expense | (49.1) | (48.3) | (0.8) | (1.7) | % | (138.2) | (145.2) | 7.0 | 4.8 | % | |||||||||||||||||||||||||||||||||||||
Interest income (expense) – net | $ | (48.6) | $ | (48.1) | $ | (0.5) | (1.0) | % | $ | (137.1) | $ | (144.7) | $ | 7.6 | 5.3 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
Non-operating pension income (expense) | $ | 10.9 | $ | 13.3 | $ | (2.4) | (18) | % | $ | 33.3 | $ | 40.4 | $ | (7.1) | (18) | % | |||||||||||||||||||||||||||||||
Early debt redemption premium | — | — | — | NA | (16.3) | — | $ | (16.3) | NA | ||||||||||||||||||||||||||||||||||||||
Miscellaneous other income (expense) – net | (2.1) | — | (2.1) | NA | (6.3) | (7.9) | 1.6 | 20 | % | ||||||||||||||||||||||||||||||||||||||
Other income (expense) – net | $ | 8.8 | $ | 13.3 | $ | (4.5) | (34) | % | $ | 10.7 | $ | 32.5 | $ | (21.8) | (67) | % |
Nine months ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by (used in) operating activities | $ | 439.8 | $ | 401.2 | |||||||
Net cash provided by (used in) investing activities | (165.9) | (790.7) | |||||||||
Net cash provided by (used in) financing activities | (218.2) | 274.1 | |||||||||
Total cash provided during the period before the effect of exchange rate changes | $ | 55.7 | $ | (115.4) |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Maturity | Principal amount | Debt issuance costs and discount | Carrying value | Principal amount | Debt issuance costs and discount | Carrying value | |||||||||||||||||||||||||||||||||||
Debt maturing within one year: | |||||||||||||||||||||||||||||||||||||||||
2026 Term loan | February 8, 2026 | $ | 28.1 | $ | — | $ | 28.1 | $ | 28.1 | $ | — | $ | 28.1 | ||||||||||||||||||||||||||||
2029 Term loan | January 18, 2029 | 4.6 | — | 4.6 | — | — | — | ||||||||||||||||||||||||||||||||||
Total short-term debt | $ | 32.7 | $ | — | $ | 32.7 | $ | 28.1 | $ | — | $ | 28.1 | |||||||||||||||||||||||||||||
Debt maturing after one year: | |||||||||||||||||||||||||||||||||||||||||
2026 Term loan | February 8, 2026 | $ | 2,658.7 | $ | 53.0 | $ | 2,605.7 | $ | 2,754.8 | $ | 64.5 | $ | 2,690.3 | ||||||||||||||||||||||||||||
2029 Term loan | January 18, 2029 | 453.1 | 6.7 | 446.4 | — | — | — | ||||||||||||||||||||||||||||||||||
Revolving facility | September 11, 2025 | 46.2 | — | 46.2 | 160.0 | — | 160.0 | ||||||||||||||||||||||||||||||||||
5.000% Senior unsecured notes | December 15, 2029 | 460.0 | 6.2 | 453.8 | 460.0 | 6.8 | 453.2 | ||||||||||||||||||||||||||||||||||
6.875% Senior secured notes | Fully paid off in January 2022 | — | — | — | 420.0 | 6.8 | 413.2 | ||||||||||||||||||||||||||||||||||
Total long-term debt | $ | 3,618.0 | $ | 65.9 | $ | 3,552.1 | $ | 3,794.8 | $ | 78.1 | $ | 3,716.7 | |||||||||||||||||||||||||||||
Total debt | $ | 3,650.7 | $ | 65.9 | $ | 3,584.8 | $ | 3,822.9 | $ | 78.1 | $ | 3,744.8 |
Exhibit Number | Description | |||||||
10.1 | ||||||||
10.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | The following materials from Dun & Bradstreet Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) (Unaudited), (ii) the Condensed Consolidated Balance Sheets (Unaudited), (iii) the Condensed Consolidated Statements of Cash Flows (Unaudited), (iv) the Condensed Consolidated Statements of Stockholder Equity (Unaudited), and (v) the Notes to the Condensed Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (embedded within the iXBRL document and contained in Exhibit 101). |
DUN & BRADSTREET HOLDINGS, INC. | |||||||||||
By: | /s/ BRYAN T. HIPSHER | ||||||||||
Bryan T. Hipsher | |||||||||||
Date: | November 3, 2022 | Chief Financial Officer | |||||||||
(Principal Financial Officer) | |||||||||||
By: | /s/ ANTHONY PIETRONTONE | ||||||||||
Anthony Pietrontone | |||||||||||
Date: | November 3, 2022 | Chief Accounting Officer | |||||||||
(Principal Accounting Officer) |