Dun & Bradstreet Corp. (NYSE:DNB) Q4 2015 Earnings Conference Call - Final Transcript

Feb 12, 2016 • 08:00 am ET


Dun & Bradstreet Corp. (NYSE:DNB) Q4 2015 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning and welcome to Dun & Bradstreet's 2015 Fourth Quarter Teleconference. This conference is being recorded at the request of Dun & Bradstreet. If you have any objections, you may disconnect at this time. [Operator Instructions]

I would now like to turn the call over to Ms. Kathy Guinnessey, Treasurer and Investor Relations Officer. Ms. Guinnessey, you may begin.

Kathy Guinnessey

Thank you. Good morning, everyone, and thank you for joining us today. With me on the call this morning are Bob Carrigan, our Chief Executive Officer; Rich Veldran, our Chief Financial Officer; and Josh Peirez, our President and Chief Operating Officer. Here's what you can expect on our call. Following my remarks, Bob will provide an overview of our 2015 results and an update on our strategy, including our outlook for 2016. Then, Rich will come on to take you through the highlights of the fourth quarter. And after that, we'll open the call for your questions.

To help our analysts and investors to understand how we view the business, our remarks this morning will include forward-looking statements. Our Form 10-K and 10-Q filings as well as the earnings release we issued yesterday highlight a number of important risk factors that could cause our actual results to differ from these forward-looking statements. These documents are available on the Investor Relations section of our website, and we encourage you to review the material. We undertake no obligation to update any forward-looking statements.

So from time-to-time we may refer to sales, which we define as the value of committed customer contracts. This term is often referred to as bookings or commitments by other companies. In addition, we speak from time-to-time about deferred revenue. As a reminder, deferred revenue is a liability that refers to revenue that has not yet been earned and represents products and services that are owed to our customers. As the products and services are delivered over time, it is recognized as revenue on the income statement. Deferred revenue is important to management, because it provides insight into the health of our future revenues. When we refer to the change in deferred revenue, we mean before foreign exchange and acquisitions unless otherwise noted.

During our call today, we will be discussing a number of non-GAAP financial measures, which we call as-adjusted results, as that's how we manage the business. For example, when we discuss revenue growth, we'll be referring to the non-GAAP measure revenue growth as adjusted, which is revenue adjusted to eliminate the effect on revenue due to purchase accounting fair-value adjustments to deferred revenue and also before the effect of foreign exchange. When we discuss operating income, operating margin and EPS, these will all be on a non-GAAP basis, which we call as adjusted. Additionally, our as-adjusted results exclude the results of discontinued operations.

When we discuss free cash flow, this will be on a non-GAAP basis, excluding the impact of legacy tax matters, potential regulatory fines associated with the ongoing China investigation, and potential payments for legal