[TEXT]
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X)Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 1994
--------------
OR
( )Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from __________ to _________
Commission file Number 1-7155
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The Dun & Bradstreet Corporation
(Exact name of registrant as specified in its charter)
Delaware 13-2740040
(State of Incorporation) (I.R.S. Employer
Identification No.)
200 Nyala Farms, Westport, CT 06880
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(203) 222-4200
Indicate by check mark whether the registrant(1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
Shares Outstanding
Title of Class at April 29, 1994
______________ ___________________
Common Stock,
par value $1 per share 170,042,876
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THE DUN & BRADSTREET CORPORATION
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
<CAPTION>
<S> <C>
Condensed Consolidated Statement of Income (Unaudited) 3
Three Months Ended March 31, 1994 and 1993
Condensed Consolidated Statement of Cash Flows (Unaudited) 4
Three Months Ended March 31, 1994 and 1993
Condensed Consolidated Statement of Financial Position (Unaudited) 5
March 31 1994 and December 31, 1993
Notes to Condensed Consolidated Financial Statements (Unaudited) 6-9
Item 2. Management's Discussion and Analysis of Financial 9-12
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
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Part l. FINANCIAL INFORMATION
______________________________
Item l. FINANCIAL STATEMENTS
THE DUN & BRADSTREET CORPORATION
Condensed Consolidated Statement of Income (Unaudited)
(In thousands except per share amounts)
<CAPTION>
Three Months Ended
March 31
________________________
1994 1993
________________________
<S> <C> <C>
Operating Revenue $1,099,225 $1,071,405
Operating Costs, Selling and
Administrative Expenses 939,406 930,917
__________ __________
Operating Income 159,819 140,488
Interest Income - Net 3,970 5,580
Other (Expense) Income - Net (11,959) 824
__________ __________
Non-Operating (Expense) Income - Net (7,989) 6,404
Income Before Provision for Taxes and Cumulative
Effect of Changes in Accounting Principles 151,830 146,892
Provision for Income Taxes 43,120 41,717
__________ __________
Income Before Cumulative Effect of Changes in
Accounting Principles 108,710 105,175
Cumulative Effect to January 1, 1993, of Changes
in Accounting Principles:
-SFAS No. 106, "Employers' Accounting for
Postretirement Benefits Other Than Pensions,"
Net of Income Tax Benefits of $93,730 - (140,596)
-SFAS No. 112, "Employers' Accounting for
Postemployment Benefits," Net of Income Tax
Benefits of $150,000 - (250,000)
__________ __________
Net Income (Loss) $108,710 $(285,421)
========== ==========
Earnings Per Share of Common Stock:
Before Cumulative Effect of Changes in
Accounting Principles $0.64 $0.59
-SFAS No. 106, "Employers' Accounting for
Postretirement Benefits Other Than Pensions," - (0.79)
-SFAS No. 112, "Employers' Accounting for
Postemployment Benefits," - (1.40)
__________ __________
Net Income (Loss) $0.64 $(1.60)
========== ==========
Dividends Paid Per Share of Common Stock $0.61 $0.57
========== ==========
Average Number of Shares Outstanding 170,155 178,259
<FN>
See accompanying notes to the condensed consolidated financial statements
(unaudited).
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The Dun & Bradstreet Corporation
Condensed Consolidated Statement
of Cash Flows (Unaudited)
Three Months Ended March 31
1994 1993
(Amounts in thousands)
___________________________________________________________________________
<CAPTION>
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) $108,710 $(285,421)
Reconciliation of Net Income(Loss) to Net Cash
Provided by Operating Activities:
Cumulative Effect of Changes in Accounting Principles:
Postretirement benefits other than pensions 0 140,596
Postemployment benefits 0 250,000
Depreciation and Amortization 101,080 90,287
Restructuring Gain from Sale of Business (1,654) 0
Restructuring Provisions 1,654 0
Restructuring Payments (22,103) (20,837)
Postemployment Benefit Payments (40,010) 0
Net Increase in Accounts Receivable (83,379) (4,482)
Income Taxes Paid- Net of Refunds (31,709) (37,227)
Unearned Subscription Income 138,051 151,318
Net Changes in Other Working Capital Items (86,107) (76,522)
___________________________________________________________________________
Net Cash Provided by Operating Activities 84,533 207,712
___________________________________________________________________________
Cash Flows from Investing Activities:
(Payments for)Proceeds from Marketable
Securities - Net (70,296) 7,084
Payments for Acquisition of Businesses (excluding cash
and cash equivalents acquired of $813 in 1994) (31,262) 0
Capital Expenditures (72,600) (48,543)
Computer Software and Other Intangibles Additions(33,287) (36,609)
Increase in Other Investments and
Notes Receivable (25,182) (3,127)
Other (702) 10,365
___________________________________________________________________________
Net Cash Used in Investing Activities (233,329) (70,830)
___________________________________________________________________________
Cash Flows from Financing Activities:
Payment of Dividends (103,858) (101,624)
Payments for Purchase of Treasury Shares (28,740) (13,738)
Net Proceeds from Exercise of Stock Options 7,472 10,046
Increase in Domestic Short-term Borrowings 296,097 4,965
Payment of Alaska Native Corp. Obligations (166,208) 0
Other 6,825 16,872
___________________________________________________________________________
Net Cash Provided by (Used in)
Financing Activities 11,588 (83,479)
___________________________________________________________________________
Effect of Exchange Rate Changes on Cash
and Cash Equivalents 2,425 (20,025)
___________________________________________________________________________
(Decrease) Increase in Cash and
Cash Equivalents (134,783) 33,378
Cash and Cash Equivalents, Beginning of Period 650,909 494,520
___________________________________________________________________________
Cash and Cash Equivalents, End of Period $516,126 $527,898
___________________________________________________________________________
<FN>
See accompanying notes to the condensed consolidated financial statements
(unaudited).
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The Dun & Bradstreet Corporation
Condensed Consolidated Statement of Financial Position (Unaudited)
(Amounts in thousands)
<CAPTION>
___________________________________________________________________________
March 31 December 31
1994 1993
___________________________________________________________________________
<S> <C> <C>
ASSETS
Current Assets
Cash and Cash Equivalents $516,126 $650,909
Marketable Securities, interest-bearing 84,298 17,749
Accounts Receivable - Net 1,172,265 1,078,943
Other Current Assets 381,561 374,828
--------- ---------
Total Current Assets 2,154,250 2,122,429
___________________________________________________________________________
Investments
Marketable Securities, interest-bearing 125,693 106,219
Other Investments and Notes Receivable 336,850 310,585
--------- ---------
Total Investments 462,543 416,804
___________________________________________________________________________
Property, Plant and Equipment - Net 884,244 861,065
___________________________________________________________________________
Other Assets-Net
Deferred Charges $322,012 $318,469
Computer Software 293,270 294,474
Other Intangibles 216,465 214,743
Goodwill 970,653 942,378
--------- ---------
Total Other Assets-Net 1,802,400 1,770,064
___________________________________________________________________________
TOTAL ASSETS $5,303,437 $5,170,362
___________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Liabilities and Shareowners' Equity
<S> <C> <C>
Current Liabilities
Accounts and Notes Payable $686,995 $371,776
Accrued and Other Current Liabilities 1,199,590 1,561,509
Accrued Income Taxes 126,283 110,759
--------- ---------
Total Current Liabilities 2,012,868 2,044,044
___________________________________________________________________________
Unearned Subscription Income 401,609 263,686
Postretirement and Postemployment Benefits 552,088 545,661
Deferred Income Taxes 84,405 85,850
Other Liabilities and Minority Interests 1,145,992 1,119,805
___________________________________________________________________________
TOTAL LIABILITIES $4,196,962 $4,059,046
___________________________________________________________________________
Shareowners' Equity $1,106,475 $1,111,316
___________________________________________________________________________
TOTAL LIABILITIES AND SHAREOWNERS' EQUITY $5,303,437 $5,170,362
___________________________________________________________________________
<FN>
See accompanying notes to the condensed consolidated financial statements
(unaudited).
-5-
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<PAGE>
[TEXT]
THE DUN & BRADSTREET CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)
Note 1 - Interim Consolidated Financial Statements
These interim consolidated financial statements have been prepared in
accordance with the instructions to Form 10-Q and should be read in
conjunction with the consolidated financial statements and related notes
of The Dun & Bradstreet Corporation (the "Company" or "D&B") 1993 Annual
Report on Form 10-K. In the opinion of management, all adjustments
(consisting of normal recurring accruals), considered necessary for a
fair presentation of financial position, results of operations and cash
flows at the dates and for the periods presented have been included.
Note 2 - Change in Accounting for Marketable Securities
Effective January 1, 1994, the Company adopted the provisions of
Statement of Financial Accounting Standards (SFAS) No. 115, "Accounting
for Certain Investments in Debt and Equity Securities." This Statement
expands the use of fair value accounting for certain marketable
securities and requires additional financial statement disclosures. At
January 1, 1994, all marketable securities were classified as "available
for sale" and, therefore, are reported at fair value, with net
unrealized gains and losses reported in shareowners' equity. Prior to
January 1, 1994, marketable securities, consisting principally of fixed
income securities, were carried at amortized cost. Adoption of SFAS No.
115 did not have a material effect on the Company's consolidated
financial statements.
Disclosures below include amounts classified in the condensed
consolidated statement of financial condition as marketable securities,
as well as assets of grantor trusts established to pay benefits for
U.S. supplemental pension plans and certain marketable securities
included in other investments and notes receivable. Cash equivalents
of $177.8 million and $149.2 million at March 31, 1994 and
December 31, 1993, respectively, represent marketable securities
purchased within 90 days of maturity date, for which book value,
including accrued interest, approximates fair value. Cash equivalents
have been excluded from these disclosures.
A summary of cost and fair values follows (in millions of dollars):
March 31, 1994 December 31, 1993
Fair Fair
Cost Value Cost Value
----- ------ ----- -------
Equity securities $19.5 $19.8 $11.6 $11.7
Debt securities of the U.S.
Government and its agencies 63.6 65.0 63.2 67.4
Debt securities of states and other
subdivisions of the U.S. Government 96.7 96.7 85.8 89.6
Debt securities of foreign
governments 26.6 26.6 9.9 10.3
Corporate debt securities 62.8 62.6 19.6 19.7
Other 7.8 7.7 0.2 0.2
----- ------ ----- -------
$277.0 $278.4 $190.3 $198.9
====== ====== ====== ======
At March 31, 1994, gross unrealized gains and losses were $5.2 million
and $3.8 million, respectively. At December 31, 1993, gross unrealized
gains and losses were $9.1 million and $0.5 million, respectively.
-6-
<PAGE>
At March 31, 1994 cost and fair values of debt securities by
contractual maturity were as follows (in millions of dollars):
Fair
Cost Value
----- ------
Due in one year or less $86.5 $86.5
Due after one year through five years 66.3 67.3
Due after five years through ten years 95.1 95.4
Mortgage-backed securities 1.8 1.7
------- ------
$249.7 $250.9
====== ======
For the quarters ended March 31, 1994 and 1993, proceeds from the sale
of marketable securities and gross realized gains and losses were
not material.
Note 3 - Financial Instruments with Off-Balance-Sheet Risk and Fair
Value of Financial Instruments
The Company is a party to financial instruments with off-balance-sheet-
risk, which are entered into in the normal course of business to reduce
exposure to fluctuations in interest and foreign exchange rates. The
counterparties to these instruments are major international financial
institutions. The Company is exposed to interest and exchange rate risk
in the event of nonperformance by the counterparties to the financial
instruments; however, the Company does not anticipate such
nonperformance.
Interest rate swap agreements are entered into primarily as hedges
against variable interest rate exposures. During the first quarter of
1994, the Company entered into swap agreements which effectively fixed
interest rates on $300 million of variable rate debt, from 1994 through
fiscal 2005. The weighted average fixed rate payable under these
agreements is 6.84%. The differential interest to be paid or received
under these agreements is included in interest expense over the life of
the debt.
Foreign exchange forward contracts are entered into to hedge the
effects of exchange rate changes on certain of the Company's non-U.S.
investments. At March 31, 1994, the Company had approximately $209
million in foreign exchange forward contracts outstanding with various
expiration dates through November 1994, which have been designated as
hedges of non-U.S. net investments. Gains and losses on these contracts
are included in the cumulative translation adjustment component of
shareowners' equity.
At March 31, 1994, the fair value of the interest rate swaps and foreign
exchange forward contracts was $12.7 million and $204.1 million
respectively.
Note 4 - Investment Partnerships
During 1993, three of the Company's subsidiaries contributed assets and
third-party investors contributed cash ($125 million) to a limited
partnership. One of the Company's subsidiaries serves as general
partner. All of the other partners, including the third-party
investors, hold limited partner interests. The partnership, which is a
separate and distinct legal entity, is in the business of licensing
database assets and computer software.
-7-
<PAGE>
In addition, during 1993, the Company participated in the formation of a
limited partnership to invest in various securities including those of
the Company. One of the company's subsidiaries serves as managing
general partner. Third-party investors hold limited partner and special
investors interests totaling $500 million. The special investors are
entitled to a specified return on their investments. Funds raised by
the partnership provided a source of the financing for the Company's
repurchase in 1993 of 8.3 million shares of its common stock.
For financial reporting purposes, the assets, liabilities, results of
operations and cash flow of the partnerships described above are
included in the Company's consolidated financial statements. The third-
parties investments in these partnerships at March 31, 1994 and December
31, 1993 totaled approximately $625, million and are reflected in other
liabilities and minority interests. Third-parties share of partnerships
results of operations, including specified returns, is reflected in
other income and expense-net.
Note 5 - Accounts and Notes Payable
Accounts and Notes Payable consisted of the following (in millions
of dollars):
March 31, 1994 December 31, 1993
______________ _________________
Accounts Payable $292.2 $279.8
Notes Payable 394.8 92.0
------- ------
$687.0 $371.8
======= ======
Note 6 - Litigation
The Company and its subsidiaries are involved in legal proceedings,
claims and litigation arising in the ordinary course of business.
In addition, in March and April 1989, five purported class actions
were commenced by certain shareowners (the "Shareowner Class Actions")
against the Company and up to three members of its Board of Directors
(two of whom are also officers) in various United States District
Courts, each alleging violations of the federal securities laws and
seeking unspecified damages arising out of an asserted failure to make
public disclosure of information relating to allegedly improper
practices (the "alleged practices") of the Company's wholly owned
subsidiary, Dun & Bradstreet, Inc., in connection with the selling of
commercial-credit information services. The Shareowner Class Actions
were later consolidated in the United States District Court for the
Southern District of New York.
In February 1990, an amended consolidated Shareowner Class Action
complaint was served on the defendants, alleging additional violations
of the securities laws arising out of an asserted failure to make public
disclosure of the effect that the alleged practices would have on the
Company's future sales and income, and in September 1992, the District
Judge granted a motion to permit this Action to be maintained as a class
action.
On April 16, 1993, attorneys for the defendants and attorneys for the
plaintiffs entered into a memorandum of intent to settle the Shareowner
Class Action for an amount between $15 million and $20 million. On
January 14, 1994, a judgment was entered by the Court approving the
proposed settlement. The exact amount of the settlement will depend on
the monetary amount of claims filed by shareowners who are part of the
class.
As a result of contribution to the settlement by the Company's
insurance carrier and provisions previously recorded by the Company, the
amount of the settlement did not materially affect the Company's
earnings.
On June 9, 1993, American Credit Indemnity ("ACI"), a company of
which the Company owns 95 percent of the outstanding common stock,
received a summons and a consolidated amended class action complaint
(the "Amended Complaint") in a purported class action
-8-
<PAGE>
pending in the United States District Court for the Southern District of
New York captioned "In re Towers Financial Corporation Noteholders
Litigation." The Amended Complaint names 17 defendants, including
Towers Financial Corporation ("Towers") and various subsidiaries and
controlling persons of Towers, as well as ACI, in addition to a "Broker-
Dealer Defendant Class," alleged to consist of more than 75 members.
The Amended Complaint is brought by an alleged class of persons who
bought promissory notes issued by Towers between February 15, 1989 and
February 9, 1993. It alleges that Towers, now operating under Chapter
11 of the Bankruptcy Code, sold nearly $215 million of such notes to
more than 2,800 investors and seeks damages from all the defendants in
at least that amount, as well as punitive damages. The claims against
ACI assert negligent misrepresentation, negligence and fraud under
common law and violations of Section 10(b) (and Rule 10b-5 thereunder)
of the Securities Exchange Act of 1934. The Amended Complaint alleges
that offering documents for the notes mischaracterized insurance
policies issued by ACI to Towers with respect to accounts receivable
securing or backing the notes. It further alleges that ACI issued
policies with limited scope of coverage and for exorbitant premiums with
knowledge that they would be used by Towers to fraudulently market the
notes. ACI has denied the material allegations of the Amended Complaint
and intends to defend vigorously against it.
In the opinion of management, the outcome of all current proceedings,
claims and litigation could have a material effect on quarterly or
annual operating results when resolved in a future period. However, in
the opinion of management, these matters will not materially affect the
Company's consolidated financial position.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Earnings per share in the first quarter were $.64, up 8.5 percent from
$.59 per share a year ago, which excludes the cumulative effect in the
first quarter of last year of accounting changes adopted in 1993.
Including the impact of Statements of Financial Accounting Standards
(SFAS) No. 106 and No. 112, the Company reported a loss of $1.60 per
share a year ago.
Net income in the first quarter grew 3.4 percent to $108.7 million from
$105.2 million a year ago, which excludes the year-ago impact of
accounting changes. The percentage increase in the Company's first-
quarter earnings per share was greater than the increase in net income
due to the impact of the repurchase of 8.3 million shares of the
Company's common stock during the fourth quarter of 1993. Including the
impact of adopting SFAS No. 106 and SFAS No. 112, the Company reported a
loss of $285.4 million in the first quarter last year.
Reported first-quarter revenue increased by 2.6 percent to $1,099.2
million from $1,071.4 million a year ago. Excluding the effects of
acquisitions and divestitures, the adverse impact of the stronger dollar
and timing factors, first-quarter revenue for D&B's current portfolio of
businesses was up about 2 percent. First-quarter revenue growth was
held down by the impact of lower mainframe software revenue at Dun &
Bradstreet Software, past competitive losses at Nielsen Marketing
Research in the U.S., and customers' increased use of lower priced, less
comprehensive U.S. credit services' products.
Reported operating income in the first quarter increased 13.8 percent to
$159.8 million from $140.5 million a year ago. Excluding the effects of
acquisitions and divestitures, the stronger dollar and timing factors,
first-quarter operating income for D&B's current portfolio of businesses
increased by about 16 percent, reflecting improved productivity due in
part to workforce reductions and restructuring actions initiated
throughout the Company in 1993.
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Interest income-net in the first quarter was $3.9 million, compared with
interest income-net of $5.6 million a year ago.
Other expense-net in the first quarter was $11.9 million, compared with
other income-net of $824,000 a year ago. The vast majority of other
expense--net in the first quarter of 1994 was minority interest expense
related to two limited partnerships formed in 1993 and to Gartner Group.
The cost of funds raised by one partnership, which provided funding for
the Company's share repurchase program, was approximately $6.6 million
and was offset by the favorable impact on earnings per share of lower
average shares outstanding.
The Company's first-quarter tax rate was 28.4 percent, unchanged from
a year ago.
Business Segment Highlights
Marketing Information Services reported a 0.2 percent increase in first-
quarter revenue to $440.3 million from $439.3 million a year ago.
Excluding the impact of the stronger dollar and the divestiture of
Donnelley Marketing Information Services (DMIS), first-quarter revenue
growth for the segment was about 4 percent. IMS International reported
first-quarter revenue of $148 million, up 3.5 percent on a reported
basis and up about 6 percent excluding the impact a stronger dollar.
For the full year, IMS anticipates double-digit underlying revenue
growth, driven in part by new products. Nielsen Marketing Research
reported first-quarter revenue of $235 million, down 5.2 percent on a
reported basis and essentially unchanged excluding the impact of the
stronger dollar and the divestiture of DMIS. While its first-quarter
revenue growth was held down by past competitive losses in the U.S. and
the effects of weak economic growth in Europe, Nielsen Marketing
Research has recently signed contracts with a number or major clients
and expects its 1994 underlying revenue growth to be in the same range
as last year's growth rate of 3 percent. Nielsen Media Research
reported a strong increase in first-quarter revenue.
Risk Management and Business Marketing Information Services reported
first-quarter revenue growth of 2.8 percent to $385.6 million from
$375.2 million a year ago. Excluding the impact of a stronger dollar
and the acquisition of Soliditet, segment revenue was up about 3
percent. DBIS North America's first-quarter revenue was essentially
unchanged. U.S. credit services' revenue, which includes the
recognition of revenue from previous subscription sales, also was
essentially unchanged, reflecting in part customers' increased use of
lower priced, less comprehensive U.S. credit services' products. First-
quarter sales of U.S. credit services were down moderately. DBIS
Europe's first-quarter revenue declined on a reported basis, and was
essentially unchanged, excluding the impact of a stronger dollar and the
acquisition of Soliditet. Moody's Investors Service posted a modest
increase in first-quarter revenue.
Software Services reported a 15.0 percent decrease in first-quarter
revenue to $94.8 million from $111.5 million a year ago. Adjusted for
the stronger dollar, Dun & Bradstreet Software's first-quarter 1994
revenue declined slightly less than the segment, reflecting lower
mainframe software revenue.
Directory Information Services reported a 0.5 percent increase in first-
quarter revenue to $78.8 million from $78.4 million a year ago.
Excluding the impact of timing, revenue growth for the quarter was about
5 percent. Underlying first-quarter sales of Directory Information
Services yellow pages directories were up modestly from a year ago.
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Other Business Services reported first-quarter revenue of $99.8 million,
up 49.1 percent from $66.9 million a year ago. Adjusted for the timing
effect of the acquisition of Gartner Group, segment revenue increased by
about 4 percent. Gartner Group reported an excellent increase in first-
quarter revenue. NCH Promotional Services reported a significant
decrease in first-quarter revenue, reflecting actions taken to improve
cash flow and overall profitability, and declines in overall market
volume.
Changes in Financial Condition at March 31, 1994
Compared with December 31, 1993
Accounts and Notes Payable increased to $687.0 million at March 31, 1994
from $371.8 million at December 31, 1993, primarily reflecting increased
domestic short-term borrowings ($296.1 million).
Accrued and Other Current Liabilities decreased to $1,199.6 million at
March 31, 1994 from $1,561.5 million at December 31, 1993, primarily
reflecting the payment ($166.2 million) of the Company's obligation to
an Alaska Native Corporation, postemployment benefit payments ($40.0
million) and restructuring payments ($22.1 million).
Unearned Subscription Income increased to $401.6 million at March 31,
1994, from $263.7 million at December 31, 1993, reflecting the cyclical
pattern of higher subscription sales in the first quarter.
Condensed Consolidated Statement of Cash Flows
Three Months Ended March 31, 1994 and 1993
Net cash provided by operating activities for the three months ended
March 31, 1994 totaled $84.5 million compared with $207.7 million for
the comparable period in 1993. The decrease of $123.2 million primarily
reflected a net increase in accounts receivable of $78.9 million that
resulted from the timing of billings and changes in payment terms
at several divisions, and higher postemployment benefit payments ($40.0
million).
Net cash used in investing activities for three months ended March 31,
1994 totaled $233.3 million compared with $70.8 million for the
comparable period in 1993. The increase in cash used for investing
activities primarily reflected higher payments for marketable securities
($77.4 million), cash paid ($31.3 million) for the acquisition of
several businesses by the Risk Management and Business Marketing
Information Services and Other Business Services segments as well as
increased other investments and notes receivable ($22.1 million) for
minority ownership interests in several companies by the Marketing
Information Services segment and higher capital expenditures ($24.1
million).
Net cash provided by financing activities was $11.6 million for the
three months ended March 31, 1994 compared with net cash used in
financing activities of $83.5 million for the comparable period in 1993.
The change of $95.1 million primarily reflected increased domestic
short-term borrowings of $291.2 million partially offset by the payment
of Alaska Native Corporation obligations of $166.2 million.
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Other
Regarding 1994, the Company reiterates it is anticipating growth in
earnings per share somewhat above the 8.4 percent growth in 1993. (For
the full year 1993, earnings per share rose 8.4 percent to $3.36,
excluding the impact of the fourth-quarter restructuring charge and the
adoption of required accounting changes.) The Company also believes it
will achieve underlying revenue growth in 1994 above its 1993 underlying
revenue growth of about 3.5 percent. Underlying revenue growth in 1994
is expected to pick up from the first-quarter rate in part because of
new products company-wide, improving sales of client/server software at
Dun & Bradstreet Software, and increased competitive momentum at Nielsen
Marketing Research.
The Board of Directors declared on April 20, 1994 a quarterly dividend
of 65 cents per share, payable June 10, 1994, to shareowners of record
at the close of business May 20, 1994. The new rate of 65 cents per
share is 6.6 percent above the previous quarterly payment of 61 cents
per share.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None
(b) Reports on Form 8-K
There were no reports on Form 8-K during the quarter ended March
31, 1994.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
THE DUN & BRADSTREET CORPORATION
Date: May 12, 1994 By: EDWIN A.BESCHERER, JR.
______________________
Edwin A. Bescherer, Jr.,
Executive Vice President - Finance
and Chief Financial Officer
Date: May 12, 1994 By: THOMAS W. YOUNG
______________________
Thomas W. Young
Senior Vice President and Controller
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