EQUIFAX REPORTS RECORD REVENUE IN THE THIRD QUARTER
ATLANTA, October 20, 2005 -- Equifax Inc. (NYSE: EFX) today reported third quarter 2005 earnings with record revenue and maintained consistent growth in profits across all businesses.
Earnings from continuing operations were $63 million, a 17 percent increase from the third quarter of 2004, on 17 percent growth in revenue to a record of $375 million. Earnings per share were $0.47, up 17 percent. Cash flow provided by operating activities for the third quarter of 2005 was $103 million, up 10 percent.
Adjusted on a non-GAAP basis for the impact of the Fair and Accurate Credit Transactions Act ("FACT Act"), revenue was $365 million, up 14 percent; earnings from continuing operations were $59 million, up 11 percent; and earnings per share were $0.45, up 11 percent.
"Equifax’s continued strong earnings are a testament to the talented team that continues to guide this great company," said Richard F. Smith, Equifax chairman-elect and CEO. Smith joined Equifax on September 19. “Our business leaders are executing our strategy with precision and that is reflected in our numbers.”
Third Quarter 2005 Financial Highlights
- Operating profit margin was 29 percent compared to 30 percent in the third quarter 2004.
- Revenue of $375 million, an increase of 17 percent from last year, reflected continued strong performances by North America Information Services, Personal Solutions and Latin America.
- Free cash flow (a non-GAAP measure), which is an alternative measure of liquidity (and is defined as cash provided by operating activities less capital-related expenditures), was $92 million, an increase of 13 percent from $81 million in third quarter 2004.
- Total debt at September 30, 2005 decreased by $47 million to $608 million from December 31, 2004. The remaining borrowing capacity at September 30, 2005 under Equifax’s committed financing facilities totaled $407 million.
- Equifax repurchased 1.2 million shares of its common stock for $40 million and had $144 million remaining under its current authorization.
Third Quarter 2005 Operating Highlights
North America
Total revenue increased 17 percent to $306 million in the third quarter, compared to $261 million in the prior year. North America Information Services reported revenue of $211 million, up 19 percent; excluding the impact of the FACT Act (a non-GAAP measure), $201 million, up 13 percent. Marketing Services revenue in North America was $66 million, up 9 percent. Personal Solutions increased revenue 22 percent to $29 million.
Europe
Total revenue was $35 million, relatively flat compared to 2004. Operating margin was 25 percent, up from 24 percent in 2004.
Latin America
Total revenue rose to $35 million, up 47 percent, reflecting strong growth in all country markets. Operating margin was 29 percent, up from 20 percent in 2004.
About Equifax
Equifax Inc. is a global leader in turning information into intelligence. For businesses, Equifax provides faster and easier ways to find, approve and market to the appropriate customers. For consumers, Equifax offers easier, instantaneous ways to buy products or services and better insight into and management of their personal credit.
Equifax. Information that Empowers.
Earnings Webcast
Equifax's quarterly teleconference to discuss financial results will be held today at 9:00 a.m. (EDT). The live audio Webcast of the speakers' presentations will be available at www.equifax.com and a replay will be available at the same site shortly after the conclusion of the Webcast.
Non-GAAP Reconciliation Information
Equifax has presented in this press release and will discuss during the teleconference certain non-GAAP financial measures the company believes are useful to investors to assess the company’s operating performance. These non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles and may be different from the non-GAAP financial measures used by other companies. As required by SEC rules, a reconciliation of such measures to the most comparable GAAP measure is presented below in the Common Questions and Answers (Unaudited) that are a part of this press release. This information can also be found under the heading "Non-GAAP/GAAP Measures" in the Investor Center on our website at www.equifax.com. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Caution Concerning Forward-Looking Statements
Statements in this press release that relate to Equifax’s future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Future events, risks and uncertainties, individually or in the aggregate, could cause our actual results to differ materially from those expressed or implied in these forward-looking statements. Those factors include, but are not limited to, changes in worldwide and U.S. economic conditions that materially impact consumer spending and consumer debt, changes in demand for Equifax’s products and services, our ability to develop new products and services, pricing and other competitive pressures, risks relating to illegal third party efforts to access data, risks associated with the integration of acquisitions and other investments, the outcome of pending litigation, changes in laws and regulations governing our business, including the cost of compliance with the FACT Act and federal and state responses to identity theft concerns, and certain other factors discussed under the caption “Risk Factors” in the Management’s Discussion and Analysis section of Equifax’s Annual Report on Form 10-K for the year ended December 31, 2004, and in our other filings with the SEC. Equifax assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.
