EQUIFAX REPORTS RECORD RESULTS FOR FOURTH QUARTER AND FULL YEAR
Strong Performance Helps EPS Rise 35 Percent in 2004
ATLANTA , February 4, 2005 -- Equifax Inc. (NYSE: EFX) today reported record revenue of $328 million for the fourth quarter of 2004, an increase of 12 percent from the same period last year. Earnings from continuing operations were $55 million, up 70 percent from the same period last year. Earnings per share from continuing operations (EPS) totaled $0.42, a 75 percent increase from the fourth quarter of 2003.
For the full year 2004, revenues increased 5 percent to a record $1.27 billion. EPS from continuing operations in 2004 were $1.78 per share, a 35 percent increase from 2003.
Earnings excluding one-time adjustments, a non-GAAP financial measure, resulted in fourth quarter 2004 EPS of $0.42, a 2 percent increase from 2003. Excluding one-time adjustments for the full year, EPS were $1.62, a 9 percent increase from 2003. A reconciliation of GAAP to non-GAAP items is attached to this news release.
“By any measure, Equifax’s performance in 2004 was strong. We delivered record financial performance and added significant value to our customers and shareholders,” said Thomas F. Chapman, Equifax chairman and CEO.
Fourth quarter performance highlights compared to the fourth quarter of 2003…
- Cash flow from operations was $102 million, up 4 percent; free cash flow, a non-GAAP measure, was $87 million, up 8 percent;
- Consolidated operating margins increased to 30 percent from 20 percent;
- North America reported revenue of $264 million, up 11 percent;
- North America Information Services reported revenue of $180 million, up 13 percent;
- Marketing Services revenue in North America was $61 million, up 1 percent;
- Personal Solutions increased revenue 25 percent to $23 million;
- Europe revenue grew to $38 million, up 17 percent;
- Latin America revenue rose to $25 million, an 11 percent increase.
2004 performance highlights compared to 2003…
- Cash flow from operations rose to $309 million, up 5 percent; free cash flow increased to $262 million, up 9 percent;
- Consolidated operating margins rose to 30 percent from 26 percent;
- North America reported revenue of $1.04 billion, up 2%;
- North America Information Services revenues increased by 4 percent to $707 million;
- Marketing Services revenue was $236 million, down 11 percent;
- Personal Solutions revenue grew 38 percent to $96 million;
- Europe revenue was $142 million, an increase of 23 percent;
- Latin America revenue rose by 14 percent to $92 million.
2005 Outlook
Based on recent business trends, Equifax expects earnings per share to be between $1.69 and $1.76. This does not account for the impact of expensing share-based payments under Financial Accounting Standards Board No. 123(R), “Share-Based Payment.” Revenue growth is expected to be between 6 percent and 9 percent, excluding the regulatory recovery fee. Free cash flow from continuing operations is expected to be in the range of $255 million to $275 million, and capital expenditures are targeted at $60 million to $70 million.
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.
Teleconference and non-GAAP reconciliation information
Equifax's quarterly teleconference to discuss results will be held today at 9 a.m. (EDT). The live audio Webcast of the speakers' presentations will be available at www.equifax.com. Please note that Microsoft Media Player is required to access the Webcast. This can be downloaded from www.microsoft.com/windows/mediaplayer.
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 Financial Measures" in the Investor Center on the company's 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.
Safe Harbor
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 associated with the integration of acquisitions and other investments, changes in laws and regulations governing our business, including particularly the cost of compliance with the Fair and Accurate Credit Transactions Act, 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 10K for the year ended December 31, 2003, 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 the y were made.
Contact:
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Jeff Dodge Investor Relations (404) 885-8804 jeff.dodge@equifax.com |
David Rubinger Media Relations (404) 885-8555 david.rubinger@equifax.com |
