EQUIFAX REPORTS RECORD REVENUE, INCREASE 15% IN SECOND QUARTER
ATLANTA, July 21, 2005 -- Equifax Inc. (NYSE: EFX) today reported revenue of $363 million for the second quarter of 2005, an increase of 15 percent from the same period last year. Operating income of $107 million was up 16 percent from $92 million in the second quarter of 2004.
As compared to the second quarter of 2004, which included a one-time net gain of $23 million ($0.17 per share) from the sale of an investment in a business partner and a $2 million asset impairment charge ($0.01 per share), earnings from continuing operations were $63 million ($0.47 per share) compared to $77 million ($0.58 per share) in the same period last year.
Adjusted for the impact of these one-time events and the Fair and Accurate Credit Transactions Act ("FACT Act"), a non-GAAP measure, revenue was $354 million, up 12 percent; earnings from continuing operations were $60 million, up 8 percent; and EPS was $0.45, up 9 percent. A reconciliation of non-GAAP financial measures to the corresponding GAAP measure is included in the attachment to this press release and is also available in the Investor Center on our website at www.equifax.com.
"Equifax once again delivered broad-based, solid financial performance," said Thomas F. Chapman, Equifax chairman and CEO, "while superbly managing the impact of the FACT Act in partnership with our customers. Our 4,600 employees continue to execute our three-part growth strategy, whose pillars are: broad and deep information assets; powerful scientific analytics; and industry-leading enabling technologies. This strategy continues to drive our strong revenue growth and financial performance."
Second Quarter Performance Highlights Compared to the Second Quarter of 2004
- Cash flow from operations was $88 million; free cash flow, a non-GAAP measure, was $76 million;
- Consolidated operating margins were 29 percent;
- North America reported revenue of $298 million, up 15 percent;
- North America Information Services reported revenue of $206 million, up 17 percent; excluding the impact of the FACT Act, a non-GAAP measure, $196 million, up 11 percent;
- Marketing Services revenue in North America was $63 million, up 7 percent;
- Personal Solutions increased revenue 21 percent to $29 million;
- Europe revenue grew to $35 million, up 2 percent; and
- Latin America revenue rose to $31 million, a 40 percent increase.
About Equifax (www.equifax.com)
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 Personal Solutions provides personal credit management tools that enlighten, enable and empower consumers take control of their credit. Online products give consumers access their credit file and credit score to proactively manage their credit health, prepare for a major purchase and to help protect themselves from potential identity theft. 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.
Risk Factors Relating to 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, changes in laws and regulations governing our business, including the cost of compliance with the Fair and Accurate Credit Transactions Act and federal or 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.
Contact Information:
Jeff Dodge
Investor Relations
(404) 885-8804
jeff.dodge@equifax.com
David Rubinger
Media Relations
(404) 885-8555
david.rubinger@equifax.com
