Last10K.com

Equifax Inc (EFX) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2011

Equifax Inc

CIK: 33185 Ticker: EFX

Exhibit 99.1  

 

1550 Peachtree Street, N.W. Atlanta, Georgia 30309

 

NEWS RELEASE

Contact:

 

Jeff Dodge Tim Klein
Investor Relations Media Relations
(404) 885-8804 (404) 885-8555
jeff.dodge@equifax.com tim.klein@equifax.com

 

Equifax Reports Strong Fourth Quarter and Full Year 2011 Results

 

  · Fourth quarter revenue growth was 6 percent, and 10 percent excluding Brazil, which was deconsolidated in the second quarter of 2011. 
     
  · Operating income for the quarter was up 14 percent.
     
  · Operating margin was 24.7 percent, up 190 basis points from the fourth quarter of 2010. 

 

ATLANTA, February 8, 2012

— Equifax Inc. (NYSE: EFX) today announced financial results for the quarter ended December 31, 2011. The company reported revenue from continuing operations of $509.7 million in the fourth quarter of 2011, a 6 percent increase from the fourth quarter of 2010. On a non-GAAP basis, fourth quarter revenue was up 10 percent, excluding Brazilian operating results due to the deconsolidation of Brazil in the second quarter of 2011.

 

Fourth quarter diluted EPS from continuing operations attributable to Equifax was $0.60, up 20 percent from the fourth quarter of 2010. On a non-GAAP basis, adjusted EPS from continuing operations attributable to Equifax, excluding a tax benefit and the impact of acquisition-related amortization expense, was $0.68, up 10 percent from the fourth quarter of 2010.

 

For the full year 2011, revenue from continuing operations was $2.0 billion, a 5 percent increase from 2010. Excluding Brazilian operating results, a non-GAAP measure, full year revenue was up 8 percent. Diluted EPS from continuing operations was $1.87 compared to $1.86 for the full year 2010. On a non-GAAP basis, full year adjusted EPS from continuing operations, which excludes the impact of acquisition-related amortization expense, the loss on the deconsolidation of our Brazilian business and an income tax benefit, was $2.52, up 9 percent from the prior year period. For the full year 2011, we returned $220.4 million of cash to shareholders through dividends and stock repurchases during the year.

 

"I am very proud of our fourth quarter performance which topped off a year of significant accomplishments including strong execution on our core growth initiatives, which resulted in acceleration of our organic non-mortgage revenue growth. We continue to diversify our served markets and customers through the rapid deployment of many new products. New products have resulted in an expansion of our markets as well as share gains within our current customer base. We are also becoming well positioned for long-term growth in Brazil through our successful partnership with Boa Vista Servicos," said Richard F. Smith, Equifax's Chairman and Chief Executive Officer. "In 2012, there will be new opportunities that will drive our business performance. You can expect this management team to continue building on its accomplishments to further enhance long term revenue growth and operating margin."

 

 
 

 

Fourth Quarter 2011 Highlights

 

  · In addition to the financial highlights noted above, fourth quarter 2011 net income from continuing operations attributable to Equifax was $72.9 million, a 17 percent increase from the prior year. On a non-GAAP basis, adjusted net income from continuing operations, which excludes an income tax benefit and the impact of acquisition-related amortization expense, was $83.0 million, an 8 percent increase from the fourth quarter of 2010.
     
  · Operating margin from continuing operations was 24.7 percent for the fourth quarter of 2011, up from 22.8 percent in the fourth quarter of 2010.
     
  · We repurchased 1.9 million of our common shares on the open market for $67.1 million during the fourth quarter of 2011. At December 31, 2011, our remaining authorization for future share repurchases was $112.1 million.

 

U.S. Consumer Information Solutions (USCIS)

Total revenue was $215.6 million in the fourth quarter of 2011 compared to $191.2 million in the fourth quarter of 2010, an increase of 13 percent.

 

  · Online Consumer Information Solutions revenue was $136.5 million, up 17 percent from a year ago.
  · Mortgage Solutions revenue was $33.3 million, up 13 percent from a year ago.
  · Consumer Financial Marketing Services revenue was $45.8 million, up 2 percent when compared to a year ago.
     

Operating margin for USCIS was 37.5 percent in the fourth quarter of 2011 compared to 36.3 percent in the fourth quarter of 2010.

 

International

Total revenue was $116.3 million in the fourth quarter of 2011, an 8 percent decrease from the fourth quarter of 2010. On a non-GAAP basis, excluding Brazil, revenue grew 10 percent on a reported basis and 12 percent on a local currency basis.

 

  · Latin America revenue was $44.5 million, down 26 percent in U.S. dollars from a year ago.  On a non-GAAP basis, excluding Brazil, revenue grew 14 percent in local currency and 10 percent in U.S dollars from a year ago.
  · Europe revenue was $41.7 million, up 16 percent in local currency and 15 percent in U.S. dollars from a year ago. 
  · Canada Consumer revenue was $30.1 million, up 4 percent in local currency and 3 percent in U.S. dollars from a year ago.

 

Operating margin for International was 28.7 percent in the fourth quarter of 2011 compared to 23.6 percent in the fourth quarter of 2010.

 

2
 

 

TALX Workforce Solutions

Total revenue was $105.8 million in the fourth quarter of 2011, a 3 percent increase over the fourth quarter of 2010. TALX Workforce Solutions’ business segments were realigned to reflect how we are now managing the business. Refer to Question #5 in the Common Questions and Answers attached for further information.

 

  · Verification Services revenue was $54.9 million, up 11 percent when compared to a year ago.
  · Employer Services revenue was $50.9 million, down 4 percent from a year ago.

 

Operating margin for TALX Workforce Solutions was 23.2 percent in the fourth quarter of 2011 compared to 24.4 percent in the fourth quarter of 2010 and 23.0 percent in the third quarter of 2011.

 

North America Personal Solutions

Revenue was $45.6 million, a 21 percent increase from the fourth quarter of 2010. Operating margin was 30.5 percent compared to 30.9 percent in the fourth quarter of 2010.

 

North America Commercial Solutions

Revenue was $26.4 million, up 6 percent in U.S. dollars and in local currency compared to the fourth quarter of 2010. Operating margin was 34.4 percent, compared to 32.3 percent in the fourth quarter of 2010.

 

First Quarter 2012 Outlook

 

Based on the current level of domestic and international business activity that we have experienced through the current date and current foreign exchange rates, consolidated revenue from continuing operations for the first quarter of 2012 is expected to be up 9 to 12 percent from the year-ago quarter, excluding Brazil. First quarter 2012 adjusted EPS from continuing operations attributable to Equifax, which excludes the impact of acquisition-related amortization expense, is expected to be between $0.64 and $0.67.

 

About Equifax

 

Equifax is a global leader in consumer, commercial and workforce information solutions, providing businesses of all sizes and consumers with information they can trust. We organize and assimilate data on more than 500 million consumers and 81 million businesses worldwide, and use advanced analytics and proprietary technology to create and deliver customized insights that enrich both the performance of businesses and the lives of consumers.

 

Headquartered in Atlanta, Equifax operates or has investments in 17 countries and is a member of Standard & Poor’s (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange under the symbol EFX. For more information, please visit www.equifax.com.

 

Earnings Conference Call and Audio Webcast

 

In conjunction with this release, Equifax will host a conference call tomorrow, February 9, 2012, at 8:30 a.m. (EST) via a live audio webcast. To access the webcast, go to the Investor Center of our website at www.equifax.com. The discussion will be available via replay at the same site shortly after the conclusion of the webcast. This press release is also available at that website.

 

3
 

 

Non-GAAP Financial Measures

 

This earnings release presents operating revenue excluding the results of our Brazilian operations from Equifax Inc., International, and Latin America revenue. The release also presents net income and diluted EPS from continuing operations attributable to Equifax which excludes an income tax benefit, the loss on the deconsolidation of our Brazilian business and acquisition-related amortization expense, net of tax. These are important financial measures for Equifax but are not financial measures as defined by GAAP.

 

These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of operating revenue or EPS as determined in accordance with GAAP.

 

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented in the Q&A. This information can also be found under “Investor Center/GAAP/Non-GAAP Measures” on our website at www.equifax.com.

 

Forward-Looking Statements

 

This release contains forward-looking statements or forward-looking information. These statements can be identified by expressions of belief, expectation or intention, as well as statements that are not historical fact. These statements are based on certain factors and assumptions including with respect to foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities and effective tax rates. While the company believes these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.

 

Several factors could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to actions taken by us, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), as well as from developments beyond our control, including, but not limited to, changes in worldwide and U.S. economic conditions that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services. Other risk factors include our ability to successfully develop and market new products and services, respond to pricing and other competitive pressures, complete and integrate acquisitions and other investments and achieve targeted cost efficiencies; risks relating to illegal third party efforts to access data; changes in, and the effects of, laws and regulations and government policies governing our business, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, in particular the establishment of a new Consumer Financial Protection Bureau with authority to write rules impacting the business of, conduct examinations of, and enforce the laws and regulations it writes against credit reporting companies, and related regulations, federal or state responses to identity theft concerns; adverse or uncertain economic conditions and changes in credit and financial markets; the European sovereign debt crisis; the recent downgrade of U.S. sovereign debt and political concerns over related budgetary matters, exchange rates; timing and amount of capital expenditures; changes in capital markets and corresponding effects on the company’s investments and benefit plan obligations; earnings exchange rates and the decisions of taxing authorities, all of which could affect our effective tax rates; and potential adverse developments in new and pending legal proceedings or governments investigations. Additional risks and uncertainties can be found in our Annual Report on Form 10-K for the year ended December 31, 2010 under captions “Forward-Looking Statements” and “Item 1A, “Risk Factors”, and in our other filings with the U.S. Securities and Exchange Commission. Forward-looking statements are given only as at the date of this release and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

4
 

 

 

 

  EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

 

   Three Months Ended 
   December 31, 
   2011   2010 
(In millions, except per share amounts)  (Unaudited) 
Operating revenue  $509.7   $482.0 
Operating expenses:          
Cost of services (exclusive of depreciation and amortization below)   194.2    193.3 
Selling, general and administrative expenses   148.6    137.0 
Depreciation and amortization   41.2    42.0 
Total operating expenses   384.0    372.3 
Operating income   125.7    109.7 
Interest expense   (13.9)   (13.8)
Other (expense) income, net   1.0    0.3 
Consolidated income from continuing operations before income taxes   112.8    96.2 
Provision for income taxes   (38.3)   (32.2)
Consolidated income from continuing operations   74.5    64.0 
Discontinued operations, net of tax   1.5    - 
Consolidated net income   76.0    64.0 
Less: Net income attributable to noncontrolling interests   (1.6)   (1.8)
Net income attributable to Equifax  $74.4   $62.2 
Amounts attributable to Equifax:          
Income from continuing operations attributable to Equifax  $72.9   $62.2 
Discontinued operations, net of tax   1.5    - 
Net income  $74.4   $62.2 
Basic earnings per common share:          
Income from continuing operations attributable to Equifax  $0.61   $0.51 
Discontinued operations attributable to Equifax   0.01    - 
Net income attributable to Equifax  $0.62   $0.51 
Weighted-average shares used in computing basic earnings per share   120.3    123.1 
Diluted earnings per common share:          
Income from continuing operations attributable to Equifax  $0.60   $0.50 
Discontinued operations attributable to Equifax   0.01    - 
Net income attributable to Equifax  $0.61   $0.50 
Weighted-average shares used in computing diluted earnings per share   122.2    124.9 
Dividends per common share  $0.16   $0.16 

 

5
 

  

  EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

 

   Twelve Months Ended 
   December 31, 
   2011   2010 
(In millions, except per share amounts)  (Unaudited) 
Operating revenue  $1,959.8   $1,859.5 
Operating expenses:          
Cost of services (exclusive of depreciation and amortization below)   768.5    759.9 
Selling, general and administrative expenses   554.8    507.4 
Depreciation and amortization   165.5    162.2 
Total operating expenses   1,488.8    1,429.5 
Operating income   471.0    430.0 
Interest expense   (55.1)   (56.1)
Other (expense) income, net   (7.7)   1.3 
Consolidated income from continuing operations before income taxes   408.2    375.2 
Provision for income taxes   (168.0)   (131.9)
Consolidated income from continuing operations   240.2    243.3 
Discontinued operations, net of tax   1.5    31.5 
Consolidated net income   241.7    274.8 
Less: Net income attributable to noncontrolling interests   (8.8)   (8.1)
Net income attributable to Equifax  $232.9   $266.7 
Amounts attributable to Equifax:          
Income from continuing operations attributable to Equifax  $231.4   $235.2 
Discontinued operations, net of tax   1.5    31.5 
Net income  $232.9   $266.7 
Basic earnings per common share:          
Income from continuing operations attributable to Equifax  $1.90   $1.89 
Discontinued operations attributable to Equifax   0.01    0.25 
Net income attributable to Equifax  $1.91   $2.14 
Weighted-average shares used in computing basic earnings per share   121.9    124.8 
Diluted earnings per common share:          
Income from continuing operations attributable to Equifax  $1.87   $1.86 
Discontinued operations attributable to Equifax   0.01    0.25 
Net income attributable to Equifax  $1.88   $2.11 
Weighted-average shares used in computing diluted earnings per share   123.7    126.5 
Dividends per common share  $0.64   $0.28 

 

6
 

 

  EQUIFAX

CONSOLIDATED BALANCE SHEETS

 

   December 31,   December 31, 
   2011   2010 
         
(In millions, except par values)  (Unaudited)     
ASSETS          
Current assets:          
Cash and cash equivalents  $127.7   $119.4 
Trade accounts receivable, net of allowance for doubtful accounts of $5.9 and $7.5 at December 31, 2011 and 2010, respectively   284.4    262.6 
Prepaid expenses   24.6    26.1 
Other current assets   15.6    25.0 
Total current assets   452.3    433.1 
Property and equipment:          
Capitalized internal-use software and system costs   332.2    315.9 
Data processing equipment and furniture   183.1    181.0 
Land, buildings and improvements   178.4    169.5 
Total property and equipment   693.7    666.4 
Less accumulated depreciation and amortization   (400.8)   (368.0)
Total property and equipment, net   292.9    298.4 
Goodwill   1,961.2    1,914.7 
Indefinite-lived intangible assets   95.6    95.6 
Purchased intangible assets, net   550.2    593.9 
Other assets, net   156.4    101.8 
Total assets  $3,508.6   $3,437.5 
           
LIABILITIES AND EQUITY          
Current liabilities:          
Short-term debt and current maturities  $47.2   $20.7 
Accounts payable   27.5    24.6 
Accrued expenses   56.3    61.9 
Accrued salaries and bonuses   79.2    71.9 
Deferred revenue   55.8    58.7 
Other current liabilities   96.8    81.7 
Total current liabilities   362.8    319.5 
Long-term debt   966.0    978.9 
Deferred income tax liabilities, net   227.8    248.1 
Long-term pension and other postretirement benefit liabilities   176.4    129.0 
Other long-term liabilities   53.5    53.6 
Total liabilities   1,786.5    1,729.1 
Equifax shareholders' equity:          
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none   -    - 
Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at December 31, 2011 and 2010; Outstanding shares - 119.6 and 122.6 at December 31, 2011 and 2010, respectively   236.6    236.6 
Paid-in capital   1,118.0    1,105.8 
Retained earnings   2,879.2    2,725.7 
Accumulated other comprehensive loss   (391.8)   (344.5)
Treasury stock, at cost, 69.1 shares and 64.6 shares at December 31, 2011 and 2010, respectively   (2,133.7)   (1,991.0)
Stock held by employee benefits trusts, at cost, 0.6 and 2.1 shares at December 31, 2011 and 2010, respectively   (5.9)   (41.2)
Total Equifax shareholders' equity   1,702.4    1,691.4 
Noncontrolling interests   19.7    17.0 
Total equity   1,722.1    1,708.4 
Total liabilities and equity  $3,508.6   $3,437.5 

 

7
 

 

  EQUIFAX

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Twelve Months Ended 
   December 31, 
   2011   2010 
(In millions)  (Unaudited) 
Operating activities:          
Consolidated net income  $241.7   $274.8 
Adjustments to reconcile consolidated net income to net cash provided by operating activities:          
Loss (gain) on divestitures   26.3    (27.1)
Depreciation and amortization   164.9    167.8 
Stock-based compensation expense   24.4    21.8 
Excess tax benefits from stock-based compensation plans   (1.2)   (3.5)
Deferred income taxes   3.6    0.1 
Changes in assets and liabilities, excluding effects of acquisitions:          
Accounts receivable, net   (26.6)   (3.6)
Prepaid expenses and other current assets   2.4    6.1 
Other assets   15.0    (1.4)
Current liabilities, excluding debt   1.3    (32.4)
Other long-term liabilities, excluding debt   (43.1)   (50.0)
Cash provided by operating activities   408.7    352.6 
           
Investing activities:          
Capital expenditures   (75.0)   (99.8)
Acquisitions, net of cash acquired   (127.4)   (82.6)
Proceeds received from divestitures   2.5    181.7 
Investment in unconsolidated affiliates, net   (4.2)   1.7 
Cash (used in) provided by investing activities   (204.1)   1.0 
           
Financing activities:          
Net short-term borrowings (repayments)   24.4    (134.0)
Net repayments under long-term revolving credit facilities   -    (5.0)
Payments on long-term debt   (16.7)   (20.8)
Treasury stock purchases   (142.3)   (167.5)
Dividends paid to Equifax shareholders   (78.1)   (35.2)
Dividends paid to noncontrolling interests   (5.6)   (5.1)
Proceeds from exercise of stock options   23.7    29.3 
Excess tax benefits from stock-based compensation plans   1.2    3.5 
Other   (2.5)   (0.5)
Cash used in financing activities   (195.9)   (335.3)
Effect of foreign currency exchange rates on cash and cash equivalents   (0.4)   (2.0)
Increase in cash and cash equivalents   8.3    16.3 
Cash and cash equivalents, beginning of period   119.4    103.1 
Cash and cash equivalents, end of period  $127.7   $119.4 

 

8
 

  

Common Questions & Answers (Unaudited)

(Dollars in millions)

  

1. Can you provide a further analysis of operating revenue and operating income by operating segment?
  Operating revenue and operating income consist of the following components:

  

(in millions)  Three Months Ended December 31, 
                       Local Currency 
Operating revenue:   2011    2010    $ Change    % Change    % Change* 
Online Consumer Information Solutions  $136.5   $116.8   $19.7    17%     
Mortgage Solutions   33.3    29.3    4.0    13%     
Consumer Financial Marketing Services   45.8    45.1    0.7    2%     
Total U.S. Consumer Information Solutions   215.6    191.2    24.4    13%     
Latin America   44.5    60.4    (15.9)   -26%   -23%
Europe   41.7    36.2    5.5    15%   16%
Canada Consumer   30.1    29.3    0.8    3%   4%
Total International   116.3    125.9    (9.6)   -8%   -6%
Verification Services**   54.9    49.3    5.6    11%     
Employer Services**   50.9    52.9    (2.0)   -4%     
Total TALX Workforce Solutions   105.8    102.2    3.6    3%     
North America Personal Solutions   45.6    37.8    7.8    21%     
North America Commercial Solutions   26.4    24.9    1.5    6%   6%
Total operating revenue  $509.7   $482.0   $27.7    6%   6%

 

(in millions)  Twelve Months Ended December 31, 
                        Local Currency 
Operating revenue:   2011    2010    $ Change    % Change    % Change* 
Online Consumer Information Solutions  $519.8   $485.2   $34.6    7%     
Mortgage Solutions   119.5    113.5    6.0    5%     
Consumer Financial Marketing Services   153.3    144.3    9.0    6%     
Total U.S. Consumer Information Solutions   792.6    743.0    49.6    7%     
Latin America   208.8    231.3    (22.5)   -10%   -11%
Europe   158.7    137.6    21.1    15%   11%
Canada Consumer   125.4    113.9    11.5    10%   6%
Total International   492.9    482.8    10.1    2%   -1%
Verification Services**   192.5    183.4    9.1    5%     
Employer Services**   211.8    212.2    (0.4)   0%     
Total TALX Workforce Solutions   404.3    395.6    8.7    2%     
North America Personal Solutions   180.7    157.6    23.1    15%     
North America Commercial Solutions   89.3    80.5    8.8    11%   10%
Total operating revenue  $1,959.8   $1,859.5   $100.3    5%   5%

 

(in millions)  Three Months Ended December 31, 
         Operating         Operating           
Operating income:   2011    Margin    2010    Margin    $ Change    % Change 
U.S. Consumer Information Solutions  $80.8    37.5%  $69.4    36.3%  $11.4    16%
International   33.5    28.7%   29.7    23.6%   3.8    12%
TALX Workforce Solutions   24.6    23.2%   24.9    24.4%   (0.3)   -1%
North America Personal Solutions   13.9    30.5%   11.7    30.9%   2.2    19%
North America Commercial Solutions   9.1    34.4%   8.0    32.3%   1.1    13%
General Corporate Expense   (36.2)   nm    (34.0)   nm    (2.2)   -6%
Total operating income  $125.7    24.7%  $109.7    22.8%  $16.0    14%

 

(in millions)  Twelve Months Ended December 31, 
         Operating         Operating           
Operating income:   2011    Margin    2010    Margin    $ Change    % Change 
U.S. Consumer Information Solutions  $287.3    36.2%  $269.8    36.3%  $17.5    6%
International   132.2    26.8%   119.4    24.7%   12.8    11%
TALX Workforce Solutions   90.7    22.4%   92.1    23.3%   (1.4)   -2%
North America Personal Solutions   54.1    29.9%   44.6    28.3%   9.5    21%
North America Commercial Solutions   23.6    26.5%   19.5    24.2%   4.1    21%
General Corporate Expense   (116.9)   nm    (115.4)   nm    (1.5)   -1%
Total operating income  $471.0    24.0%  $430.0    23.1%  $41.0    10%

 

nm - not meaningful

* Reflects percentage change in revenue conforming 2011 results using 2010 exchange rates.

** See Question #5 in Common Questions & Answers for the description of the TALX Workforce Solutions reporting structure change.

 

9
 

 

 

Common Questions & Answers (Unaudited)

(Dollars in millions)

 

2. What drove the fluctuation in the effective tax rate?
  Our effective tax rate from continuing operations was 33.9% for the three months ended December 31, 2011 up from 33.5% for the same period in 2010.  While we recognized a $4.2 million cumulative income tax benefit resulting from the recognition of an income tax deduction related to several prior years, the benefit was more than offset by a decrease as compared to 2010 in the amount of benefit recognized from reducing our tax valuation allowance and other immaterial items.

 

3. Can you provide depreciation and amortization by segment?
  Depreciation and amortization are as follows:

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2011   2010   2011   2010 
U.S. Consumer Information Solutions  $11.0   $11.0   $44.1   $41.4 
International   6.4    6.7    26.9    25.6 
TALX Workforce Solutions   16.8    17.3    66.6    67.9 
North America Personal Solutions   1.6    1.4    6.0    5.4 
North America Commercial Solutions   1.2    1.6    5.1    6.2 
General Corporate Expense   4.2    4.0    16.8    15.7 
Total depreciation and amortization  $41.2   $42.0   $165.5   $162.2 
                     

 

4. What was the currency impact on the foreign operations?
  The U.S. dollar impact on operating revenue and operating income is as follows:

  

   Three Months Ended December 31, 2011 
   Operating Revenue   Operating Income 
   Amount   %   Amount   % 
Canada Consumer  $(0.3)   -1%  $(0.1)   -1%
Canada Commercial   (0.1)   0%   -    0%
Europe   (0.2)   -1%   (0.1)   -1%
Latin America   (1.9)   -3%   (0.8)   -6%

 

   Twelve Months Ended December 31, 2011 
   Operating Revenue   Operating Income 
   Amount   %   Amount   % 
Canada Consumer  $5.1    4%  $2.1    4%
Canada Commercial   1.0    1%   0.4    2%
Europe   6.0    4%   1.0    4%
Latin America   4.0    1%   (0.7)   -1%

  

10
 

  

Common Questions & Answers (Unaudited)

(Dollars in millions)

 

5. a) What is the new TALX Workforce Solutions structure that is now being reported?

 

  During the fourth quarter of 2011, we changed our TALX Workforce Solutions reporting structure to reflect the way that the business is managed and will continue to be managed going forward.  Most of the services previously reported under The Work Number are now reported as Verification Services.  Verification Services include all services that enable clients to verify income and employment.  Tax and Talent Management Services are now included in Employer Services, along with certain complementary payroll-based transaction services, such as W-2 and I-9 procession services.

 

  b) What was the 2011 and 2010 quarterly revenue of Verification Services and TALX Employer Services?

  

2011                
   Q1   Q2   Q3   Q4 
Verification Services  $41.4   $44.4   $51.8   $54.9 
Employer Services   58.0    51.9    51.0    50.9 
Total TALX Workforce Solutions  $99.4   $96.3   $102.8   $105.8 

 

2010                
   Q1   Q2   Q3   Q4 
Verification Services  $40.1   $43.7   $50.3   $49.3 
Employer Services   55.2    55.3    48.8    52.9 
Total TALX Workforce Solutions  $95.3   $99.0   $99.1   $102.2 

 

11
 

 

Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures (Unaudited)

(Dollars in millions, except per share amounts)

 

A. Reconciliation of net income from continuing operations attributable to Equifax to diluted EPS from continuing operations attributable to Equifax, adjusted for an income tax benefit, the loss on the deconsolidation of Brazilian business and acquisition-related amortization expense:

  

   Three Months Ended         
   December 31,         
   2011   2010   $ Change   % Change 
                 
Net income from continuing operations attributable to Equifax  $72.9   $62.2   $10.7    17%
                     
Income tax benefit (1)   (4.2)   -    (4.2)   nm 
                     
Net income from continuing operations attributable to Equifax, adjusted for an income tax benefit   68.7    62.2    6.5    10%
                     
Acquisition-related amortization expense, net of tax   14.3    14.7    (0.4)   -2%
                     
Net income from continuing operations attributable to Equifax, adjusted for an income tax benefit and for acquisition-related amortization expense  $83.0   $76.9   $6.1    8%
                     
Diluted EPS from continuing operations attributable to Equifax, adjusted for an income tax benefit and for acquisition-related amortization expense  $0.68   $0.62   $0.06    10%
                     
Weighted-average shares used in computing diluted EPS   122.2    124.9           

 

   Twelve Months Ended         
   December 31,         
   2011   2010   $ Change   % Change 
                 
Net income from continuing operations attributable to Equifax  $231.4   $235.2   $(3.8)   -2%
                     
Income tax benefit (1)   (4.2)   -    (4.2)   nm 
                     
Loss on the deconsolidation of Brazilian business (2)   27.8    -    27.8    nm 
                     
Net income from continuing operations attributable to Equifax, adjusted for an income tax benefit and for the loss on the deconsolidation of Brazilian business  $255.0   $235.2   $19.8    8%
                     
Acquisition-related amortization expense, net of tax   57.0    57.2    (0.2)   0%
                     
Net income from continuing operations attributable to Equifax, adjusted for an income tax benefit, loss on the deconsolidation of Brazilian business and acquisition-related amortization expense  $312.0   $292.4   $19.6    7%
                     
Diluted EPS from continuing operations attributable to Equifax, adjusted for an income tax benefit, loss on the deconsolidation of Brazilian business and acquisition-related amortization expense  $2.52   $2.31   $0.21    9%
                     
Weighted-average shares used in computing diluted EPS   123.7    126.5           

 

nm - not meaningful

  (1) We recorded a $4.2 million income tax benefit during the fourth quarter of 2011 resulting from the recognition of an income tax deduction related to several prior years.  See the Notes to this reconciliation for additional detail.
  (2) Loss on the deconsolidation of Brazilian business includes the loss recognized on the merger, net of tax.  See the Notes to this reconciliation for additional detail.

 

12
 

   

Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures (Unaudited)

(Dollars in millions, except per share amounts)

 

B. Reconciliation of operating revenue to adjusted operating revenue for Equifax Inc., International and Latin America, excluding the results of our Brazilian operations:

 

Equifax Inc.    
   Three Months Ended December 31,       Local Currency 
   2011   2010   $ Change   % Change   % Change* 
Operating revenue  $509.7   $482.0   $27.7    6%   6%
                          
Brazil revenue (1)   -    (19.8)   19.8           
                          
Adjusted operating revenue  $509.7   $462.2   $47.5    10%   11%

 

   Twelve Months Ended December 31,       Local Currency 
   2011   2010   $ Change   % Change   % Change* 
Operating revenue  $1,959.8   $1,859.5   $100.3    5%   5%
                          
Brazil revenue (1)   (35.4)   (84.1)   48.7           
                          
Adjusted operating revenue  $1,924.4   $1,775.4   $149.0    8%   8%

 

International    
   Three Months Ended December 31,       Local Currency 
   2011   2010   $ Change   % Change   % Change* 
Operating revenue  $116.3   $125.9   $(9.6)   -8%   -6%
                          
Brazil revenue (1)   -    (19.8)   19.8           
                          
Adjusted operating revenue  $116.3   $106.1   $10.2    10%   12%

 

   Twelve Months Ended December 31,       Local Currency 
   2011   2010   $ Change   % Change   % Change* 
Operating revenue  $492.9   $482.8   $10.1    2%   -1%
                          
Brazil revenue (1)   (35.4)   (84.1)   48.7           
                          
Adjusted operating revenue  $457.5   $398.7   $58.8    15%   12%

 

Latin America    
   Three Months Ended December 31,       Local Currency 
   2011   2010   $ Change   % Change   % Change* 
Operating revenue  $44.5   $60.4   $(15.9)   -26%   -23%
                          
Brazil revenue (1)   -    (19.8)   19.8           
                          
Adjusted operating revenue  $44.5   $40.6   $3.9    10%   14%

 

   Twelve Months Ended December 31,       Local Currency 
   2011   2010   $ Change   % Change   % Change* 
Operating revenue  $208.8   $231.3   $(22.5)   -10%   -11%
                          
Brazil revenue (1)   (35.4)   (84.1)   48.7           
                          
Adjusted operating revenue  $173.4   $147.2   $26.2    18%   17%

  

* Reflects percentage change in revenue conforming 2011 results using 2010 exchange rates.

  (1) Revenue generated from our Brazilian operations that were merged with Boa Vista Servicos, S.A. in the second quarter of 2011.  See the Notes to this reconciliation for additional detail.

 

13
 

  

Notes to Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures

 

Income Tax Benefit – During the fourth quarter of 2011, the Company recorded a cumulative income tax benefit resulting from the recognition of an income tax deduction related to several prior years. Management believes excluding this income tax benefit from certain financial results provides meaningful supplemental information regarding our financial results for the three and twelve months ended December 31, 2011, as compared to 2010, since an income tax benefit of such an amount is not comparable among the periods. This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

 

Loss on the deconsolidation of Brazilian business – During the second quarter of 2011, the Company completed the merger of our Brazilian business with and into Boa Vista Servicos S.A. (“BVS”) in exchange for a 15 percent equity interest in BVS. The Company recorded a $27.8 million loss on the transaction. Management believes excluding the loss from certain financial results provides meaningful supplemental information regarding our financial results for the twelve months ended December 31, 2011, as compared to 2010, since a loss of such an amount is not comparable among the periods. This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

 

Diluted EPS and net income from continuing operations attributable to Equifax, adjusted for an income tax benefit, the loss on the deconsolidation of Brazilian business and acquisition-related amortization expense - We calculate these financial measures by excluding an income tax benefit, the loss on the deconsolidation of our Brazilian business and acquisition-related amortization expense from the determination of net income attributable to Equifax in the calculation of diluted EPS. These financial measures are not prepared in conformity with GAAP. Management believes that these measures are useful because management excludes acquisition-related amortization expense and other items that are not comparable when measuring operating profitability, evaluating performance trends, and setting performance objectives, and it allows investors to evaluate our performance for different periods on a more comparable basis by excluding items that relate to acquisition-related intangible assets and items that impact comparability.

 

Adjusted operating revenue, excluding the results of our Brazilian operations - Management believes excluding the Brazilian revenue from the calculation of operating revenue, on a non-GAAP basis, is useful because it allows investors to evaluate the Company’s growth on a basis consistent with the current composition of our business.

  

14

 


The following information was filed by Equifax Inc (EFX) on Wednesday, February 8, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Equifax Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Equifax Inc.

Continue

Assess how Equifax Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Equifax Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2012 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss (parenthetical)
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Income
Consolidated Statements Of Shareholders' Equity And Comprehensive Income
Consolidated Statements Of Shareholders' Equity And Comprehensive Income (parenthetical)
Acquired Intangible Assets Fair Value And Weighted-average Useful Life (detail)
Acquisitions And Investments
Acquisitions And Investments (tables)
Acquisitions And Investments - Additional Information (detail)
Amount Of Prior Service Cost And Actuarial Loss Included In Accumulated Other Comprehensive Loss That Is Expected To Be Recognized In Net Periodic Benefit Cost (detail)
Amount Of Prior Service Cost And Actuarial Loss Included In Accumulated Other Comprehensive Loss That Is Expected To Be Recognized In Net Periodic Benefit Cost (parenthetical) (detail)
Amounts Recognized In Other Comprehensive Income (loss) (detail)
Amounts Recognized In Other Comprehensive Income (loss) (parenthetical) (detail)
Asset Allocation Ranges And Actual Allocation, Crip (detail)
Asset Allocation Ranges And Actual Allocation, Usrip (detail)
Assets And Liabilities Measured At Fair Value On Recurring Basis (detail)
Assumptions Used To Estimate Fair Value Of Stock Options Granted (detail)
Benefit Costs Included In Accumulated Other Comprehensive Loss That Have Not Yet Recognized In Net Periodic Pension Cost (detail)
Benefit Costs Included In Accumulated Other Comprehensive Loss That Have Not Yet Recognized In Net Periodic Pension Cost (parenthetical) (detail)
Benefit Plans
Benefit Plans (tables)
Benefit Plans - Additional Information (detail)
Changes In Amount Of Goodwill (detail)
Changes In Outstanding Options And Weighed-average Exercise Price Per Share (detail)
Commitments And Contingencies
Commitments And Contingencies (tables)
Commitments And Contingencies - Additional Information (detail)
Components Of Deferred Income Tax Assets And Liabilities (detail)
Components Of Net Periodic Benefit Cost (detail)
Debt
Debt (tables)
Debt - Additional Information (detail)
Debt Outstanding (detail)
Debt Outstanding (parenthetical) (detail)
Deferred Income Tax Assets, Included In Other Current Assets, And Liabilities (detail)
Discontinued Operations
Discontinued Operations - Additional Information (detail)
Domestic And Foreign Income From Continuing Operations Before Income Taxes (detail)
Effect Of One-percentage Point Change In Assumed Healthcare Cost Trend Rates (detail)
Estimated Fair Value Of Net Assets Acquired And Liabilities Assumed At Acquisition Dates (detail)
Estimated Fair Value Of Net Assets Acquired And Liabilities Assumed At Acquisition Dates (parenthetical) (detail)
Estimated Future Amortization Expense (detail)
Estimated Future Benefits Payable For Retirement And Postretirement Plans (detail)
Expected Future Minimum Payment Obligations For Non-cancelable Operating Leases Exceeding One Year (detail)
Fair Value Of Pension Assets (detail)
Fair Value Of Pension Assets (parenthetical) (detail)
Fair Value Of Postretirement Assets (detail)
Fair Value Of Postretirement Assets (parenthetical) (detail)
Financial Information By Geographic Area (detail)
Goodwill And Other Intangible Assets
Goodwill And Other Intangible Assets (tables)
Goodwill And Other Intangible Assets - Additional Information (detail)
Income Taxes
Income Taxes (tables)
Income Taxes - Additional Information (detail)
Merger Of Brazilian Business
Merger Of Brazilian Business - Additional Information (detail)
Net Amounts Recognized, Or Funded Status Of Pension And Other Postretirement Benefit Plans (detail)
Provision For Income Taxes From Continuing Operations (detail)
Provision For Income Taxes Reconciles With U.s. Federal Statutory Rate (detail)
Provision For Income Taxes Reconciles With U.s. Federal Statutory Rate (parenthetical) (detail)
Purchased Intangible Assets (detail)
Quarterly Financial Data (detail)
Quarterly Financial Data (unaudited)
Quarterly Financial Data (unaudited) (tables)
Quarterly Financial Data - Additional Information (detail)
Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits (detail)
Reconciliation Of Beginning And Ending Balances For Plan Assets Valued Using Significant Unobservable Inputs (detail)
Reconciliation Of Projected Benefit Obligations, Plan Assets And Funded Status Of Plans (detail)
Reconciliation Of Weighted-average Outstanding Shares Used In Calculations Of Basic And Diluted Eps (detail)
Restructuring Charges
Restructuring Charges - Additional Information (detail)
Scheduled Future Maturities Of Debt (detail)
Segment Information
Segment Information (detail)
Segment Information (tables)
Segment Information - Additional Information (detail)
Shareholder Rights Plan
Shareholder Rights Plan - Additional Information (detail)
Stock-based Compensation
Stock-based Compensation (tables)
Stock-based Compensation - Additional Information (detail)
Summary Of Changes In Nonvested Stock And Weighted-average Grant Date Fair Value (detail)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (policies)
Summary Of Significant Accounting Policies (tables)
Summary Of Significant Accounting Policies - Additional Information (detail)
Total Stock-based Compensation Expense (detail)
Useful Life Of Other Purchased Intangible Assets (detail)
Valuation And Qualifying Accounts
Valuation And Qualifying Accounts (detail)
Weighted-average Assumptions Used To Determine Benefit Obligations (detail)
Weighted-average Assumptions Used To Determine Net Periodic Benefit Cost (detail)
Ticker: EFX
CIK: 33185
Form Type: 10-K Annual Report
Accession Number: 0001144204-12-010639
Submitted to the SEC: Thu Feb 23 2012 5:06:26 PM EST
Accepted by the SEC: Thu Feb 23 2012
Period: Saturday, December 31, 2011
Industry: Consumer Credit Reporting Collection Agencies

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/efx/0001144204-12-010639.htm