Equifax Reports Revenue of $501.9 Million and Operating Income of $127.7 Million for the Second Quarter of 2008
ATLANTA, July 21 /PRNewswire-FirstCall/ -- Equifax Inc. (NYSE: EFX) today announced financial results for its second quarter ended June 30, 2008. The company reported revenue of $501.9 million, a 10 percent increase over the second quarter of 2007, and operating income of $127.7 million, a 7 percent increase from the same period of 2007. Diluted earnings per share ("EPS") was $0.54 compared to $0.51 in the same period of the prior year. On a non-GAAP basis, EPS, excluding the impact of acquisition-related amortization expense ("adjusted EPS"), was $0.64, up 12 percent from the same period of 2007.
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"Equifax's increasingly diversified business model positioned us well for the current environment as we delivered solid, broad-based performance. We continue to invest for the future through new product innovation, international expansion, and enhancing our value-added services, including enabling technologies and predictive sciences. At the same time, operating performance benefited from implementing process improvement initiatives, the expertise of our outsourcing partners and managing our discretionary expenses," said Richard F. Smith, Equifax's Chairman and Chief Executive Officer. "In spite of the fact that the economy has weakened further since we last gave guidance, we remain confident in our original range and full year performance will likely be in the middle to lower half of that range assuming economic conditions remain similar to what we experienced in the second quarter."
Second Quarter 2008 Highlights
-- Double-digit revenue growth in our International and North America Commercial Solutions operating segments and results from TALX contributed to a 10 percent increase in revenue in the second quarter of 2008, when compared to the same period in 2007.
-- Operating margin was 25.4 percent compared to 25.1 percent in the first quarter of 2008 and 26.4 percent in the second quarter of 2007. On a non-GAAP basis, excluding the impact of acquisition-related amortization expense, operating margin was 29.8 percent in the second quarter of 2008 compared to 29.6 percent in the same period of 2007.
-- Net income was $70.8 million, a 1 percent increase from the second quarter of 2007. Year-over-year net income growth was negatively impacted by increased intangible amortization expense and interest expense on additional debt related to the acquisition of TALX. On a non-GAAP basis, excluding the impact of acquisition-related amortization expense, net income increased 7 percent.
-- EBITDA (a non-GAAP financial measure defined as operating income adding back depreciation and amortization expense) was $165.7 million, up 11 percent from the second quarter of 2007.
-- During the second quarter 2008, we repurchased 1.1 million of our common shares on the open market for $44.1 million. At June 30, 2008, our remaining authorization for future share repurchases was $232.8 million.
U.S. Consumer Information Solutions ("USCIS")
Total revenue was $228.6 million in the second quarter of 2008, a 9 percent decrease from the second quarter of 2007, due to continued weakness in the U.S. economy which affected each of the USCIS businesses. Operating margin for USCIS was 38.0 percent in the second quarter of 2008, down slightly from 38.6 percent in the first quarter of 2008. Operating margin in the second quarter of 2007 was 40.4 percent.
International
Total revenue was $137.5 million in the second quarter of 2008, a 19 percent increase from the second quarter of 2007. In local currency, revenue was up 10 percent when compared to the same period in the prior year. Compared to the second quarter of 2007:
-- Europe revenue was $46.4 million, up 3 percent in U.S. dollars (1 percent in local currency);
-- Latin America revenue was $61.1 million, up 38 percent in U.S. dollars (23 percent in local currency); and
-- Canada Consumer revenue was $30.0 million, up 15 percent in U.S. dollars (6 percent in local currency).
Operating margin for International was 30.6 percent in the second quarter of 2008 up from 29.0 percent in the second quarter of 2007.
TALX
Total revenue was $76.7 million and operating margin was 17.7 percent for the second quarter of 2008. During the quarter, total records in the employment database grew to 179.2 million, up 18 percent from a year ago.
North America Personal Solutions
Total revenue rose to $41.5 million, an 8 percent increase from the second quarter of 2007. Operating margin was 25.1 percent, up from 19.0 percent in the second quarter of 2007.
North America Commercial Solutions
Total revenue rose to $17.6 million, a 15 percent increase from the second quarter of 2007. Operating margin was 16.0 percent, up from 6.4 percent in the second quarter of 2007.
About Equifax
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, employment and income verification and human resources business process outsourcing services, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.
Customers have trusted Equifax for over 100 years to deliver innovative solutions with the highest integrity and reliability. Businesses - large and small - rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, HR/payroll services, and much more. We empower individual consumers to manage their personal credit information, protect their identity and maximize their financial well-being.
Headquartered in Atlanta, Georgia, Equifax Inc. employs approximately 7,000 people in 15 countries throughout North America, Latin America and Europe. Equifax is a member of Standard & Poor's (S&P) 500(R) Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX. www.equifax.com
Earnings Conference Call and Audio Webcast
In conjunction with this release, Equifax will host a conference call tomorrow, July 22, 2008, at 8:30 a.m. (EDT) 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.
Non-GAAP Financial Measures
This earnings release presents operating income and operating margin excluding acquisition-related amortization expense; net income and diluted EPS excluding acquisition-related amortization expense; and EBITDA, which we define as operating income adding back depreciation and amortization expense. 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 alternative measures of operating income, operating margin, net income or EPS as determined in accordance with GAAP. EBITDA as we have calculated it may not be comparable to similarly titled measures reported by other companies.
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 "Investors/GAAP/Non-GAAP Measures" on our website at www.equifax.com.
Forward-Looking Statements
Management believes certain statements in this earnings release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake any obligation to update these statements.
Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by Equifax, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), as well as from developments beyond Equifax's control, including but not limited to changes in worldwide and U.S. economic conditions that materially impact consumer spending, consumer debt and employment, changes in demand for Equifax's products and services, our ability to develop new products and services, pricing and other competitive pressures, our ability to achieve targeted cost efficiencies, risks relating to illegal third party efforts to access data, risks associated with our ability to complete and integrate acquisitions and other investments, changes in laws and regulations governing our business, including federal or state responses to identity theft concerns, and the outcome of our pending litigation. Certain additional factors are set forth in Equifax's Annual Report on Form 10-K for the year ended December 31, 2007 under Item 1A, "Risk Factors".
EQUIFAX
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
June 30,
2008 2007
(In millions, except per share amounts) (Unaudited)
Operating revenue $501.9 $454.5
Operating expenses:
Cost of services (exclusive of
depreciation and amortization below) 201.0 189.9
Selling, general and administrative
expenses 135.2 115.2
Depreciation and amortization 38.0 29.6
Total operating expenses 374.2 334.7
Operating income 127.7 119.8
Interest expense (17.3) (10.4)
Minority interests in earnings,
net of tax (1.8) (1.3)
Other income, net 0.9 1.1
Income before income taxes 109.5 109.2
Provision for income taxes (38.7) (39.1)
Net income $70.8 $70.1
Basic earnings per common share $0.55 $0.52
Weighted-average shares used in
computing basic earnings per share 129.0 134.9
Diluted earnings per common share $0.54 $0.51
Weighted-average shares used in computing
diluted earnings per share 131.5 138.6
Dividends per common share $0.04 $0.04
EQUIFAX
CONSOLIDATED STATEMENTS OF INCOME
Six Months Ended
June 30,
2008 2007
(In millions, except per share amounts) (Unaudited)
Operating revenue $1,005.0 $859.7
Operating expenses:
Cost of services (exclusive of
depreciation and amortization below) 403.8 359.2
Selling, general and administrative
expenses 271.4 212.8
Depreciation and amortization 75.9 51.0
Total operating expenses 751.1 623.0
Operating income 253.9 236.7
Interest expense (37.0) (17.8)
Minority interests in earnings,
net of tax (3.5) (2.7)
Other income, net 1.2 1.3
Income before income taxes 214.6 217.5
Provision for income taxes (78.1) (78.4)
Net income $136.5 $139.1
Basic earnings per common share $1.06 $1.07
Weighted-average shares used in
computing basic earnings per share 129.3 129.9
Diluted earnings per common share $1.04 $1.05
Weighted-average shares used in computing
diluted earnings per share 131.8 132.9
Dividends per common share $0.08 $0.08
EQUIFAX
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2008 2007
(In millions, except par values) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $72.6 $81.6
Trade accounts receivable, net of
allowance for doubtful accounts of
$11.9 and $8.9 at June 30, 2008 and
December 31, 2007, respectively 305.9 295.8
Prepaid expenses 31.7 25.8
Other current assets 23.1 21.8
Total current assets 433.3 425.0
Property and equipment:
Capitalized internal-use
software and system costs 313.5 292.2
Data processing equipment
and furniture 185.5 184.7
Land, buildings and improvements 119.8 89.5
Total property and equipment 618.8 566.4
Less accumulated depreciation
and amortization (333.5) (306.9)
Total property and equipment, net 285.3 259.5
Goodwill 1,852.3 1,834.6
Indefinite-lived intangible assets 95.6 95.7
Purchased intangible assets, net 726.7 764.5
Prepaid pension asset 73.8 72.2
Other assets, net 79.6 72.4
Total assets $3,546.6 $3,523.9
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current
maturities $127.3 $222.1
Accounts payable 31.6 31.1
Accrued expenses 67.4 79.4
Accrued salaries and bonuses 44.4 63.5
Deferred revenue 78.6 69.9
Other current liabilities 85.0 80.9
Total current liabilities 434.3 546.9
Long-term debt 1,213.2 1,165.2
Deferred income tax liabilities, net 275.1 277.1
Long-term pension and other postretirement
benefit liabilities 65.8 62.8
Other long-term liabilities 76.2 72.7
Total liabilities 2,064.6 2,124.7
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 - 189.5 and 188.5 at
June 30, 2008 and December 31, 2007,
respectively; Outstanding shares
- 128.6 and 129.7 at June 30, 2008
and December 31, 2007, respectively 236.6 235.6
Paid-in capital 1,066.1 1,040.8
Retained earnings 2,155.1 2,030.0
Accumulated other comprehensive loss (159.2) (170.5)
Treasury stock, at cost, 57.3 shares
and 55.1 shares at June 30, 2008 and
December 31, 2007, respectively (1,760.7) (1,679.0)
Stock held by employee benefits
trusts, at cost, 3.6 shares and
3.7 shares at June 30, 2008 and
December 31, 2007, respectively (55.9) (57.7)
Total shareholders' equity 1,482.0 1,399.2
Total liabilities and
shareholders' equity $3,546.6 $3,523.9
EQUIFAX
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
2008 2007
(In millions) (Unaudited)
Operating activities:
Net income $136.5 $139.1
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 75.9 51.0
Stock-based compensation expense 11.0 9.0
Tax effects of stock-based
compensation plans 2.5 10.8
Excess tax benefits from stock-based
compensation plans (1.6) (10.5)
Deferred income taxes (13.5) (1.1)
Changes in assets and liabilities,
excluding effects of acquisitions:
Accounts receivable, net (8.3) 0.5
Prepaid expenses and other
current assets (2.5) (17.9)
Other assets (3.1) (14.4)
Current liabilities, excluding debt (16.9) (15.4)
Other long-term liabilities,
excluding debt 6.8 2.0
Cash provided by operating activities 186.8 153.1
Investing activities:
Investment in equity affiliates (4.4) -
Capital expenditures (58.4) (31.8)
Acquisitions, net of cash acquired (11.0) (294.5)
Cash used in investing activities (73.8) (326.3)
Financing activities:
Net short-term (repayments) borrowings (94.9) 97.1
Net borrowings (repayments)
under long-term revolving
credit facilities 50.0 (121.6)
Proceeds from issuance of
long-term debt 2.2 544.6
Payments on long-term debt (3.1) -
Treasury stock purchases (81.1) (170.3)
Dividends paid (10.3) (10.0)
Proceeds from exercise of
stock options 13.5 22.4
Excess tax benefits from
stock-based compensation plans 1.6 10.5
Other (0.5) (5.0)
Cash (used in) provided by
financing activities (122.6) 367.7
Effect of foreign currency exchange
rates on cash and cash equivalents 0.6 1.9
(Decrease) increase in cash and
cash equivalents (9.0) 196.4
Cash and cash equivalents,
beginning of period 81.6 67.8
Cash and cash equivalents, end of
period $72.6 $264.2
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 June 30,
% of % of $ %
Operating revenue: 2008 Revenue 2007 Revenue Change Change
U.S. Consumer Information
Solutions $228.6 46% $250.0 55% $(21.4) -9%
International 137.5 27% 115.3 25% 22.2 19%
TALX 76.7 15% 35.3 8% 41.4 117%
North America Personal
Solutions 41.5 8% 38.6 9% 2.9 8%
North America Commercial
Solutions 17.6 4% 15.3 3% 2.3 15%
Total operating revenue $501.9 100% $454.5 100% $47.4 10%
(in millions) Three Months Ended June 30,
Operating Operating $ %
Operating income: 2008 Margin 2007 Margin Change Change
U.S. Consumer Information
Solutions $86.9 38.0% $101.0 40.4% $(14.1) -14%
International 42.0 30.6% 33.5 29.0% 8.5 25%
TALX 13.6 17.7% 4.5 12.8% 9.1 201%
North America Personal
Solutions 10.4 25.1% 7.4 19.0% 3.0 42%
North America Commercial
Solutions 2.8 16.0% 1.0 6.4% 1.8 187%
General Corporate Expense (28.0) nm (27.6) nm (0.4) -2%
Total operating income $127.7 25.4% $119.8 26.4% $7.9 7%
(in millions) Six Months Ended June 30,
% of % of $ %
Operating revenue: 2008 Revenue 2007 Revenue Change Change
U.S. Consumer Information
Solutions $461.8 46% $497.1 58% $(35.3) -7%
International 267.4 27% 221.0 26% 46.4 21%
TALX 156.3 16% 35.3 4% 121.0 343%
North America Personal
Solutions 84.6 8% 76.6 9% 8.0 11%
North America Commercial
Solutions 34.9 3% 29.7 3% 5.2 17%
Total operating revenue $1,005.0 100% $859.7 100% $145.3 17%
(in millions) Six Months Ended June 30,
Operating Operating $ %
Operating income: 2008 Margin 2007 Margin Change Change
U.S. Consumer Information
Solutions $177.0 38.3% $202.8 40.8% $(25.8) -13%
International 81.6 30.5% 65.9 29.8% 15.7 24%
TALX 26.3 16.8% 4.5 12.8% 21.8 483%
North America Personal
Solutions 21.5 25.4% 13.6 17.8% 7.9 58%
North America Commercial
Solutions 5.4 15.6% 2.3 7.9% 3.1 133%
General Corporate Expense (57.9) nm (52.4) nm (5.5) -11%
Total operating income $253.9 25.3% $236.7 27.5% $17.2 7%
nm - not meaningful
Common Questions & Answers (Unaudited)
(Dollars in millions)
2. Can you provide a further analysis of operating revenue in the product
and services lines, or geographic regions within each operating
segment?
Operating revenue consists of the following components:
(in millions) Three Months Ended June 30,
% of % of $ %
Operating revenue: 2008 Revenue 2007 Revenue Change Change
Online Consumer Information
Solutions $151.4 30% $165.4 36% $(14.0) -9%
Mortgage Reporting Solutions 17.9 4% 19.0 4% (1.1) -6%
Credit Marketing Services 35.7 7% 39.6 9% (3.9) -10%
Direct Marketing Services 23.6 5% 26.0 6% (2.4) -9%
Total U.S. Consumer
Information Solutions 228.6 46% 250.0 55% (21.4) -9%
Europe 46.4 9% 45.2 10% 1.2 3%
Latin America 61.1 12% 44.1 10% 17.0 38%
Canada Consumer 30.0 6% 26.0 5% 4.0 15%
Total International 137.5 27% 115.3 25% 22.2 19%
The Work Number 31.7 6% 15.5 4% 16.2 104%
Tax and Talent Management
Services 45.0 9% 19.8 4% 25.2 128%
Total TALX 76.7 15% 35.3 8% 41.4 117%
North America Personal
Solutions 41.5 8% 38.6 9% 2.9 8%
North America Commercial
Solutions 17.6 4% 15.3 3% 2.3 15%
Total operating revenue $501.9 100% $454.5 100% $47.4 10%
(in millions) Six Months Ended June 30,
% of % of $ %
Operating revenue: 2008 Revenue 2007 Revenue Change Change
Online Consumer Information
Solutions $308.2 31% $327.5 38% $(19.3) -6%
Mortgage Reporting Solutions 35.3 3% 36.5 4% (1.2) -3%
Credit Marketing Services 71.2 7% 80.0 10% (8.8) -11%
Direct Marketing Services 47.1 5% 53.1 6% (6.0) -11%
Total U.S. Consumer
Information Solutions 461.8 46% 497.1 58% (35.3) -7%
Europe 94.2 9% 87.4 10% 6.8 8%
Latin America 114.3 12% 83.8 10% 30.5 37%
Canada Consumer 58.9 6% 49.8 6% 9.1 18%
Total International 267.4 27% 221.0 26% 46.4 21%
The Work Number 68.0 7% 15.5 2% 52.5 338%
Tax and Talent Management
Services 88.3 9% 19.8 2% 68.5 347%
Total TALX 156.3 16% 35.3 4% 121.0 343%
North America Personal
Solutions 84.6 8% 76.6 9% 8.0 11%
North America Commercial
Solutions 34.9 3% 29.7 3% 5.2 17%
Total operating revenue $1,005.0 100% $859.7 100% $145.3 17%
Common Questions & Answers (Unaudited)
(Dollars in millions)
3. What drove the fluctuation in the effective tax rate?
Our effective income tax rate was 35.3% for the three months ended
June 30, 2008, down from 35.8% for the same period in 2007, due
primarily to a greater amount of favorable discrete items in 2008 than
in 2007; both related to our foreign tax credit utilization. The
effective income tax rate was 36.4% for the six months ended June 30,
2008, up from 36.1% for the same period in 2007 due primarily to
matters discussed above and favorable discrete items recorded during
the first quarter of 2007 related to state and foreign taxes,
which did not recur in 2008.
4. Can you provide depreciation and amortization by segment?
Depreciation and amortization are as follows:
Three Months Six Months
Ended Ended
June 30, June 30,
2008 2007 2008 2007
U.S. Consumer Information Solutions $11.3 $11.9 $22.6 $23.5
International 6.1 5.2 12.2 10.0
TALX 15.4 7.4 31.1 7.4
North America Personal Solutions 0.7 0.7 1.4 1.6
North America Commercial Solutions 1.5 1.4 2.8 2.8
General Corporate Expense 3.0 3.0 5.8 5.7
Total depreciation and amortization $38.0 $29.6 $75.9 $51.0
5. 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 June 30, 2008
Operating Revenue Operating Income
Amount % Amount %
Canada* $3.0 9% $1.2 10%
Europe 1.0 2% 0.1 1%
Latin America 7.0 15% 2.1 15%
$11.0 2% $3.4 3%
Six Months Ended June 30, 2008
Operating Revenue Operating Income
Amount % Amount %
Canada* $8.1 13% $3.3 14%
Europe 2.5 3% 0.5 2%
Latin America 13.6 17% 4.0 15%
$24.2 3% $7.8 3%
* Canada financial results include amounts reported in our North America
Commercial Solutions and International operating segments.
Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP
Financial Measures (Unaudited)
(Dollars in millions, except per share amounts)
A. Reconciliation of operating income to adjusted operating income,
excluding acquisition-related amortization expense and presentation of
adjusted operating margin:
Three Months Six Months
Ended Ended
June 30, June 30,
2008 2007 2008 2007
Revenue $501.9 $454.5 $1,005.0 $859.7
Operating income $127.7 $119.8 $253.9 $236.7
Acquisition-related amortization expense 21.9 14.6 43.6 22.4
Adjusted operating income, excluding
acquisition-related amortization expense $149.6 $134.4 $297.5 $259.1
Adjusted operating margin 29.8% 29.6% 29.6% 30.1%
B. Reconciliation of net income to net income, adjusted for
acquisition-related amortization expense and net income to diluted EPS,
adjusted for acquisition-related amortization expense:
Three Months Ended
June 30, $ %
2008 2007 Change Change
Net income $70.8 $70.1 $0.7 1%
Acquisition-related amortization
expense, net of tax 13.6 9.1 4.5 49%
Net income, adjusted for
acquisition-related amortization expense $84.4 $79.2 $5.2 7%
Diluted EPS, adjusted for
acquisition-related amortization expense $0.64 $0.57 $0.07 12%
Weighted-average shares used in computing
diluted EPS 131.5 138.6
Six Months Ended
June 30, $ %
2008 2007 Change Change
Net income $136.5 $139.1 $(2.6) -2%
Acquisition-related amortization
expense, net of tax 27.2 13.9 13.3 96%
Net income, adjusted for
acquisition-related amortization expense $163.7 $153.0 $10.7 7%
Diluted EPS, adjusted for
acquisition-related amortization expense $1.24 $1.15 $0.09 8%
Weighted-average shares used in computing
diluted EPS 131.8 132.9
C. Reconciliation of operating income to EBITDA (operating income before
depreciation and amortization expense):
Three Months Ended
June 30, $ %
2008 2007 Change Change
Operating income $127.7 $119.8 $7.9 7%
Depreciation and amortization expense 38.0 29.6 8.4 28%
EBITDA $165.7 $149.4 $16.3 11%
Six Months Ended
June 30, $ %
2008 2007 Change Change
Operating income $253.9 $236.7 $17.2 7%
Depreciation and amortization expense 75.9 51.0 24.9 49%
EBITDA $329.8 $287.7 $42.1 15%
Notes to Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures
Adjusted operating income and operating margin, excluding acquisition-related amortization expense - Management believes excluding the acquisition-related amortization expense from the calculation of operating income and margin, on a non-GAAP basis, is useful because management excludes acquisition-related amortization expense 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.
Net income and diluted EPS, adjusted for acquisition-related amortization expense - We calculate these financial measures by excluding acquisition-related amortization expense, net of tax, from the determination of net income and also 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 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.
EBITDA - We calculate EBITDA by adding back depreciation and amortization expense to operating income. EBITDA is not prepared in conformity with GAAP since it excludes depreciation and amortization expense, as well as interest expense, minority interest in earnings (net of tax), other income, net, and provision for income taxes from earnings. This non-GAAP financial measure should not be considered as an alternative to net income, operating income, operating margin, or cash provided by operating activities. Management believes that EBITDA is a useful supplemental measure to investors because it is consistent with how management evaluates our financial performance and is frequently used by securities analysts and other interested parties to evaluate companies in our industry. Additionally, management uses this measure as an important metric for forecasting and analyzing future periods, as well as evaluating future investing and financing decisions.
SOURCE Equifax Inc.
Released July 21, 2008