EXHIBIT 99.1
PRO FORMA CONSOLIDATED FINANCIAL DATA
On June 11, 2001, the Board of Directors of Equifax Inc. ("Equifax") formally
approved the spin-off of its Payment Services Business ("Certegy") and set the
distribution ratio. The spin-off will take place on July 7, 2001 through a
special dividend of all outstanding shares of common stock of Certegy, a wholly-
owned subsidiary, to Equifax shareholders of record on June 27, 2001. Equifax
shareholders will receive one share of Certegy common stock for every two shares
of Equifax common stock held and will receive a cash payment in lieu of Certegy
fractional shares.
On May 25, 2001, Equifax purchased the remaining 40.7% of Unnisa Ltda, a card
processing business in Brazil, for approximately $55 million. Unnisa is part of
Certegy.
The following unaudited pro forma consolidated financial statements are
presented as if the acquisition and the spin-off had taken place on March 31,
2001 for the pro forma consolidated balance sheet and January 1, 2000 for the
pro forma consolidated statements of income. In the opinion of management, they
include all material adjustments necessary to reflect, on a pro forma basis, the
impact of material transactions contemplated by the spin-off on Equifax's
historical financial information. The adjustments are described in Note 2 of the
Notes to the Pro Forma Consolidated Financial Data (Unaudited) and are
referenced in the "Pro Forma Adjustments" columns of the financial statements.
This pro forma consolidated financial data should be read in conjunction with
the financial statements and the notes thereto included in Equifax's Annual
Report on Form 10-K for the year ended December 31, 2000 and in Equifax's
Quarterly Report on Form 10-Q for the three months ended March 31, 2001.
Exhibit 99.1(a)
PRO FORMA CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
EQUIFAX INC.
Quarter Ended March 31, 2001
---------------------------------------------------------------------------------------
Pro Forma Adjustments:
---------------------------------------------------
(In thousands, except
per share amounts) Historical Unnisa Option Other Certegy Pro Forma
- --------------------- ---------- ------------- ----------- ----------- -----------
Operating revenue $285,208 $ - $ - $ - $ 285,208
Operating expenses 214,936 - (1,114)(2b) - 213,822
-------- ----------- --------- ---------- -----------
Operating income 70,272 - 1,114 - 71,386
Other income, net 1,607 - - - 1,607
Interest expense (17,395) (900)(2a) 4,469 (2b) - (13,826)
-------- ----------- --------- ---------- -----------
Income from continuing
operations before
income taxes and
minority interests 54,484 (900) 5,583 - 59,167
Provision for income taxes 22,063 (371)(2a) 2,300 (2b) - 23,992
Minority interests in earnings,
net of tax (934) - - - (934)
-------- ----------- --------- ---------- -----------
Income from continuing
operations 31,487 (529) 3,283 - 34,241
Discontinued operations,
net of tax 16,615 - - (16,615) (2c) -
-------- ----------- --------- ---------- -----------
Net income $ 48,102 $ (529) $ 3,283 $ (16,615) $ 34,241
======== =========== ========= ========== ===========
Per common share (basic):
Income from continuing
operations $ 0.23 $ 0.00 $ 0.02 $ - $ 0.25
Discontinued operations,
net of tax 0.12 - - (0.12) -
-------- ----------- --------- ---------- -----------
Net income $ 0.35 $ 0.00 $ 0.02 $ (0.12) $ 0.25
======== =========== ========= ========== ===========
Shares used in computing
basic earnings per share 136,007 136,007 136,007 136,007 136,007
======== =========== ========= ========== ===========
Per common share (diluted):
Income from continuing
operations $ 0.23 $ 0.00 $ 0.02 $ - $ 0.25
Discontinued operations,
net of tax 0.12 - - (0.12) -
-------- ----------- --------- ---------- -----------
Net income $ 0.35 $ 0.00 $ 0.02 $ (0.12) $ 0.25
======== =========== ========= ========== ===========
Shares used in computing
diluted earnings per share 137,612 137,612 137,612 137,612 137,612
======== =========== ========= ========== ===========
Exhibit 99.1(a)
PRO FORMA CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
EQUIFAX INC.
Year Ended December 31, 2000
---------------------------------------------------------------------------
Pro Forma Adjustments:
---------------------------------------------
(In thousands, except per share amounts) Historical Unnisa Option Other Certegy Pro Forma
- ---------------------------------------- ---------- ------------- ----------- --------- ----------
Operating revenue $1,189,205 $ - $ - $ - $1,189,205
Operating expenses 880,579 - (3,347)(2b) - 877,232
---------- -------- -------- --------- ----------
Operating income 308,626 - 3,347 - 311,973
Other income, net 3,667 - - - 3,667
Interest expense (73,721) (3,601)(2a) 17,875 (2b) - (59,447)
---------- -------- -------- --------- ----------
Income from continuing operations before
income taxes and minority interests 238,572 (3,601) 21,222 - 256,193
Provision for income taxes 100,515 (1,564)(2a) 9,215 (2b) - 108,166
Minority interests in earnings, net of tax (7,076) - - - (7,076)
---------- -------- -------- --------- ----------
Income from continuing operations 130,981 (2,037) 12,007 - 140,951
Discontinued operations, net of tax 97,041 - - (97,041)(2c) -
---------- -------- -------- --------- ----------
Net income $ 228,022 $(2,037) $ 12,007 $ (97,041) $ 140,951
========== ======== ======== ========= ==========
Per common share (basic):
Income from continuing operations $ 0.97 $ (0.02) $ 0.09 $ - $ 1.05
Discontinued operations, net of tax 0.72 - - (0.72) -
---------- -------- -------- --------- ----------
Net income $ 1.70 $ (0.02) $ 0.09 $ (0.72) $ 1.05
========== ======== ======== ========= ==========
Shares used in computing basic earnings per share 134,400 134,400 134,400 134,400 134,400
========== ======== ======== ========= ==========
Per common share (diluted):
Income from continuing operations $ 0.96 $ (0.01) $ 0.09 $ - $ 1.04
Discontinued operations, net of tax 0.71 - - (0.71) -
---------- -------- -------- --------- ----------
Net income $ 1.68 $ (0.01) $ 0.09 $ (0.71) $ 1.04
========== ======== ======== ========= ==========
Shares used in computing diluted earnings per share 136,016 136,016 136,016 136,016 136,016
========== ======== ======== ========= ==========
Exhibit 99.1(b)
PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED)
EQUIFAX INC.
March 31, 2001
--------------------------------------------------------------------------------
Pro Forma Adjustments:
-------------------------------------------
(In thousands) Historical Unnisa Option Other Dividend Pro Forma
- -------------- ------------- ------------- ---------- ---------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 25,387 $ - $ - $ - $ 25,387
Trade accounts receivable, net 226,523 - - - 226,523
Other receivables 67,346 - - - 67,346
Deferred income tax assets 18,278 - - - 18,278
Other current assets 38,065 - - - 38,065
----------- -------- ---------- ---------- -----------
Total current assets 375,599 - - - 375,599
----------- -------- ---------- ---------- -----------
PROPERTY AND EQUIPMENT:
Land, buildings and improvements 32,183 - - - 32,183
Data processing equipment and furniture 149,135 - - - 149,135
----------- -------- ---------- ---------- -----------
181,318 - - - 181,318
Less accumulated depreciation 119,144 - - - 119,144
----------- -------- ---------- ---------- -----------
62,174 - - - 62,174
----------- -------- ---------- ---------- -----------
GOODWILL 538,482 - - - 538,482
----------- -------- ---------- ---------- -----------
PURCHASED DATA FILES 213,855 - - - 213,855
----------- -------- ---------- ---------- -----------
OTHER ASSETS 340,412 - (30,000)(2b) - 310,412
----------- -------- ---------- ---------- -----------
NET ASSETS OF DISCONTINUED OPERATIONS 396,554 55,400(2a) (245,000)(2b) (206,954)(2c) 0
----------- -------- ---------- ---------- -----------
$ 1,927,076 $ 55,400 $ (275,000) $ (206,954) $ 1,500,522
=========== ======== ========== ========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt and current maturities of
long-term debt $ 59,880 $ - $ - $ - $ 59,880
Accounts payable 23,333 - - - 23,333
Accrued salaries and bonuses 15,378 - - - 15,378
Income taxes payable 16,735 - - - 16,735
Other current liabilities 133,488 - - - 133,488
----------- -------- ---------- ---------- -----------
Total current liabilities 248,814 - - - 248,814
----------- -------- ---------- ---------- -----------
LONG-TERM DEBT, LESS CURRENT MATURITIES 978,967 55,400(2a) (275,000)(2b) - 759,367
----------- -------- ---------- ---------- -----------
LONG-TERM DEFERRED REVENUE 28,027 - - - 28,027
----------- -------- ---------- ---------- -----------
DEFERRED INCOME TAX LIABILITIES 80,620 - - - 80,620
----------- -------- ---------- ---------- -----------
OTHER LONG-TERM LIABILITIES 132,902 - - - 132,902
----------- -------- ---------- ---------- -----------
SHAREHOLDERS' EQUITY:
Common stock 220,495 - - - 220,495
Paid-in capital 342,026 - - - 342,026
Retained earnings 937,339 - - (206,954)(2c) 730,385
Accumulated other comprehensive loss (172,931) - - - (172,931)
Treasury stock, at cost (778,901) - - - (778,901)
Stock held by employee benefits trusts, at cost, (90,282) - - - (90,282)
----------- -------- ---------- ---------- -----------
Total shareholders' equity 457,746 - - (206,954) 250,792
----------- -------- ---------- ---------- -----------
$ 1,927,076 $ 55,400 $ (275,000) $ (206,954) $ 1,500,522
=========== ======== ========== ========== ===========
Exhibit 99.1(c)
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL DATA (UNAUDITED)
EQUIFAX INC.
Note 1. The accompanying unaudited Pro Forma Consolidated Financial Data
reflects all adjustments that, in the opinion of management, are necessary to
present fairly the Company's pro forma financial position at March 31, 2001, and
pro forma results of operations for the three months ended March 31, 2001 and
the year ended December 31, 2000. The historical information presented in the
pro forma financial data reflects Certegy as a discontinued operation.
Note 2. Following are explanations of the pro forma adjustments in the
accompanying pro forma consolidated financial data. Balance sheet adjustments
assume the transactions noted had occurred on March 31, 2001. Income statement
adjustments assume the transactions noted had occurred at the beginning of the
period presented on the income statement.
(a) To reflect the additional debt and interest assumed by the Company
associated with the May 2001 purchase of the remaining 40.7%
interest in Unnisa, a credit card processing business in Brazil. The
assets related to this acquisition are adjusted to "net assets of
discontinued operations" since they are part of the Certegy net
assets.
(b) To reflect an estimated $30 million transfer of the Company's
prepaid pension asset to Certegy and to reflect an increase in
pension income due to Certegy no longer benefiting from the over-
funded status of the Equifax pension plan. To also reflect Certegy's
assumption of $275 million of the Company's long-term debt and the
related reduction in interest expense.
(c) To eliminate the historical operations of Certegy, and to record
the dividend of the net assets of Certegy to shareholders.
EXHIBIT 99.1(d)
RESTATED CONSOLIDATED FINANCIAL DATA
The following unaudited consolidated statements of income for the years ended
December 31, 1998, 1999, 2000 (by quarter), and for the three month period
ended March 31, 2001 have been prepared from the historical statements of
Equifax Inc. ("Equifax"), but have been restated to show the historical
operations of Certegy as discontinued. This financial data should be read in
conjunction with the financial statements and the notes thereto included in
Equifax's Annual Report on Form 10-K for the year ended December 31, 2000 and in
Equifax's Quarterly Report on Form 10-Q for the periods ended March 31, 2000,
June 30, 2000, September 30, 2000 and March 31, 2001.
Exhibit 99.1(d)
RESTATED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
EQUIFAX INC. (RESTATED)
(In thousands, except per share amounts)
1998 1999 2000 2001
---------- ---------- ------------------------------------------------------ --------
Total Total Total
Year Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1
---------- ---------- -------- -------- -------- -------- ---------- --------
Revenue.............................. $1,055,809 $1,092,704 $273,824 $305,540 $323,942 $285,899 $1,189,205 $285,208
Operating Expenses................... 793,876 806,406 211,317 234,146 238,229 196,887 880,579 214,936
---------- ---------- -------- -------- -------- -------- ---------- --------
Operating Income..................... 261,933 286,298 62,507 71,394 85,713 89,012 308,626 70,272
Interest Expense................... (42,168) (60,070) (16,142) (19,600) (20,605) (17,374) (73,721) (17,395)
Other Income....................... 4,680 10,761 1,039 1,768 24 836 3,667 1,607
---------- ---------- -------- -------- -------- -------- ---------- --------
Income Before Taxes and
Minority Interests............... 224,445 236,989 47,404 53,562 65,132 72,474 238,572 54,484
Tax Expense........................ 90,689 92,646 19,984 22,612 27,485 30,434 100,515 22,063
Minority Interest Expense.......... (5,498) (7,270) (1,379) (1,484) (1,833) (2,380) (7,076) (934)
---------- ---------- -------- -------- -------- -------- ---------- --------
Income From Continuing Operations.... 128,258 137,073 26,041 29,466 35,814 39,660 130,981 31,487
Discontinued Operations,
Net of Income Taxes................ 65,175 78,804 16,186 23,612 28,503 28,740 97,041 16,615
---------- ---------- -------- -------- -------- -------- ---------- --------
Net Income........................... $ 193,433 $ 215,877 $ 42,227 $ 53,078 $ 64,317 $ 68,400 $ 228,022 $ 48,102
========== ========== ======== ======== ======== ======== ========== ========
Per Common Share (Basic):
Income From Continuing Operations.. $ 0.91 $ 1.00 $ 0.19 $ 0.22 $ 0.27 $ 0.29 $ 0.97 $ 0.23
Discontinued Operations,
Net of Income Taxes................ 0.46 0.57 0.12 0.18 0.21 0.21 0.72 0.12
---------- ---------- -------- -------- -------- -------- ---------- --------
Net Income......................... $ 1.37 $ 1.57 $ 0.32 $ 0.40 $ 0.48 $ 0.51 $ 1.70 $ 0.35
========== ========== ======== ======== ======== ======== ========== ========
Shares Used in Computing
Basic Earnings Per Share........... 141,397 137,457 133,917 134,089 134,355 135,239 134,400 136,007
Per Common Share (Diluted):
Income From Continuing
Operations....................... $ 0.89 $ 0.98 $ 0.19 $ 0.22 $ 0.26 $ 0.29 $ 0.96 $ 0.23
Discontinued Operations,
Net of Income Taxes................ 0.45 0.56 0.12 0.17 0.21 0.21 0.71 0.12
---------- ---------- -------- -------- -------- -------- ---------- --------
Net Income........................... $ 1.34 $ 1.55 $ 0.31 $ 0.39 $ 0.47 $ 0.50 $ 1.68 $ 0.35
========== ========== ======== ======== ======== ======== ========== ========
Shares Used in Computing
Diluted Earnings Per Share......... 144,403 139,603 135,150 135,777 135,796 137,280 136,016 137,612
NOTE: The effective income tax rates (including minority interest expense) for continuing operations were
41.4%, 40.3% and 43.4% in 1998, 1999 and 2000, respectively. The increase in 2000 was attributable
to non-deductible goodwill associated with the divestiture of the Company's Risk Management businesses.