EXHIBIT 99

LOGO

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

 


 

NEWS RELEASE        

 

Contact:

 

Jeff Dodge

  

Mitch Haws

Investor Relations

  

Public Relations

404.885.8804

  

404.885.8093

jeff.dodge@equifax.com

  

mitch.haws@equifax.com

 

FOR IMMEDIATE RELEASE

 

Equifax Reports Record First Quarter Revenue

and Earnings Per Share Growth of 10 Percent

 

ATLANTA, April 24, 2003—Equifax Inc. (NYSE: EFX) today reported a strong start to 2003 driven by continued excellent performance in its North American business.

 

“These outstanding results reflect the dedication of Equifax people who continue to demonstrate our commitment and ability to serve our customers by utilizing information and technology which provides real-time answers to increasingly complex questions,” said Thomas F. Chapman, Equifax Chairman and CEO.

 

    First quarter revenues grew 16 percent over the prior year to $301.6 million, a record for the company;

 

    Net income was $43.8 million, an increase of five percent over the prior year;

 

    Earnings per share from continuing operations grew 10 percent to 33 cents;

 

    North American revenue grew 24 percent to $255.3 million with solid growth across all business units. Operating income in the quarter was $91.1 million.

 

 

A summary of operations by business segment follows (detailed information is included in the attachments to this press release).

 

North America

 

—U.S. credit reporting volume increased 19 percent, driven by mortgage reporting and increased penetration of existing accounts.

 

—Consumer Direct, which enlightens, enables and empowers consumers to manage their financial health, continued its growth with first quarter revenues of $14.8 million, nearly double the prior year’s revenue.

 

—Equifax Marketing Services generated revenues of $78.7 million in the quarter. “With our credit, direct and e-marketing solutions, we provide customers in multiple industries with a broad range of multi-channel solutions including targeted opt-in email lists, robust consumer and small business profiles, and real time account acquisition services,” said Chapman.

 

—Equifax also introduced its Small Business suite of products, providing tools to those who have commercial relationships with small businesses to make informed decisions in serving their customers and prospects. The database now contains comprehensive credit information on nearly 16 million small businesses. The suite of products has been enhanced to include a risk rating tool for account origination and portfolio management which leverages Equifax’s extensive analytics and modeling resources and a Small Business Credit Report, which can be viewed at the Equifax home page (www.equifax.com).

 

—Equifax also recently launched Decision Power Insight, an automated screening process for demand deposit account applicants that combines deposit account history with fraud and identification tools, credit data and models for cross selling.

 

International

 

Europe—First quarter revenue reached $30.7 million with operating margins of 9 percent. Following a successful pilot program, Equifax’s United Kingdom Passport Service was approved for implementation throughout all of the Passport Service’s offices. Equifax will provide identity verification for approximately 5 million passport applications each year.

 

 


 

Latin America—Latin American revenues totaled $15.6 million in the quarter, down from the prior year but reflecting growth in local currency. Operating margins were 18 percent. The Latin American business continues to benefit from its real-time decisioning, modeling, and analytic products.

 

Teleconference

 

Equifax’s quarterly teleconference to discuss results will be held today at 9 a.m. (EDT). The live audio Webcast of the speakers’ presentations will be available at www.equifax.com. Please note that Microsoft Media Player is required to access the Webcast. This can be downloaded from www.microsoft.com/windows/mediaplayer.

 

About Equifax

 

Equifax Inc. is the leading provider of critical information to businesses, consumers and the public sector. For businesses, it means faster and easier ways to find, approve and market to the right customers. For consumers, it means easier, instantaneous ways to buy products or services, and better insight into and management of their personal credit. For everyone, it means improved security against fraud, identity theft, and even terror. Equifax employs 5,000 people in 13 countries (United States, Canada, United Kingdom, Ireland, Spain, Portugal, Italy, Chile, Brazil, Argentina, Peru, Uruguay and El Salvador) and had $1.1 billion in revenue during 2002.

 

Statements in this press release that relate to Equifax’s future plans, objectives, expectations, performance, events and the like are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include changes in worldwide and U.S. economic conditions that materially impact consumer spending and consumer debt, changes in demand for the Company’s products and services, risks associated with the integration of acquisitions and other investments, and other factors discussed in the “forward-looking information” section and the “risk factor” section of the management’s discussion and analysis included in the Company’s annual report on Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission.

 


 

Exhibit 99

 

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

(In millions, except per share amounts)


  

THREE MONTHS ENDED MARCH 31,


 
    

2003


    

2002


 

Operating revenue

  

$

301.6

 

  

$

259.0

 

Costs and expenses:

                 

Costs of services

  

 

127.0

 

  

 

104.5

 

Selling, general and administrative expenses

  

 

70.7

 

  

 

55.9

 

Depreciation

  

 

3.9

 

  

 

3.7

 

Amortization

  

 

19.3

 

  

 

15.6

 

    


  


Total costs and expenses

  

 

220.9

 

  

 

179.7

 

Operating income

  

 

80.7

 

  

 

79.3

 

Other income, net

  

 

3.8

 

  

 

1.4

 

Minority interests in earnings, net of tax

  

 

(0.6

)

  

 

(0.7

)

Interest expense

  

 

(11.7

)

  

 

(10.0

)

    


  


Income from continuing operations before income taxes

  

 

72.2

 

  

 

70.0

 

Provision for income taxes

  

 

(27.1

)

  

 

(28.0

)

    


  


Income from continuing operations

  

 

45.1

 

  

 

42.0

 

    


  


Discontinued operations (1):

                 

Loss from discontinued operations, net of income tax benefit $0.2 in 2002

  

 

(1.3

)

  

 

(0.3

)

    


  


Net income

  

$

43.8

 

  

$

41.7

 

    


  


Per common share (basic):

                 

Income from continuing operations

  

$

0.33

 

  

$

0.31

 

Discontinued operations

  

 

(0.01

)

  

 

(0.00

)

    


  


Net income

  

$

0.32

 

  

$

0.31

 

    


  


Shares used in computing basic earnings per share

  

 

135.4

 

  

 

136.5

 

    


  


Per common share (diluted):

                 

Income from continuing operations

  

$

0.33

 

  

$

0.30

 

Discontinued operations

  

 

(0.01

)

  

 

(0.00

)

    


  


Net income

  

$

0.32

 

  

$

0.30

 

    


  


Shares used in computing diluted earnings per share

  

 

136.8

 

  

 

139.3

 

    


  


Dividends per common share

  

$

0.020

 

  

$

0.020

 

    


  


 

(1)—During the third quarter of 2002, the Company made the decision to exit its commercial business in Spain, and this business is now held for sale. The results of the Spain commercial business are classified as Discontinued Operations in 2002 & 2003.


 

SEGMENT REVENUE & OPERATING INCOME

 

    

THREE MONTHS ENDED MARCH 31,


 

Equifax revenue:

  

2003


    

2002


 

North America

  

$

255.3

 

  

$

206.2

 

Europe

  

 

30.7

 

  

 

30.7

 

Latin America

  

 

15.6

 

  

 

19.7

 

Other

  

 

—  

 

  

 

2.4

 

    


  


    

$

301.6

 

  

$

259.0

 

    


  


Equifax operating income:

                 

North America

  

$

91.1

 

  

$

82.5

 

Europe

  

 

2.8

 

  

 

2.8

 

Latin America

  

 

2.8

 

  

 

4.1

 

Other

  

 

—  

 

  

 

2.4

 

Corporate Expense

  

 

(16.0

)

  

 

(12.5

)

    


  


    

$

80.7

 

  

$

79.3

 

    


  



 

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

(In millions)


  

THREE MONTHS ENDED MARCH 31,


 
    

2003


    

2002


 

Cash flows from operating activities:

                 

Net income

  

$

43.8

 

  

$

41.7

 

Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:

                 

Loss from discontinued operations

  

 

1.3

 

  

 

0.3

 

Depreciation and amortization

  

 

23.2

 

  

 

19.3

 

Deferred income taxes

  

 

3.0

 

  

 

3.2

 

Changes in assets and liabilities, excluding effects of acquisitions:

                 

Accounts receivable, net

  

 

(10.6

)

  

 

9.0

 

Current liabilities, excluding debt

  

 

(6.0

)

  

 

(19.7

)

Other current assets

  

 

0.8

 

  

 

9.0

 

Other long-term liabilities, excluding debt

  

 

(0.2

)

  

 

(2.9

)

Other assets

  

 

(26.9

)

  

 

(22.1

)

    


  


Cash provided by operating activities

  

 

28.4

 

  

 

37.8

 

    


  


Investing activities:

                 

Additions to property and equipment

  

 

(3.8

)

  

 

(0.9

)

Additions to other assets, net

  

 

(9.0

)

  

 

(4.5

)

Acquisitions, net of cash acquired

  

 

(12.6

)

  

 

(22.5

)

Deferred payments on prior year acquisitions

  

 

(0.6

)

  

 

(3.1

)

    


  


Cash used by investing activities

  

 

(26.0

)

  

 

(31.0

)

    


  


Financing activities:

                 

Net short-term (payments) borrowings

  

 

6.5

 

  

 

(6.5

)

Additions to long-term debt

  

 

5.1

 

  

 

6.4

 

Payments on long-term debt

  

 

(0.5

)

  

 

—  

 

Treasury stock purchases

  

 

(19.4

)

  

 

(30.1

)

Dividends paid

  

 

(2.9

)

  

 

(2.9

)

Proceeds from exercise of stock options

  

 

2.7

 

  

 

23.1

 

Other

  

 

0.3

 

  

 

0.2

 

    


  


Cash used by financing activities

  

 

(8.2

)

  

 

(9.8

)

    


  


Effect of foreign currency exchange rates on cash

  

 

0.7

 

  

 

(0.4

)

Cash provided (used) by discontinued operations

  

 

0.4

 

  

 

(0.2

)

    


  


Decrease in cash and cash equivalents

  

 

(4.7

)

  

 

(3.6

)

Cash and cash equivalents, beginning of year

  

 

30.5

 

  

 

33.2

 

    


  


Cash and cash equivalents, end of year

  

$

25.8

 

  

$

29.6

 

    


  


 


EQUIFAX INC.

CONSOLIDATED BALANCE SHEETS

 

(In millions, except par values)


  

March 31, 2003


    

December 31, 2002


 
    

(Unaudited)

        

ASSETS

                 

Current Assets:

                 

Cash and cash equivalents

  

$

25.8

 

  

$

30.5

 

Trade accounts receivable, net of allowance for doubtful

                 

accounts of $18.1 in 2003 and $17.3 in 2002

  

 

195.3

 

  

 

179.8

 

Other receivables

  

 

17.1

 

  

 

20.8

 

Deferred income tax assets

  

 

20.5

 

  

 

20.9

 

Other current assets

  

 

33.1

 

  

 

33.6

 

    


  


Total current assets

  

 

291.8

 

  

 

285.6

 

    


  


Property and Equipment:

                 

Land, buildings and improvements

  

 

29.9

 

  

 

29.3

 

Data processing equipment and furniture

  

 

108.4

 

  

 

115.9

 

    


  


    

 

138.3

 

  

 

145.2

 

Less accumulated depreciation

  

 

88.6

 

  

 

94.6

 

    


  


    

 

49.7

 

  

 

50.6

 

    


  


Goodwill

  

 

666.1

 

  

 

650.5

 

Purchased Data Files

  

 

272.5

 

  

 

265.4

 

Other Assets

  

 

267.9

 

  

 

247.3

 

Assets of Discontinued Operations (1)

  

 

7.6

 

  

 

7.5

 

    


  


    

$

1,555.6

 

  

$

1,506.9

 

    


  


LIABILITIES AND SHAREHOLDERS' EQUITY

                 

Current Liabilities:

                 

Short-term debt and current maturities

  

$

243.0

 

  

$

233.9

 

Accounts payable

  

 

14.2

 

  

 

16.5

 

Accrued salaries and bonuses

  

 

18.3

 

  

 

31.0

 

Other current liabilities

  

 

160.6

 

  

 

146.5

 

    


  


Total current liabilities

  

 

436.1

 

  

 

427.9

 

Long-Term Debt

  

 

693.8

 

  

 

690.6

 

Deferred Revenue

  

 

10.9

 

  

 

11.7

 

Deferred Income Tax Liabilities

  

 

29.7

 

  

 

25.9

 

Other Long-Term Liabilities

  

 

124.0

 

  

 

122.6

 

Liabilities of Discontinued Operations (1)

  

 

6.2

 

  

 

7.2

 

    


  


Total liabilities

  

 

1,300.7

 

  

 

1,285.9

 

    


  


Commitments and Contingencies

                 

Shareholders' Equity:

                 

Preferred stock, $0.01 par value: Authorized—10.0; Issued—none

  

 

—  

 

  

 

—  

 

Common stock, $1.25 par value:

                 

Authorized shares—300.0

                 

Issued shares—180.1 in 2003 and 180.1 in 2002

                 

Outstanding shares—135.0 in 2003 and 135.7 in 2002

  

 

225.1

 

  

 

225.1

 

Paid-in capital

  

 

413.0

 

  

 

412.0

 

Retained earnings

  

 

966.3

 

  

 

925.4

 

Accumulated other comprehensive income

  

 

(350.4

)

  

 

(359.4

)

Treasury stock, at cost, 39.0 shares in 2003 and 38.1 shares in 2002

  

 

(919.1

)

  

 

(899.7

)

Stock held by employee benefits trusts, at cost, 6.1 shares in 2003 and 6.3 shares in 2002

  

 

(80.0

)

  

 

(82.4

)

    


  


Total shareholders' equity

  

 

254.9

 

  

 

221.0

 

    


  


    

$

1,555.6

 

  

$

1,506.9

 

    


  


 

(1)—During the third quarter of 2002, the Company made the decision to exit its commercial business in Spain, and this business is now held for sale. The results of the Spain commercial business are classified as Discontinued Operations in 2002 & 2003.


 

Common Questions & Answers (Unaudited)—March 31, 2003

(Dollars in Millions, except per share amounts)

 

1.   Can you provide a further breakdown of revenue in the Equifax North America segment?

Equifax North America revenue consists of the following components:

 

    

2002


         

2003


Equifax North America Revenue:

  

1st Qtr


  

2nd Qtr


  

3rd Qtr


  

4th Qtr


  

12 Months


         

1st Qtr


U.S. Consumer and Commercial Services

  

$

109.1

  

$

109.6

  

$

119.9

  

$

116.8

  

$

455.4

         

$

124.6

Mortgage Services

  

 

11.1

  

 

11.8

  

 

16.0

  

 

16.3

  

 

55.2

         

 

16.7

Canadian Operations

  

 

19.1

  

 

19.8

  

 

19.4

  

 

19.1

  

 

77.4

         

 

20.5

    

  

  

  

  

         

Total North America Information Services

  

 

139.3

  

 

141.2

  

 

155.3

  

 

152.2

  

 

588.0

         

 

161.8

    

  

  

  

  

         

Credit Marketing Services

  

 

38.6

  

 

41.9

  

 

42.2

  

 

41.5

  

 

164.2

         

 

40.3

Direct Marketing Services

  

 

20.4

  

 

21.3

  

 

30.1

  

 

38.7

  

 

110.4

         

 

38.3

    

  

  

  

  

         

Total Marketing Services

  

 

59.0

  

 

63.2

  

 

72.3

  

 

80.2

  

 

274.7

         

 

78.7

    

  

  

  

  

         

Consumer Direct

  

 

7.8

  

 

8.7

  

 

11.0

  

 

12.0

  

 

39.5

         

 

14.8

    

  

  

  

  

         

    

$

206.2

  

$

213.1

  

$

238.6

  

$

244.4

  

$

902.2

         

$

255.3

    

  

  

  

  

         

 

2.   Can you provide a breakout of costs of services and SG&A as a percent of sales?

Operating expenses as a percent of revenue are as follows for continuing operations:

 

    

1st Qtr


Operating Expenses:

  

2002


  

2003


Costs of services

  

40%

  

42%

Selling, general and administrative

  

22%

  

23%

Depreciation & amortization

  

  7%

  

  8%

    
  
    

69%

  

73%

    
  

 

3.   Can you give depreciation and amortization by segment?

Depreciation and amortization is as follows:

 

    

2002


         

2003


Depreciation & Amortization:

  

1st Qtr


  

2nd Qtr


  

3rd Qtr


  

4th Qtr


  

12 Months


         

1st Qtr


Equifax North America

  

$

12.0

  

$

12.3

  

$

13.7

  

$

15.7

  

$

53.7

         

$

16.2

Equifax Europe

  

 

3.7

  

 

3.5

  

 

2.3

  

 

3.4

  

 

12.8

         

 

2.6

Equifax Latin America

  

 

1.5

  

 

1.5

  

 

1.4

  

 

1.1

  

 

5.5

         

 

1.3

General Corporate

  

 

2.1

  

 

2.1

  

 

2.1

  

 

2.2

  

 

8.5

         

 

3.1

    

  

  

  

  

         

    

$

19.3

  

$

19.4

  

$

19.5

  

$

22.4

  

$

80.5

         

$

23.2

    

  

  

  

  

         


Common Questions & Answers (Unaudited)—March 31, 2003

(Dollars in Millions, except per share amounts)

 

4.   What was the currency impact on the foreign operations?

The favorable (unfavorable) US dollar impact on revenue and operating income is as follows:

 

    

2003 Revenue


           

2003 Operating

Income


 
    

1st Qtr


    

%


           

1st Qtr


    

%


 

Canada

  

$

1.1

 

  

5.8

%

         

$

0.3

 

  

5.6

%

Europe

  

 

3.9

 

  

12.8

%

         

 

0.3

 

  

12.5

%

Latin America

  

 

(5.1

)

  

-26.1

%

         

 

(1.0

)

  

-23.4

%

    


  

         


  

    

$

(0.1

)

  

0.0

%

         

$

(0.3

)

  

-0.3

%

    


  

         


  

 

5.   What was your cash flow from operations in 2003 and 2002?

Cash provided by operating activities was approximately $28 million and $38 million for the first quarter of 2003 and 2002, respectively. The decrease was due primarily to the growth in trade accounts receivable.

 

6.   What was the level of debt?

Total debt was comprised of the following:

 

    

Mar 31


  

Jun 30


  

Sep 30


  

Dec 31


  

Mar 31


    

2002


  

2002


  

2002


  

2002


  

2003


Senior Notes and Debentures—Long-term

  

$

598.0

  

$

398.2

  

$

398.3

  

$

647.8

  

$

648.0

Senior Notes and Debentures—Current

  

 

—  

  

 

199.9

  

 

199.9

  

 

199.9

  

 

202.0

Revolving Credit Facility

  

 

97.9

  

 

137.8

  

 

234.0

  

 

21.8

  

 

27.2

Other Long-term Obligations

  

 

3.4

  

 

11.4

  

 

18.3

  

 

21.0

  

 

18.6

Other Short-term Debt & Current Maturities

  

 

54.4

  

 

56.5

  

 

44.5

  

 

34.0

  

 

41.4

    

  

  

  

  

    

$

753.7

  

$

803.8

  

$

895.0

  

$

924.5

  

$

936.8

    

  

  

  

  


 

Common Questions & Answers (Unaudited)—March 31, 2003

(Dollars in Millions, except per share amounts)

 

7.   What was the level of capital spending ?

Capital expenditures, excluding property and equipment and other assets purchased in acquisitions, were as follows:

 

    

2002


       

2003


    

1st Qtr


  

2nd Qtr


  

3rd Qtr


  

4th Qtr


  

12 Months


       

1st Qtr


Capital Expenditures

  

$

5.4

  

$

11.0

  

$

19.0

  

$

21.7

  

$

57.1

       

$

12.8

    

  

  

  

  

       

 

The Company still expects the level of capital spending for the year 2003 to fall between $45.0 million and $55.0 million.

 

8.   Why did the first quarter’s effective tax rate decline from 39% in the fourth quarter to 38%?

The Company has been able to reduce its tax rate 1% by achieving a lower overall effective state tax rate. The Company has implemented state tax planning strategies related to the apportionment of state income taxes and franchise taxes. The reduced state income taxes payable is the primary reason for the one percent reduction in the overall effective state tax rate.

 

9.   What is the current authorization amount for stock buyback?

As of March 31, 2003, approximately $202.7 million remained authorized for future share repurchases. The Company spent $19.4 million on Treasury Stock purchases during the 1st Quarter 2003 compared with $30.1 million during the 1st Quarter 2002.

 

10.   Why did Corporate Expense increase from $12.5 million for the 1st Quarter 2002 to $16.0 million for the 1st Quarter 2003?

The increases are caused primarily by increased legal reserves, corporate reserves, and consulting fees.

 

11.   What was the working capital for the quarter?

Working capital, or current assets less current liabilities was ($144.3) at March 31, 2003 and ($142.3) at December 31, 2002. Without short-term debt and current maturities of $243.0 million at March 31, 2003 and $233.9 million at December 31, 2002, the adjusted working capital grew from $91.6 million at December 31, 2002 to $98.7 million at March 31, 2003 due primarily to the increase in trade receivables.