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Exhibit 99.1


EARNINGS RELEASE AND ATTACHMENTS


LOGO

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

NEWS RELEASE

Contact:

 

 

Jeff Dodge
Investor Relations
(404) 885-8804
jeff.dodge@equifax.com

 

David Rubinger
Media Relations
(404) 885-8555
david.rubinger@equifax.com


Equifax Reports Record First Quarter Revenue of $314 million
and Earnings Per Share of 38 Cents

Atlanta, April 22, 2004—Equifax Inc. (NYSE: EFX) today reported record revenue of $314 million in the first quarter of 2004, an increase of 4 percent over the first quarter of 2003. Net income from continuing operations was $51 million, up 13 percent. Earnings per share from continuing operations jumped 15 percent to 38 cents, exceeding analysts' average estimate.

"Equifax is off to an outstanding start in 2004," said Thomas F. Chapman, Equifax chairman and CEO. "We continue to execute our growth strategy and deliver exceptional results. Personal Solutions, formerly Consumer Direct, delivered record-setting revenues and profits. Within our North American business, we are growing and increasing our share with our largest customers while recording major new wins. Small business credit information produced record revenue as well, as we further integrate analytics into our offerings. And our businesses in Europe and Latin America had one of their strongest quarters ever for growth and profitability."

Highlights for the quarter...


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.

Equifax has presented in this press release and will discuss during the teleconference certain non-GAAP financial measures as defined by the Securities and Exchange Commission. As required by SEC rules, a reconciliation of such non-GAAP financial measures to the most comparable GAAP measures is provided in the "Common Questions & Answers (Unaudited)" portion of this press release. This information can also be found under the heading "Non-GAAP Financial Measures" in the Investor Center on the company's website at www.equifax.com.

About Equifax

Equifax Inc. is a global leader in turning information into intelligence. For businesses, Equifax provides faster and easier ways to find, approve and market to the appropriate customers. For consumers, Equifax offers easier, instantaneous ways to buy products or services and better insight into and management of their personal credit.

Equifax. Information that Empowers.

Statements in this press release that relate to Equifax's future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Future events, risks and uncertainties, individually or in the aggregate, could cause our actual results to differ materially from those expressed or implied in these forward-looking statements. Those factors include, but are not limited to, changes in worldwide and U.S. economic conditions that materially impact consumer spending and consumer debt, changes in demand for the Company's products and services, risks associated with the integration of acquisitions and other investments, changes in laws governing our business, and certain other factors discussed under the caption "Risk Factors" in the Management's Discussion and Analysis section of the Company's annual report on Form 10-K for the year ended December 31, 2003, and in our other filings with the Securities and Exchange Commission. Equifax assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.


EQUIFAX INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 
  THREE MONTHS ENDED
MARCH 31,

 
(In millions, except per share amounts)

  2004
  2003
 
Operating revenue   $ 313.6   $ 301.6  
   
 
 
  Costs and expenses:              
  Costs of services     133.2     127.0  
  Selling, general and administrative expenses     70.9     70.7  
  Depreciation     4.2     3.9  
  Amortization     17.5     19.3  
   
 
 
    Total costs and expenses     225.8     220.9  
   
 
 
Operating income     87.8     80.7  
  Other income, net     3.3     3.8  
  Minority interests in earnings, net of tax     (0.8 )   (0.6 )
  Interest expense     (8.4 )   (11.7 )
   
 
 
Income from continuing operations before income taxes     81.9     72.2  
  Provision for income taxes     (30.7 )   (27.1 )
   
 
 
Income from continuing operations     51.2     45.1  
   
 
 
Discontinued operations:              
Loss from discontinued operations, net of income tax benefit of $0.0 in 2004 and $0.0 in 2003     (0.4 )   (1.3 )
   
 
 
Net income   $ 50.8   $ 43.8  
   
 
 
Per common share (basic):              
  Income from continuing operations   $ 0.39   $ 0.33  
  Discontinued operations     (0.00 )   (0.01 )
   
 
 
  Net income   $ 0.38 *   0.32  
   
 
 
Shares used in computing basic earnings per share     132.9     135.4  
   
 
 
Per common share (diluted):              
  Income from continuing operations   $ 0.38   $ 0.33  
  Discontinued operations     (0.00 )   (0.01 )
   
 
 
  Net income   $ 0.38   $ 0.32  
   
 
 
Shares used in computing diluted earnings per share     135.1     136.8  
   
 
 
Dividends per common share   $ 0.020   $ 0.020  
   
 
 

*
Does not total due to rounding

SEGMENT REVENUE & OPERATING INCOME

 
  THREE MONTHS ENDED
MARCH 31,

 
 
  2004
  2003
 
Equifax revenue:              
  North America              
    Information Services   $ 173.8   $ 163.6  
    Marketing Services     56.3     76.9  
    Personal Solutions     25.0     14.8  
   
 
 
  North America—Total     255.1     255.3  
  Europe     37.8     30.7  
  Latin America     20.7     15.6  
   
 
 
    $ 313.6   $ 301.6  
   
 
 
Equifax operating income:              
  North America              
    Information Services   $ 74.9   $ 72.5  
    Marketing Services     13.2     16.9  
    Personal Solutions     6.8     1.7  
   
 
 
  North America—Total     94.9     91.1  
  Europe     4.8     2.8  
  Latin America     3.5     2.8  
  Corporate Expense     (15.4 )   (16.0 )
   
 
 
    $ 87.8   $ 80.7  
   
 
 

EQUIFAX INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 
  THREE MONTHS ENDED MARCH 31,
 
(In millions)

 
  2004
  2003
 
Cash flows from operating activities:              
  Net income   $ 50.8   $ 43.8  
  Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:              
    Loss from discontinued operations     0.4     1.3  
    Depreciation and amortization     21.7     23.2  
    Deferred income taxes     9.3     3.0  
    Changes in assets and liabilities, excluding effects of acquisitions:              
      Accounts receivable, net     (15.9 )   (10.6 )
      Current liabilities, excluding debt     (6.6 )   (6.0 )
      Other current assets     (13.2 )   0.8  
      Other long-term liabilities, excluding debt     4.5     (0.2 )
      Other assets     (20.2 )   (26.9 )
      Other     0.8      
   
 
 
Cash provided by operating activities     31.6     28.4  
   
 
 
Investing activities:              
    Additions to property and equipment     (3.3 )   (3.8 )
    Additions to other assets, net     (5.2 )   (9.0 )
    Acquisitions, net of cash acquired     (5.6 )   (12.7 )
    Deferred payments on prior year acquisitions     (1.3 )   (0.5 )
   
 
 
Cash used by investing activities     (15.4 )   (26.0 )
   
 
 
Financing activities:              
    Net short-term borrowings     0.5     6.5  
    Additions to long-term debt     4.4     5.1  
    Payments on long-term debt         (0.5 )
    Treasury stock purchases     (30.0 )   (19.4 )
    Dividends paid     (2.8 )   (2.9 )
    Proceeds from exercise of stock options     12.6     2.7  
    Other     (2.9 )   0.3  
   
 
 
Cash used by financing activities     (18.2 )   (8.2 )
   
 
 
Effect of foreign currency exchange rates on cash     (1.2 )   0.7  
Cash provided by discontinued operations     0.9     0.4  
   
 
 
Decrease in cash and cash equivalents     (2.3 )   (4.7 )
Cash and cash equivalents, beginning of year     39.3     30.5  
   
 
 
Cash and cash equivalents, end of period   $ 37.0   $ 25.8  
   
 
 

EQUIFAX INC.
CONSOLIDATED BALANCE SHEETS

(In millions, except par values)

  March 31,
2004

  December 31,
2003

 
 
  (Unaudited)

   
 
ASSETS              
Current Assets:              
  Cash and cash equivalents   $ 37.0   $ 39.3  
  Trade accounts receivable, net of allowance for doubtful accounts of $11.4 in 2004 and $11.9 in 2003     191.3     175.4  
  Other receivables     17.1     13.3  
  Deferred income tax assets     13.5     15.5  
  Prepaid expenses and other current assets     49.0     42.4  
   
 
 
    Total current assets     307.9     285.9  
   
 
 
Property and Equipment:              
  Land, buildings and improvements     30.6     31.6  
  Data processing equipment and furniture     121.5     121.7  
   
 
 
      152.1     153.3  
  Less accumulated depreciation     107.6     106.3  
   
 
 
      44.5     47.0  
   
 
 
Goodwill, net     725.1     724.3  
Purchased Data Files, net     244.0     247.9  
Other Assets     269.1     248.2  
Assets of Discontinued Operations          
   
 
 
    $ 1,590.6   $ 1,553.3  
   
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY              
Current Liabilities:              
  Short-term debt and current maturities   $ 165.1   $ 160.5  
  Accounts payable     9.2     13.4  
  Accrued salaries and bonuses     17.6     34.4  
  Other current liabilities     166.0     146.5  
   
 
 
    Total current liabilities     357.9     354.8  
Long-Term Debt     660.1     663.0  
Deferred Revenue     11.8     12.0  
Deferred Income Tax Liabilities     51.6     44.3  
Other Long-Term Liabilities     102.3     99.1  
Liabilities of Discontinued Operations     9.3     8.6  
   
 
 
    Total liabilities     1,193.0     1,181.8  
   
 
 
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—180.5 in 2004 and 180.4 in 2003              
    Outstanding shares—132.5 in 2004 and 132.7 in 2003     225.0     225.5  
  Paid-in capital     433.0     432.5  
  Retained earnings     1,127.1     1,079.0  
  Accumulated other comprehensive loss     (297.9 )   (296.1 )
  Treasury stock, at cost, 43.2 shares in 2004 and 42.3 shares in 2003     (1,025.8 )   (995.5 )
  Stock held by employee benefits trusts, at cost, 5.7 shares in 2004 and 5.4 shares in 2003     (63.8 )   (73.9 )
   
 
 
    Total shareholders' equity     397.6     371.5  
   
 
 
    $ 1,590.6   $ 1,553.3  
   
 
 

Common Questions & Answers (Unaudited)—March 31, 2004
(Dollars in millions, except per share amounts)

1A.
Can you provide a further breakdown of revenue in the Equifax North America segment?
 
  2004
  2003
 
  Q1
  Q1
Equifax North America Revenue:            
U.S. Consumer and Commercial Services   $ 132.0   $ 126.4
Mortgage Services     18.4     16.7
Canadian Operations     23.4     20.5
   
 
  Total North America Information Services     173.8     163.6
   
 
Credit Marketing Services     32.1     38.5
Direct Marketing Services     24.2     38.4
   
 
  Total Marketing Services     56.3     76.9
   
 
Personal Solutions     25.0     14.8
   
 
    $ 255.1   $ 255.3
   
 
1B.
Can you provide operating income for your North American operating segments for 2003?

 
  2003
 
 
  Q4
  Q3
  Q2
  Q1
  Year
 
Equifax North America:                                
Information Services   $ 61.9   $ 80.0   $ 83.0   $ 72.0   $ 296.9  
Marketing Services     19.4     7.1     4.9     17.4     48.8  
Personal Solutions     3.4     2.3     1.8     1.7     9.2  
Restructuring and Other Charges     (30.6 )               (30.6 )
   
 
 
 
 
 
  North America—Total     54.1     89.4     89.7     91.1     324.3  
   
 
 
 
 
 
2.
Can you provide a breakout of costs of services and SG&A as a percent of sales?
 
  Q1
 
 
  2004
  2003
 
Operating Expenses:          
Costs of services   43 % 42 %
Selling, general and administrative   23 % 23 %
Depreciation & amortization   7 % 8 %
   
 
 
    73 % 73 %
   
 
 
3.
Can you give depreciation and amortization by segment?

 
  2004
Q1

  2003
Q1

Depreciation & Amortization:            
Equifax North America   $ 14.3   $ 16.2
Equifax Europe     3.2     2.6
Equifax Latin America     1.8     1.3
General Corporate     2.4     3.1
   
 
    $ 21.7   $ 23.2
   
 
4.
What was the currency impact on the foreign operations?
 
  2004 Revenue
  2004 Operating Income
  2003 Revenue
  2003 Operating Income
 
 
  Q1
  %
  Q1
  %
  Q1
  %
  Q1
  %
 
Canada   $ 3.0   14 % $ 1.0   16 % $ 1.1   6 % $ 0.3   6 %
Europe     4.9   16 %   0.7   23 %   3.9   13 %   0.3   13 %
Latin America     3.1   20 %   0.6   23 %   (5.1 ) -26 %   (1.0 ) -23 %
   
 
 
 
 
 
 
 
 
    $ 11.0   4 % $ 2.3   3 % $ (0.1 ) 0 % $ (0.4 ) 0 %
   
 
 
 
 
 
 
 
 
5.
What was your cash flow from operations for the first quarter 2004 and 2003?
6.
What was the level of debt?
 
  Mar 31
2004

  Dec 31
2003

Senior Notes and Debentures—Long-term   $ 648.2   $ 648.0
Senior Notes and Debentures—Current        
Revolving Credit Facility     143.2     139.0
Other Long-term Obligations     11.9     14.9
Other Short-term Debt & Current Maturities     21.9     21.6
   
 
    $ 825.2   $ 823.5
   
 
7.
What was the level of capital spending?
 
  2004
Q1

  2003
Q1

Capital Expenditures   $ 8.5   $ 12.8
   
 
8.
What is the current authorization amount for stock buyback?

Non-GAAP Financial Measures (Unaudited)

A1.
Revenue excluding Mortgage-related and eMarketing revenue

(In millions)

  Q1 2004
  Q1 2003
  Increase
 
Revenue   $ 313.6   $ 301.6      
Mortgage-related and eMarketing revenue     57.1     72.8      
   
 
 
 
Revenue—excluding Mortgage-related and eMarketing revenue   $ 256.5   $ 228.8   12 %
   
 
 
 
A2.
North American revenue excluding Mortgage-related and eMarketing revenue
(In millions)

  Q1 2004
  Q1 2003
  Increase
 
Revenue—North America   $ 255.1   $ 255.3      
  Mortgage-related and eMarketing revenue     57.1     72.8      
   
 
 
 
Revenue—North America—excluding Mortgage-related and eMarketing   $ 198.0   $ 182.5   9 %
   
 
 
 

B1.
Free Cash Flow
(In millions)

  Q1 2004
  Q1 2003
  Increase
 
Cash provided by operating activities for the quarter ended March 31, 2004 and 2003   $ 31.6   $ 28.4      
  Adjustments to reconcile cash provided by operating activities for the quarter March 31, 2004 and 2003, to free cash flow for the quarter ended March 31, 2004 and 2003:                  
    Additions to property and equipment for the three months ended March 31, 2004 and 2003     (3.3 )   (3.8 )    
    Additions to other assets, net, for the three months ended March 31, 2004 and 2003     (5.2 )   (9.0 )    
   
 
 
 
Free cash flow for the quarter ended March 31, 2004 and 2003   $ 23.1   $ 15.6   48 %
   
 
 
 

Notes to our Non-GAAP Financial Measures

Revenue excluding Mortgage-related and eMarketing revenue is a Non-GAAP financial measure and is intended to supplement investors' understanding of our core business activities, unaffected by the fluctuations of the mortgage industry and the performance of our eMarketing business. Revenue excluding Mortgage-related and eMarketing revenue is useful to management and investors for comparative purposes.

We calculate free cash flow by subtracting capital-related expenditures from cash provided by operations. Free cash flow is useful to management and the Company's investors in measuring the cash generated by the Company that is available to be used for business and strategic initiatives. Free cash flow is not a measurement of liquidity under GAAP and should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. In addition, our calculation of free cash flow may be different from the calculation used by other companies and therefore, comparability may be limited.




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EARNINGS RELEASE AND ATTACHMENTS
Equifax Reports Record First Quarter Revenue of $314 million and Earnings Per Share of 38 Cents