Exhibit 99.1

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

NEWS RELEASE

Contact:

Jeff Dodge		David Rubinger
Investor Relations		Media Relations
(404) 885-8804		(404) 885-8555
jeff.dodge@equifax.com		david.rubinger@equifax.com

 

Equifax Ends 2006 with Strong Broad-Based Revenue and EPS Growth
for the Quarter and Full Year

ATLANTA, January 31, 2007 — Equifax Inc. (NYSE: EFX) today announced financial results for the quarter and year ended December 31, 2006. For the fourth quarter of 2006, revenue increased to $390.0 million, up 8 percent compared to the fourth quarter of 2005. Net income rose to $63.1 million, a slight increase from a year ago. Diluted earnings per share (“EPS”) grew to $0.50, up 4 percent from the fourth quarter of 2005.

On a non-GAAP basis, excluding the impact of a charge in the fourth quarter of 2006 related to the company’s organizational realignment and the negative incremental impact of adopting Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment” (“SFAS 123R”) on January 1, 2006, net income grew to $67.8 million, up 8 percent, and EPS rose to $0.53, a 12 percent increase from the fourth quarter of 2005. See the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures attached to this earnings release for additional information.

For the full year 2006, revenue increased to $1.55 billion, up 7 percent compared to the full year 2005. Net income rose to $274.5 million, an 11 percent increase from a year ago. EPS grew to $2.12, up 14 percent from the full year 2005.  On a non-GAAP basis, excluding the impact of certain items in 2006, net income grew to $260.5 million, up 6 percent, and EPS rose to $2.01, an 8 percent increase from 2005. When also excluding the incremental impact of adopting SFAS 123R from the non-GAAP measures above, net income increased to $265.7 million, up 8 percent, and EPS rose to $2.05, a 10 percent increase from 2005.

“The performance in the fourth quarter of 2006 reflects the strength and capability of the company, enabling us to deliver strong financial results for the year,” said Richard F. Smith, Equifax Chairman and Chief Executive Officer. “For the year, we met or exceeded the guidance provided in all areas, further underscoring our long-standing commitment to shareholders.”

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Fourth Quarter 2006 Highlights

·                  Double-digit revenue growth in four of five business units contributed to an 8 percent increase in revenue in the fourth quarter of 2006, when compared to the same period in 2005.

·                  The company completed an organizational realignment, effective January 1, 2007, to better support our strategic objectives. We recorded a $6.4m charge in the quarter related to the elimination of certain positions as part of the realignment.

·                  Operating margin decreased to 28.2 percent in the fourth quarter of 2006 from 29.3 percent in the fourth quarter of 2005. On a non-GAAP basis, excluding the unfavorable impact of the $6.4 million severance charge related to our organizational realignment and the negative incremental impact of adopting SFAS 123R, operating margin increased to 30.0 percent in the fourth quarter of 2006.

·                  Cash provided by operating activities for the fourth quarter of 2006 was $118.9 million, a 12 percent increase when compared to the same period in 2005.

·                  The company repurchased 1.4 million shares of its common stock on the open market for $50.7 million during the fourth quarter of 2006. At December 31, 2006, $132.6 million remained authorized for future share repurchases.

·                  The company acquired Austin-Tetra, Inc. on October 6, 2006 for $34.4 million. Austin-Tetra is a leading provider of business-to-business data management and enhancement services to the commercial market. This acquisition is an integral part of our long-term growth strategy, complementing our commercial information business.

North America

Total revenue was $308.9 million in the fourth quarter of 2006, a 6 percent increase from the fourth quarter of 2005. Operating margin for North America was 38.8 percent in the fourth quarter of 2006 compared to 37.8 percent in the fourth quarter of 2005.

·                  North America Information Services revenue was $203.6 million, up 3 percent compared to the fourth quarter of 2005.

·                  Marketing Services revenue was $73.6 million, up 11 percent compared to the fourth quarter of 2005.

·                  Personal Solutions revenue was $31.7 million, up 18 percent compared to the fourth quarter of 2005.

Europe

Total revenue was $41.3 million, up 17 percent compared to the fourth quarter of 2005. In local currency, revenue was up 7 percent when compared to the same period in the prior year. Operating margin was 20.6 percent, down from 25.8 percent in the fourth quarter of 2005.

Latin America

Total revenue was $39.8 million, up 10 percent compared to the fourth quarter of 2005. In local currency, revenue was up 8 percent when compared to the same period in the prior year. Operating margin was 32.8 percent, up from 24.7 percent in the fourth quarter of 2005.

Full Year 2006 Highlights

·                  Broad-based revenue growth across business units contributed to 7 percent increase in revenue in 2006, when compared to the same period in 2005.

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·                  Operating margin decreased to 28.2 percent for the full year 2006 from 29.2 percent for the full year 2005. On a non-GAAP basis, excluding the impact of certain litigation matters, the $6.4 million severance charge in 2006 related to our organizational realignment, and the negative incremental impact of adopting SFAS 123R, operating margin increased to 29.7 percent for the full year 2006.

·                  Cash provided by operating activities for the full year 2006 was $374.3 million, an 11 percent increase when compared to the same period in 2005.

·                  Equifax repurchased 6.0 million shares of its common stock on the open market for $212.7 million during the full year 2006.

·                  The effective tax rate for the full year 2006 was 34.0 percent, as compared to 36.9 percent for the same period in 2005. The decline was primarily driven by the reversal of certain income tax reserves related to uncertain tax positions due to the expiration of the applicable statute of limitations during the third quarter of 2006, and a non-taxable gain related to a litigation settlement during the second quarter of 2006. On a non-GAAP basis, excluding the favorable impact of the reversal of certain income tax reserves and the litigation settlement, our effective tax rate was 37.6 percent for the full year 2006.

·                  Total debt declined $52.2 million from December 31, 2005 to December 31, 2006.

North America

Total revenue was $1.24 billion in 2006, a 5 percent increase from 2005. Operating margin for North America was 36.8 percent in the full year 2006 compared to 37.8 percent in the full year 2005. On a non-GAAP basis, excluding the impact of certain litigation matters, operating margin was 37.5 percent in 2006.

·                  North America Information Services revenue was $835.5 million, up 4 percent compared to the full year 2005.

·                  Marketing Services revenue was $277.2 million, up 9 percent compared to the full year 2005.

·                  Personal Solutions revenue was $126.0 million, up 10 percent compared to the full year 2005.

Europe

Total revenue was $153.6 million, up 8 percent compared to the full year 2005. In local currency, revenue was up 7 percent when compared to the prior year. Operating margin was 23.1 percent, down from 23.5 percent in the full year 2005.

Latin America

Total revenue was $154.0 million, up 21 percent compared to 2005. In local currency, revenue was up 14 percent when compared to the prior year. Operating margin was 29.8 percent, up from 26.3 percent in the full year 2005.

2007 Annual Outlook

Based on current business trends and management’s outlook, Equifax expects consolidated annual revenue growth to be between 6 percent and 10 percent. In 2007, we expect quarterly year-over-year growth to be in the lower portion of this range in the first quarter and to increase over the course of the year as new product and market initiatives yield increasing results. EPS for the full year is expected to be between $2.15 and $2.23, representing growth ranging from 7 percent to 11 percent over our 2006 EPS, excluding certain items, of $2.01. EBITDA, a non-GAAP financial measure defined by us as operating income before depreciation and amortization expense, is expected to be in the range of $555 million to $575 million for the full year. Annual capital expenditures are targeted at $70 million to $100 million. A reconciliation of EBITDA to its most directly comparable GAAP measure and related notes are presented in the attached Q&A.

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About Equifax

Equifax Inc. is a global leader in information technology that enables and secures global commerce with consumers and businesses. We are one of the largest sources of consumer and commercial data. Utilizing our databases, advanced analytics and proprietary enabling technology, we provide real-time answers for our customers. This innovative ability to transform information into intelligence is valued by customers across a wide range of industries and markets. Headquartered in Atlanta, Georgia, Equifax employs approximately 4,900 people in 14 countries throughout North America, Latin America and Europe. Equifax was founded 107 years ago, and today is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.

www.equifax.com

Earnings Conference Call and Webcast

Equifax’s quarterly teleconference to discuss the fourth quarter and full year earnings release will be held tomorrow at 8:30 a.m. (EDT). The live audio Webcast of the speakers’ presentations will be available at www.equifax.com and a replay will be available at the same site shortly after the conclusion of the Webcast. This press release, the financial tables, as well as other supplemental information, are also available at that Web site.

Supplemental Financial Information and Non-GAAP Financial Measures

The Common Questions and Answers (Unaudited) (“Q&A”) that are a part of this press release include supplemental financial information which Equifax believes is useful to assess its operating performance.  The following financial measures included herein or in the Q&A are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”): consolidated pretax income, net income and diluted earnings per share, excluding certain items; operating income and operating margin, excluding certain items for our consolidated results and particular business units; effective tax rate, excluding certain items, and EBITDA. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and related notes are presented in the Q&A. This information can also be found under “Our Company/Investor Center/Non-GAAP/GAAP Financial Measures” on our Web site at www.equifax.com.  Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

Caution Concerning Forward-Looking Statements

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 and movements in interest rates that materially impact consumer spending and use of consumer debt, including mortgages; changes in demand for Equifax’s products and services; our ability to successfully develop and market new products and services; pricing and other competitive pressures which could result in a loss of customers or a rate of increase or decrease in prices for our services different than past experience; risks relating to illegal third party efforts to access data and our operating systems; risks associated

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with the integration of acquired technologies, businesses and other investments; changes in laws and regulations governing our business and the application of existing laws, including federal or state responses to identity theft concerns and governing the use of consumer or business credit or marketing information, which could increase our operating costs or reduce the market for our services; disruptions in our business critical systems and operations which could interfere with our ability to deliver services to our customers; third party claims alleging infringement of intellectual property or other proprietary rights or alleging unfair competition or violation of privacy rights; the outcome of pending litigation; and certain other factors discussed under Item 1A, “Risk Factors” in Equifax’s 2005 Annual Report on Form 10-K, 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.

 

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EQUIFA X
CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended December 31,
(In millions, except per share amounts)		2006			2005
		(Unaudited)
Operating revenue		$	390.0		$	361.3
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		159.9			150.9
Selling, general and administrative expenses		99.4			82.7
Depreciation and amortization		20.8			21.7
Total operating expenses		280.1			255.3
Operating income		109.9			106.0
Interest expense		(7.9		)	(8.1		)
Minority interests in earnings, net of tax		(1.5		)	(1.3		)
Other income (expense), net		0.2			(0.7		)
Income before income taxes		100.7			95.9
Provision for income taxes		(37.6		)	(33.1		)
Net income		$	63.1		$	62.8
Basic earnings per common share		$	0.50		$	0.48
Shares used in computing basic earnings per share		125.0			129.5
Diluted earnings per common share		$	0.50		$	0.48
Shares used in computing diluted earnings per share		127.2			132.0
Dividends per common share		$	0.04		$	0.04

 

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EQUIFA X
CONSOLIDATED STATEMENTS OF INCOME

		Twelve Months Ended December 31,
		2006			2005
(In millions, except per share amounts)		(Unaudited)
Operating revenue		$	1,546.3		$	1,443.4
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		626.4			594.2
Selling, general and administrative expenses		401.0			345.0
Depreciation and amortization		82.8			82.2
Total operating expenses		1,110.2			1,021.4
Operating income		436.1			422.0
Interest expense		(31.9		)	(35.6		)
Minority interests in earnings, net of tax		(4.5		)	(4.9		)
Other income, net		16.2			9.2
Income before income taxes		415.9			390.7
Provision for income taxes		(141.4		)	(144.2		)
Net income		$	274.5		$	246.5
Basic earnings per common share		$	2.16		$	1.90
Shares used in computing basic earnings per share		127.1			129.7
Diluted earnings per common share		$	2.12		$	1.86
Shares used in computing diluted earnings per share		129.4			132.2
Dividends per common share		$	0.16		$	0.15

 

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EQUIFA X
CONSOLIDATED BALANCE SHEETS

		December 31,
(In millions, except par values)		2006			2005
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	67.8		$	37.5
Trade accounts receivable, net of allowance for doubtful accounts of $8.7 and $9.6 at December 31, 2006 and 2005, respectively		244.8			216.0
Prepaid expenses		21.5			17.9
Other current assets		11.1			9.0
Total current assets		345.2			280.4
Property and equipment:
Capitalized internal-use software and system costs		243.8			205.9
Data processing equipment and furniture		132.2			124.5
Land, buildings and improvements		29.7			29.1
Total property and equipment		405.7			359.5
Less accumulated depreciation and amortization		(243.8		)	(202.7		)
Total property and equipment, net		161.9			156.8
Goodwill		842.0			791.2
Indefinite-lived intangible assets		95.2			95.0
Purchased intangible assets, net		242.2			263.4
Prepaid pension asset		47.7			183.7
Other assets, net		56.4			61.0
Total assets		$	1,790.6		$	1,831.5
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current maturities		$	330.0		$	92.3
Accounts payable		23.5			5.9
Accrued expenses		62.0			54.0
Accrued salaries and bonuses		41.9			40.7
Deferred revenue		62.7			49.2
Other current liabilities		62.0			52.4
Total current liabilities		582.1			294.5
Long-term debt		173.9			463.8
Deferred income tax liabilities, net		70.8			126.1
Long-term pension and other postretirement benefit liabilities		65.3			56.2
Other long-term liabilities		60.4			70.6
Total liabilities		952.5			1,011.2
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 - 186.3 and 185.2 at December 31, 2006 and 2005, respectively; Outstanding shares - 124.7 and 129.2 at December 31, 2006 and 2005, respectively		232.9			231.5
Paid-in capital		609.2			559.0
Retained earnings		1,778.6			1,525.1
Accumulated other comprehensive loss		(232.2		)	(157.8		)
Treasury stock, at cost, 57.7 shares and 51.7 shares at December 31, 2006 and 2005, respectively		(1,490.9		)	(1,274.6		)
Stock held by employee benefits trusts, at cost, 3.9 shares and 4.3 shares at December 31, 2006 and 2005, respectively		(59.5		)	(62.9		)
Total shareholders’ equity		838.1			820.3
Total liabilities and shareholders’ equity		$	1,790.6		$	1,831.5

 

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EQUIFA X
CONSOLIDATED STATEMENTS OF CASH FLOWS

		Twelve Months Ended December 31,
(In millions)		2006			2005
		(Unaudited)
Operating activities:
Net income		$	274.5		$	246.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		82.8			82.2
Stock-based compensation expense		17.4			8.2
Tax effects of stock-based compensation plans		8.9			18.1
Excess tax benefits from stock-based compensation plans		(5.0		)	—
Deferred income taxes		(2.6		)	11.8
Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net		(22.8		)	(14.3		)
Prepaid expenses and other current assets		(2.4		)	10.5
Other assets		(1.6		)	0.5
Current liabilities, excluding debt		49.1			(14.0		)
Other long-term liabilities, excluding debt		(24.0		)	(11.7		)
Cash provided by operating activities		374.3			337.8
Investing activities:
Capital expenditures		(52.0		)	(46.2		)
Acquisitions, net of cash acquired		(34.4		)	(121.8		)
Other		(0.4		)	10.1
Cash used in investing activities		(86.8		)	(157.9		)
Financing activities:
Net short-term (repayments) borrowings		(12.2		)	92.3
Net (repayments) borrowings under long-term revolving credit facilities		(40.0		)	65.0
Payments on long-term debt		—			(250.0		)
Treasury stock purchases		(215.2		)	(144.0		)
Dividends paid		(20.3		)	(20.2		)
Proceeds from exercise of stock options		26.1			62.8
Excess tax benefits from stock-based compensation plans		5.0			—
Other		(0.6		)	0.6
Cash used in financing activities		(257.2		)	(193.5		)
Effect of foreign currency exchange rates on cash and cash equivalents		—			(1.0		)
Increase (decrease) in cash and cash equivalents		30.3			(14.6		)
Cash and cash equivalents, beginning of period		37.5			52.1
Cash and cash equivalents, end of period		$	67.8		$	37.5

 

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Common Questions & Answers (Unaudited)
(Dollars in millions, except per share amounts)

1.                 What impact did the organizational realignment have on the financial results for the three and twelve months ended December 31, 2006?

As a result of the organizational realignment to better fit our new strategy, we recorded a severance charge totaling $6.4 million during the fourth quarter of 2006.

 

See non-GAAP reconciliations A and F herein, including the related notes, for additional information.

2.                 What were the events associated with certain litigation matters that occurred during the twelve months ended December 31, 2006?

During the twelve months ended December 31, 2006, we recorded the following loss contingencies related to certain litigation matters. There were no adjustments to these loss contingencies, however, during the fourth quarter of 2006.

·        a $5.0 million, pretax, loss contingency in our Personal Solutions segment financial results. Of the $5.0 million, pretax, loss, $4.0 million was recorded to selling, general and administrative expenses and $1.0 million was recorded to cost of services in our Consolidated Statement of Income.

·        a $4.0 million, pretax, loss contingency associated with certain legal matters within our North America Information Services segment. Of the $4.0 million, pretax, loss, $3.5 million was recorded to selling, general and administrative expenses and $0.5 million was recorded to cost of services in our Consolidated Statement of Income.

The following is the impact of these litigation matters on our Consolidated Statements of Income for the three and twelve months ended December 31, 2006:

 

*                    Personal Solutions and Information Services financial results are both reported in the North America segment financial results.

See non-GAAP reconciliations A and C through F herein, including the related notes, for additional information.

3.                 What drove the increase in other income, net for the twelve months ended December 31, 2006 as compared to the same period in 2005?

The increase in other income, net was primarily due to the settlement of claims against former selling shareholders of Naviant, Inc., an acquisition in 2002, which resulted in a $14.1 million non-taxable gain recorded during the second quarter of 2006, partially offset by a $3.3 million, pretax, gain recorded during the third quarter of 2005 related to an agreement with RMA Holdings, LLC.

The following is the impact of the Naviant litigation settlement on our Consolidated Statements of Income for the three and twelve months ended December 31, 2006:

 

See non-GAAP reconciliations A and B herein, including the related notes, for additional information.

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		Three Months Ended December 31, 2006									Twelve Months Ended December 31, 2006
		Pretax			Net of Tax			Diluted EPS			Pretax			Net of Tax			Diluted EPS
Income tax benefit (third quarter of 2006)		$	—		$	—		$	—		$	—		$	9.5		$	0.07

		Three Months Ended December 31, 2006									Twelve Months Ended December 31, 2006
		Pretax			Net of Tax			Diluted EPS			Pretax			Net of Tax			Diluted EPS
Incremental (expense) due to SFAS 123R		$	(1.0	)	$	(0.7	)	$	—		$	(7.6	)	$	(5.2	)	$	(0.04	)

		Three Months Ended December 31,
		2006			% of Revenue		2005			% of Revenue		$ Change			% Change
Operating revenue:
North America
Information Services		$	203.6		52	%	$	196.8		54	%	$	6.8		3	%
Marketing Services		73.6			19	%	66.5			18	%	7.1			11	%
Personal Solutions		31.7			8	%	26.8			8	%	4.9			18	%
North America - Total		308.9			79	%	290.1			80	%	18.8			6	%
Europe		41.3			11	%	35.2			10	%	6.1			17	%
Latin America		39.8			10	%	36.0			10	%	3.8			10	%
Total operating revenue		$	390.0		100	%	$	361.3		100	%	$	28.7		8	%

		Three Months Ended December 31,
		2006			Operating Margin		2005			Operating Margin		$ Change			% Change
Operating income:
North America
Information Services		$	81.8		40.2	%	$	81.9		41.6	%	$	(0.1	)	0	%
Marketing Services		29.7			40.3	%	24.3			37.0	%	5.4			22	%
Personal Solutions		8.4			26.5	%	3.7			13.9	%	4.7			125	%
North America - Total		119.9			38.8	%	109.9			37.8	%	10.0			9	%
Europe		8.5			20.6	%	9.0			25.8	%	(0.5		)	(7	)%
Latin America		13.0			32.8	%	8.9			24.7	%	4.1			46	%
General Corporate Expense		(31.5		)	nm		(21.8		)	nm		(9.7		)	(44	)%
Total operating income		$	109.9		28.2	%	$	106.0		29.3	%	$	3.9		4	%

		Twelve Months Ended December 31,
		2006			% of Revenue		2005			% of Revenue		$ Change			% Change
Operating revenue:
North America
Information Services		$	835.5		54	%	$	806.3		55	%	$	29.2		4	%
Marketing Services		277.2			18	%	253.7			18	%	23.5			9	%
Personal Solutions		126.0			8	%	114.7			8	%	11.3			10	%
North America - Total		1,238.7			80	%	1,174.7			81	%	64.0			5	%
Europe		153.6			10	%	142.0			10	%	11.6			8	%
Latin America		154.0			10	%	126.7			9	%	27.3			21	%
Total operating revenue		$	1,546.3		100	%	$	1,443.4		100	%	$	102.9		7	%

		Twelve Months Ended December 31,
		2006			Operating Margin		2005			Operating Margin		$ Change			% Change
Operating income:
North America
Information Services		$	343.3		41.1	%	$	345.5		42.8	%	$	(2.2	)	(1	)%
Marketing Services		99.1			35.7	%	85.2			33.5	%	13.9			16	%
Personal Solutions		13.6			10.8	%	13.5			11.8	%	0.1			1	%
North America - Total		456.0			36.8	%	444.2			37.8	%	11.8			3	%
Europe		35.4			23.1	%	33.4			23.5	%	2.0			6	%
Latin America		45.9			29.8	%	33.3			26.3	%	12.6			38	%
General Corporate Expense		(101.2		)	nm		(88.9		)	nm		(12.3		)	(14	)%
Total operating income		$	436.1		28.2	%	$	422.0		29.2	%	$	14.1		3	%

Common Questions & Answers (Unaudited)
(Dollars in millions)

9.                 Can you provide a further analysis of operating revenue in the North America segment?

North America operating revenue consists of the following components:

 

 

 

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