Exhibit 99.1

 

 

NEWS RELEASE

Contact:

 

Jeff Dodge		Tim Klein
Investor Relations		Media Relations
(404) 885-8804		(404) 885-8555
jeff.dodge@equifax.com		tim.klein@equifax.com

 

Equifax Reports Revenue of $501.9 Million and Operating Income of $127.7 Million for the Second Quarter of 2008

 

ATLANTA, July 21, 2008 — 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.

 

“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.

 

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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^® 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.

 

 

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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”.

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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	%

 

 

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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 Ended						Six Months 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.

 

 

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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 Ended						Six Months 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	%

 

 

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