Exhibit 99.1

 

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

 

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 Fourth Quarter and Full Year 2009 Results

 

·                  Fourth quarter revenue was $464.3 million, up 3 percent from the third quarter of 2009 and 4 percent from the fourth quarter of 2008; 3 business units delivered double-digit revenue growth from fourth quarter of 2008.

 

·                  Fourth quarter EPS was $0.47 and fourth quarter adjusted EPS was $0.61.

 

·                  Completed two strategic acquisitions — IXI Corporation and Rapid Reporting Verification Company.

 

·                  Full year 2009 revenue was $1.82 billion compared to $1.94 billion in 2008.

 

·                  Full year 2009 EPS was $1.83 per share and full year adjusted EPS was $2.33.

 

ATLANTA, February 3, 2010 — Equifax Inc. (NYSE: EFX) today announced financial results for the quarter and year ended December 31, 2009.  The company reported revenue of $464.3 million in the fourth quarter of 2009, a 4 percent increase from the fourth quarter of 2008, of which 3 percent was due to the favorable effect of foreign exchange rates.  Fourth quarter 2009 net income was $60.2 million, a 6 percent decrease from the prior year.  On a non-GAAP basis, excluding acquisition-related amortization expense, a restructuring charge (both net of tax) and an income tax benefit, net income was $77.9 million, flat when compared to the fourth quarter of 2008.  Diluted earnings per share (“EPS”) for the fourth quarter of 2009 was $0.47 compared to $0.50 in the same period of the prior year.  On a non-GAAP basis, adjusted EPS, which excludes the impact of acquisition-related amortization expense, the restructuring charge and income tax benefit, was $0.61, flat when compared to the fourth quarter of 2008.

 

For the full year 2009, revenue was $1.82 billion, a 6 percent decrease from 2008 of which 3 percent was due to the unfavorable effect of foreign exchange rates.  Full year 2009 net income was $233.9 million compared to $272.8 million in 2008, down 14 percent.  On a non-GAAP basis, excluding acquisition-related amortization expense, restructuring charges (both net of tax) and certain income tax benefits, net income was $297.7 million, an 8 percent decrease from 2008.  EPS was $1.83 compared to $2.09 for the full year 2008.  On a non-GAAP basis, adjusted EPS, which excludes the impact of acquisition-related amortization expense, restructuring charges and income tax benefits, was $2.33, down 6 percent from the prior year period.

 

 

“We delivered solid performance in the fourth quarter, aggressively managing our expense base and continuing to drive double digit revenue growth in TALX and Mortgage Solutions. We also completed two strategic acquisitions that will add to our growth in 2010 and beyond through new product initiatives and further market penetration,” said Richard F. Smith, Equifax’s Chairman and Chief Executive Officer. “Throughout 2009 we prepared ourselves for the opportunities and challenges of 2010 and enter the year in a much stronger position. We expanded the strategic charter of our Technology and Analytical Services organization, created exciting new products that leverage our increasingly unique data assets and decisioning capabilities, leveraged LEAN and other expense initiatives to improve our operating leverage, and established a Key Client Program to drive product penetration with our largest and most influential customers.”

 

Fourth Quarter 2009 Report

 

·                  Revenue increased 3 percent versus the third quarter of 2009.

 

·                  During the fourth quarter of 2009, we took further steps to realign our business to better support our strategic objectives and recorded a $16.4 million restructuring charge primarily related to severance expense associated with staff reductions.  We also recognized a tax benefit of $7.3 million related to our ability to utilize foreign tax credits beyond 2009.

 

·                  Operating margin was 19.7 percent.  On a non-GAAP basis, excluding the impact of a restructuring charge, operating margin was 23.2 percent in the fourth quarter of 2009 compared to 23.5 percent in the third quarter of 2009 and 26.0 percent in the fourth quarter of 2008.

 

·                  Total debt at December 31, 2009 increased $105.0 million from September 30, 2009 reflecting additional borrowings to finance a portion of our fourth quarter acquisitions.

 

U.S. Consumer Information Solutions (USCIS)

Total revenue was $199.0 million in the fourth quarter of 2009, down 1 percent from the third quarter of 2009 and 4 percent from the fourth quarter of 2008.

 

·                  Online Consumer Information Solutions revenue was $122.2 million, down 10 percent from a year ago.

·                  Mortgage Solutions revenue was $23.0 million, up 27 percent from a year ago.

·                  Consumer Financial Marketing Services revenue was $30.9 million, flat when compared to a year ago.

·                  Direct Marketing Services revenue was $22.9 million, down 6 percent from a year ago.

 

Operating margin for USCIS was 33.2 percent in the fourth quarter of 2009 compared to 34.6 percent in the third quarter of 2009.  Fourth quarter 2008 operating margin was 36.4 percent.

 

International

Total revenue was $117.7 million in the fourth quarter of 2009, a 2 percent increase over the third quarter of 2009 and an 11 percent increase over the fourth quarter of 2008.  In local currency, revenue was down 1 percent when compared to both the third quarter of 2009 and the fourth quarter of 2008.

 

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·                  Latin America revenue was $55.1 million, up 3 percent in local currency and 19 percent in U.S. dollars from a year ago.

·                  Europe revenue was $35.9 million, down 6 percent in local currency and flat in U.S. dollars from a year ago.

·                  Canada Consumer revenue was $26.7 million, down 1 percent in local currency, but up 13 percent in U.S. dollars from a year ago.

 

Operating margin for International was 27.5 percent in the fourth quarter of 2009 compared to 27.0 percent in both the third quarter of 2009 and fourth quarter of 2008.

 

TALX

Total revenue was $89.4 million in the fourth quarter of 2009, an 8 percent increase over the third quarter of 2009 and a 19 percent increase over the fourth quarter of 2008.

 

·                  The Work Number revenue was $41.6 million, up 33 percent from a year ago.

·                  Tax and Talent Management Services revenue was $47.8 million, up 8 percent from a year ago.

 

Operating margin for TALX was 21.1 percent in the fourth quarter of 2009, down slightly from 21.4 percent in the third quarter of 2009, but up from 19.9 percent in the fourth quarter of 2008.

 

North America Personal Solutions

Total revenue was $36.0 million, a 3 percent decrease from both the third quarter of 2009 and fourth quarter of 2008. Operating margin was 28.1 percent, up from 27.3 percent in the third quarter of 2009, but down from 33.9 percent in the fourth quarter of 2008.

 

North America Commercial Solutions

Total revenue was $22.2 million, up 38 percent in both local currency and U.S. dollars from the third quarter of 2009. Revenue was up 8 percent in local currency and 11 percent in U.S. dollars compared to the fourth quarter of 2008.  Operating margin was 34.0 percent, up from 17.8 percent in the third quarter of 2009 and from 28.3 percent in the fourth quarter of 2008.

 

Full Year 2009 Report

 

·                  Revenue was $1.82 billion, down from $1.94 billion in 2008.

 

·                  Total revenue for USCIS was $820.7 million in 2009, an 8 percent decrease from 2008.

 

·                  Total revenue for International was $438.6 million in 2009, a 13 percent decrease from 2008.  In local currency, revenue was down 4 percent when compared to the same period in the prior year.

 

·                  Total revenue for TALX was $346.4 million in 2009, a 14 percent increase over 2008.

 

·                  Total revenue for North America Personal Solutions was $149.0 million in 2009, an 8 percent decrease from 2008.

 

·                  Total revenue for North America Commercial Solutions was $69.8 million in 2009, flat in local currency and down 2 percent in U.S. dollars from 2008.

 

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·                  During 2009, we recorded restructuring charges of $24.8 million primarily related to severance expense associated with staff reductions.  We also recognized a $7.3 million tax benefit related to our ability to utilize foreign tax credits beyond 2009.

 

·                  Operating margin was 22.3 percent for the full year 2009 compared to 24.7 percent for the full year 2008.  On a non-GAAP basis, excluding the impact of restructuring and asset write-down charges, operating margin for the full year 2009 was 23.7 percent compared to 25.5 percent for the full year 2008.

 

·                  Total debt was $1.17 billion at December 31, 2009, a decrease of $45.2 million from December 31, 2008.

 

First Quarter 2010 Outlook

 

Based on the current level of domestic and international business activity and current foreign exchange rates, consolidated revenue for the first quarter of 2010 is expected to be up in the low single digit range from the year-ago quarter.  First quarter 2010 adjusted EPS is expected to be between $0.53 and $0.57.

 

About Equifax (www.equifax.com)

 

Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, 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.

 

With a strong heritage of innovation and leadership, Equifax continuously delivers 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, 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. operates in the U.S. and 14 other countries. 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.

 

Earnings Conference Call and Audio Webcast

 

In conjunction with this release, Equifax will host a conference call tomorrow, February 4, 2010, at 8:30 a.m. (EST) 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 margin excluding restructuring and asset write-down charges and net income and diluted EPS excluding acquisition-related amortization expense, restructuring and asset write-down charges, both net of tax, and income tax benefits.  These are important financial measures for Equifax but are not financial measures as defined by GAAP.

 

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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.

 

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 “Investor Center/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 any forward-looking statements.

 

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, 2008 under Item 1A, “Risk Factors”, and our other filings with the Securities and Exchange Commission.

 

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EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

 

		Three Months Ended
		December 31,
(In millions, except per share amounts)		2009			2008
		(Unaudited)
Operating revenue		$	464.3		$	446.6
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		196.1			184.4
Selling, general and administrative expenses		134.9			108.0
Depreciation and amortization		41.9			38.1
Total operating expenses		372.9			330.5
Operating income		91.4			116.1
Interest expense		(14.1		)	(17.4		)
Other income, net		0.3			3.5
Consolidated income before income taxes		77.6			102.2
Provision for income taxes		(15.7		)	(37.0		)
Consolidated net income		61.9			65.2
Less: Net income attributable to noncontrolling interests		(1.7		)	(1.2		)
Net income attributable to Equifax		$	60.2		$	64.0
Basic earnings per common share		$	0.48		$	0.51
Weighted-average shares used in computing basic earnings per share		126.4			126.3
Diluted earnings per common share		$	0.47		$	0.50
Weighted-average shares used in computing diluted earnings per share		127.5			128.0
Dividends per common share		$	0.04		$	0.04

 

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EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

 

		Twelve Months Ended
		December 31,
(In millions, except per share amounts)		2009			2008
		(Unaudited)
Operating revenue		$	1,824.5		$	1,935.7
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		767.8			792.0
Selling, general and administrative expenses		490.3			511.1
Depreciation and amortization		158.8			155.4
Total operating expenses		1,416.9			1,458.5
Operating income		407.6			477.2
Interest expense		(57.0		)	(71.3		)
Other income, net		6.0			6.2
Consolidated income before income taxes		356.6			412.1
Provision for income taxes		(116.1		)	(133.1		)
Consolidated net income		240.5			279.0
Less: Net income attributable to noncontrolling interests		(6.6		)	(6.2		)
Net income attributable to Equifax		$	233.9		$	272.8
Basic earnings per common share		$	1.85		$	2.13
Weighted-average shares used in computing basic earnings per share		126.3			128.1
Diluted earnings per common share		$	1.83		$	2.09
Weighted-average shares used in computing diluted earnings per share		127.9			130.4
Dividends per common share		$	0.16		$	0.16

 

7

 

EQUIFAX

CONSOLIDATED BALANCE SHEETS

 

		December 31,
(In millions, except par values)		2009			2008
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	103.1		$	58.2
Trade accounts receivable, net of allowance for doubtful accounts of $15.1 and $14.5 at December 31, 2009 and 2008, respectively		258.7			253.4
Prepaid expenses		27.6			22.9
Other current assets		27.4			19.3
Total current assets		416.8			353.8
Property and equipment:
Capitalized internal-use software and system costs		316.6			313.9
Data processing equipment and furniture		184.2			176.6
Land, buildings and improvements		164.5			124.0
Total property and equipment		665.3			614.5
Less accumulated depreciation and amortization		(346.0		)	(328.2		)
Total property and equipment, net		319.3			286.3
Goodwill		1,943.2			1,760.0
Indefinite-lived intangible assets		95.5			95.1
Purchased intangible assets, net		687.0			682.2
Other assets, net		88.7			82.9
Total assets		$	3,550.5		$	3,260.3
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current maturities		$	154.2		$	31.9
Capital lease obligation		29.0			—
Accounts payable		35.9			29.9
Accrued expenses		67.7			57.6
Accrued salaries and bonuses		58.1			54.2
Deferred revenue		69.8			65.7
Other current liabilities		77.5			78.7
Total current liabilities		492.2			318.0
Long-term debt		990.9			1,187.4
Deferred income tax liabilities, net		249.3			215.3
Long-term pension and other postretirement benefit liabilities		142.5			166.0
Other long-term liabilities		60.6			50.1
Total liabilities		1,935.5			1,936.8
Equifax 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 - 189.3 and 189.2 at December 31, 2009 and 2008, respectively; Outstanding shares - 126.2 and 126.3 at December 31, 2009 and 2008, respectively		236.6			236.5
Paid-in capital		1,102.0			1,075.2
Retained earnings		2,494.2			2,281.0
Accumulated other comprehensive loss		(318.7		)	(390.6		)
Treasury stock, at cost, 61.0 shares and 59.7 shares at December 31, 2009 and 2008, respectively		(1,871.7		)	(1,837.9		)
Stock held by employee benefits trusts, at cost, 2.1 shares and 3.2 shares at December 31, 2009 and 2008, respectively		(41.2		)	(51.8		)
Total Equifax shareholders’ equity		1,601.2			1,312.4
Noncontrolling interests		13.8			11.1
Total equity		1,615.0			1,323.5
Total liabilities and equity		$	3,550.5		$	3,260.3

 

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EQUIFAX

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

		Twelve Months Ended
		December 31,
(In millions)		2009			2008
		(Unaudited)
Operating activities:
Consolidated net income		$	240.5		$	279.0
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization		158.8			155.4
Stock-based compensation expense		19.6			19.9
Tax effects of stock-based compensation plans		0.9			2.9
Excess tax benefits from stock-based compensation plans		(1.3		)	(2.1		)
Deferred income taxes		14.7			7.7
Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net		12.8			24.2
Prepaid expenses and other current assets		(1.4		)	3.5
Other assets		(6.9		)	(2.2		)
Current liabilities, excluding debt		3.3			(23.4		)
Other long-term liabilities, excluding debt		(22.6		)	(16.8		)
Cash provided by operating activities		418.4			448.1
Investing activities:
Capital expenditures		(70.7		)	(110.5		)
Investment in unconsolidated affiliates		(3.4		)	(3.7		)
Acquisitions, net of cash acquired		(196.0		)	(27.4		)
Cash used in investing activities		(270.1		)	(141.6		)
Financing activities:
Net short-term borrowings (repayments)		101.8			(184.8		)
Net (repayments) borrowings under long-term revolving credit facilities		(415.2		)	45.0
Proceeds from issuance of long-term debt		274.4			2.3
Payments on long-term debt		(31.8		)	(17.8		)
Treasury stock purchases		(23.8		)	(155.7		)
Dividends paid to Equifax shareholders		(20.2		)	(20.5		)
Dividends paid to noncontrolling interests		(4.0		)	(3.4		)
Proceeds from exercise of stock options		10.2			14.7
Excess tax benefits from stock-based compensation plans		1.3			2.1
Other		(1.0		)	(1.0		)
Cash used in financing activities		(108.3		)	(319.1		)
Effect of foreign currency exchange rates on cash and cash equivalents		4.9			(10.8		)
Increase (decrease) in cash and cash equivalents		44.9			(23.4		)
Cash and cash equivalents, beginning of period		58.2			81.6
Cash and cash equivalents, end of period		$	103.1		$	58.2

 

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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:

 

		Three Months Ended December 31,
													Local Currency
(in millions)		2009			2008			$ Change			% Change		% Change*
Operating revenue:
Online Consumer Information Solutions		$	122.2		$	135.2		$	(13.0	)	-10	%
Mortgage Solutions		23.0			18.2			4.8			27	%
Consumer Financial Marketing Services		30.9			30.8			0.1			0	%
Direct Marketing Services		22.9			24.2			(1.3		)	-6	%
Total U.S. Consumer Information Solutions		199.0			208.4			(9.4		)	-4	%
Europe		35.9			35.9			—			0	%	-6		%
Latin America		55.1			46.3			8.8			19	%	3		%
Canada Consumer		26.7			23.6			3.1			13	%	-1		%
Total International		117.7			105.8			11.9			11	%	-1		%
The Work Number		41.6			31.3			10.3			33	%
Tax and Talent Management Services		47.8			44.1			3.7			8	%
Total TALX		89.4			75.4			14.0			19	%
North America Personal Solutions		36.0			37.1			(1.1		)	-3	%
North America Commercial Solutions		22.2			19.9			2.3			11	%	8		%
Total operating revenue		$	464.3		$	446.6		$	17.7		4	%	1		%
		Twelve Months Ended December 31,
													Local Currency
(in millions)		2009			2008			$ Change			% Change		% Change*
Operating revenue:
Online Consumer Information Solutions		$	525.6		$	594.5		$	(68.9	)	-12	%
Mortgage Solutions		99.5			70.2			29.3			42	%
Consumer Financial Marketing Services		111.3			132.0			(20.7		)	-16	%
Direct Marketing Services		84.3			94.1			(9.8		)	-10	%
Total U.S. Consumer Information Solutions		820.7			890.8			(70.1		)	-8	%
Europe		138.4			175.0			(36.6		)	-21	%	-9		%
Latin America		200.4			219.9			(19.5		)	-9	%	0		%
Canada Consumer		99.8			110.8			(11.0		)	-10	%	-4		%
Total International		438.6			505.7			(67.1		)	-13	%	-4		%
The Work Number		158.2			131.9			26.3			20	%
Tax and Talent Management Services		188.2			173.2			15.0			9	%
Total TALX		346.4			305.1			41.3			14	%
North America Personal Solutions		149.0			162.6			(13.6		)	-8	%
North America Commercial Solutions		69.8			71.5			(1.7		)	-2	%	0		%
Total operating revenue		$	1,824.5		$	1,935.7		$	(111.2	)	-6	%	-3		%
		Three Months Ended December 31,
					Operating						Operating
(in millions)		2009			Margin			2008			Margin		$ Change			% Change
Operating income:
U.S. Consumer Information Solutions		$	66.0		33.2		%	$	75.9		36.4	%	$	(9.9	)	-13	%
International		32.3			27.5		%	28.5			27.0	%	3.8			13	%
TALX		18.9			21.1		%	15.0			19.9	%	3.9			26	%
North America Personal Solutions		10.2			28.1		%	12.6			33.9	%	(2.4		)	-20	%
North America Commercial Solutions		7.5			34.0		%	5.7			28.3	%	1.8			34	%
General Corporate Expense		(43.5		)	nm			(21.6		)	nm		(21.9		)	-101	%
Total operating income		$	91.4		19.7		%	$	116.1		26.0	%	$	(24.7	)	-21	%
		Twelve Months Ended December 31,
					Operating						Operating
(in millions)		2009			Margin			2008			Margin		$ Change			% Change
Operating income:
U.S. Consumer Information Solutions		$	285.2		34.8		%	$	337.1		37.9	%	$	(51.9	)	-15	%
International		118.9			27.1		%	149.9			29.6	%	(31.0		)	-21	%
TALX		75.4			21.8		%	53.1			17.4	%	22.3			42	%
North America Personal Solutions		34.3			23.0		%	46.3			28.4	%	(12.0		)	-26	%
North America Commercial Solutions		15.1			21.7		%	13.6			19.0	%	1.5			11	%
General Corporate Expense		(121.3		)	nm			(122.8		)	nm		1.5			1	%
Total operating income		$	407.6		22.3		%	$	477.2		24.7	%	$	(69.6	)	-15	%

 

nm - not meaningful

* Reflects percentage change in revenue conforming 2009 results using 2008 exchange rates.

 

10

 

Common Questions & Answers (Unaudited)

(Dollars in millions)

 

2.              Can you provide the percentage change in revenue from the third quarter of 2009 in U.S. dollars and local currency?

 

		U.S. Dollars		Local Currency
		% Change		% Change*
Operating revenue:
U.S. Consumer Information Solutions		-1	%
International		2	%	-1	%
TALX		8	%
North America Personal Solutions		-3	%
North America Commercial Solutions		38	%	38	%
Total operating revenue		3	%	2	%

 

* Reflects percentage change in revenue conforming Q4 2009 results using Q3 2009 exchange rates.

 

3.              What drove the fluctuation in the effective tax rate?

 

Our effective income tax rate was 20.3% for the three months ended December 31, 2009, down from 36.2% for the same period in 2008, due primarily to the recognition of a $7.3 million income tax benefit during the fourth quarter of 2009 related to our ability to utilize foreign tax credits beyond 2009. Additionally, we recorded favorable discrete items during the fourth quarter of 2009 related to foreign and state taxes.

 

The effective tax rate was 32.6% for the twelve months ended December 31, 2009, up from 32.3% for the same period in 2008.  Our 2009 rate reflects the previously mentioned income tax benefits and our 2008 rate reflects the reversal of a $14.6 million income tax reserve related to the expiration of the statute of limitations for an uncertain tax position regarding our Brazilian operations.

 

4.              Can you provide depreciation and amortization by segment?

 

Depreciation and amortization are as follows:

 

		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2009			2008			2009			2008
U.S. Consumer Information Solutions		$	13.3		$	11.9		$	49.0		$	46.2
International		6.1			5.4			23.2			23.8
TALX		16.2			15.5			62.6			62.6
North America Personal Solutions		1.3			0.8			4.8			3.1
North America Commercial Solutions		1.5			1.4			5.8			5.4
General Corporate Expense		3.5			3.1			13.4			14.3
Total depreciation and amortization		$	41.9		$	38.1		$	158.8		$	155.4

 

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 December 31, 2009
		Operating Revenue					Operating Income
		Amount			%		Amount			%
Canada Consumer		$	3.5		14	%	$	1.4		15	%
Canada Commercial		0.8			14	%	0.3			16	%
Europe		2.0			6	%	0.4			7	%
Latin America		7.3			16	%	1.1			9	%
		$	13.6		3	%	$	3.2		3	%
		Twelve Months Ended December 31, 2009
		Operating Revenue					Operating Income
		Amount			%		Amount			%
Canada Consumer		$	(7.0	)	-6	%	$	(2.8	)	-6	%
Canada Commercial		(1.7		)	-7	%	(0.7		)	-8	%
Europe		(21.3		)	-12	%	(4.2		)	-11	%
Latin America		(18.9		)	-9	%	(6.7		)	-10	%
		$	(48.9	)	-3	%	$	(14.4	)	-3	%

 

6.              Can you provide detail regarding your fourth quarter 2009 acquisitions?

 

On October 27, 2009, we acquired IXI Corporation (“IXI”), a provider of information on consumer financial assets, income and spending for $124.0 million. The results of IXI are included in our Consumer Financial Marketing Services reporting unit, which also includes our Credit Marketing Services business.

 

On November 2, 2009, we acquired Rapid Reporting Verification Company (“Rapid”), a provider of IRS tax transcript information and social security number authentication services for $72.5 million.  The results of Rapid are included in The Work Number reporting unit.

 

7.              2008 expense reclassification

 

Certain prior year amounts have been reclassified to conform to current year presentation.  $3.1 million and $13.2 million of selling, general and administrative expense for the three and twelve months ended December 31, 2008, respectively, have been reclassified to cost of services.

 

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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 net income attributable to Equifax to diluted EPS, adjusted for acquisition-related amortization expense, restructuring and asset write-down charges and income tax benefit:

 

		Three Months Ended
		December 31,
		2009			2008			$ Change			% Change
Net income attributable to Equifax		$	60.2		$	64.0		$	(3.8	)	-6	%
Restructuring charge, net of tax (1)		10.4			—			10.4			nm
Income tax benefit (2)		(7.3		)	—			(7.3		)	nm
Net income attributable to Equifax, adjusted for restructuring charge and income tax benefit		63.3			64.0			(0.7		)	-1	%
Acquisition-related amortization expense, net of tax		14.6			13.7			0.9			7	%
Net income attributable to Equifax, adjusted for restructuring charge, income tax benefit and acquisition-related amortization expense		$	77.9		$	77.7		$	0.2		0	%
Diluted EPS, adjusted for restructuring charge, income tax benefit and acquisition-related amortization expense		$	0.61		$	0.61		$	—		0	%
Weighted-average shares used in computing diluted EPS		127.5			128.0
		Twelve Months Ended
		December 31,
		2009			2008			$ Change			% Change
Net income attributable to Equifax		$	233.9		$	272.8		$	(38.9	)	-14	%
Restructuring and asset write-down charges, net of tax (1)		15.8			10.5			5.3			50	%
Income tax benefits (2)		(7.3		)	(14.6		)	7.3			-50	%
Net income attributable to Equifax, adjusted for restructuring and asset write-down charges and income tax benefits		242.4			268.7			(26.3		)	-10	%
Acquisition-related amortization expense, net of tax		55.3			54.7			0.6			1	%
Net income attributable to Equifax, adjusted for restructuring and asset write-down charges, income tax benefits and acquisition-related amortization expense		$	297.7		$	323.4		$	(25.7	)	-8	%
Diluted EPS, adjusted for restructuring and asset write-down charges, income tax benefits and acquisition-related amortization expense		$	2.33		$	2.48		$	(0.15	)	-6	%
Weighted-average shares used in computing diluted EPS		127.9			130.4

 

nm - not meaningful

(1) Restructuring and asset write-down charges include $16.4 million of primarily severance expense in the fourth quarter of 2009, $8.4 million of severance expense in the first quarter of 2009, and $10.3 million of severance expense, $4.1 million of certain contractual costs and $2.4 million of asset write-down charges in the third quarter of 2008.  See the Notes to this reconciliation for additional detail.

(2) We recorded a $7.3 million income tax benefit during the fourth quarter of 2009 related to our ability to utilize foreign tax credits beyond 2009.  We recorded a $14.6 million income tax benefit in 2008 related to uncertain tax positions associated with our Brazilian operations, for which the statute of limitations expired during the third quarter of 2008.  See the Notes to this reconciliation for additional detail.

 

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