Exhibit 99.1

  Non-GAAP Financial Measures (Unaudited) - September 30, 2004          
     
 A. Revenue excluding Mortgage-related and eMarketing revenue    
     
  RECONCILIATION OF REVENUE TO REVENUE EXCLUDING MORTGAGE-RELATED
     AND eMARKETING REVENUE      
     
  Quarter      
  (In millions)           
      Q3 2004   Q3 2003     Increase  
           
  Revenue   $

323.0

       $

309.8

       4%  
         
       Mortgage-related and eMarketing revenue  

54.8

 

 60.6

     
         
  Revenue-excluding Mortgage-related and eMarketing revenue  

268.2

  $

249.2

  8%  
         
 
  YTD    
  (In millions)  
      2004   2003   Increase  
           
  Revenue   $

955.5

  $

 928.4

  3%  
               
       Mortgage-related and eMarketing revenue  

168.4

 

204.1

     
         
  Revenue-excluding Mortgage-related and eMarketing revenue   $

787.1

  $

724.3

   9%  

 


 

 

B. Free Cash Flow
Quarter
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2004 AND 2003, TO FREE CASH FLOW FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2004 AND 2003
(In millions)
          2004      2003       Increase
Cash provided by operating activities for the three months $

 93.7 

$

 91.4

3%
ended September 30, 2004 and 2003
Adjustments to reconcile cash provided by operating activities
for the three months ended September 30, 2004 and 2003, to free cash flow
for the three months ended September 30, 2004 and 2003:
Additions to property and equipment for the three months ended
September 30, 2004 and 2003

        (5.5)

        (3.1)

Additions to other assets, net, for the three months ended 
September 30, 2004 and 2003

        (7.3)

      (10.4)

Free cash flow for the three months ended September 30, 2004 and 2003

 80.9 

$

77.9 

4%
YTD
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2004 AND 2003, TO FREE CASH FLOW FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2004 AND 2003
(In millions)
                2004 2003 Increase
Cash provided by operating activities for the nine months $

207.7 

$

193.5

7%
ended September 30, 2004 and 2003
Adjustments to reconcile cash provided by operating activities
for the nine months ended September 30, 2004 and 2003, to free cash flow
for the nine months ended September 30, 2004 and 2003:
Additions to property and equipment for the nine months ended
September 30, 2004 and 2003

      (10.5)

      (11.4)

Additions to other assets, net, for the nine months ended 
September 30, 2004 and 2003

      (22.5)

      (25.3)

Free cash flow for the nine months ended September 30, 2004 and 2003 $

174.7 

$

156.8

11%

 


 

C.   Income from continuing operations excluding the effect of the sale of investment, asset impairment and 
related charges
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS TO INCOME FROM CONTINUING OPERATIONS 
     EXCLUDING THE EFFECT OF THE SALE OF INVESTMENT, ASSET IMPAIRMENT AND RELATED CHARGES
(In millions) YTD 2004
          Pre-tax           After-tax    EPS
Income from continuing operations $

286.6 

$

177.1 

 1.324 

Sale of investment in Intersections

    (36.8)

(23.0)

(0.172)

Asset impairment and related charges

 7.6 

 4.8 

 0.036 

Income from continuing operations - excluding sale of
    investment, asset impairment and related charges
$  

257.4

$

158.9 

$

1.188

D. Income from continuing operations - effective tax rate sensitivity analysis
(In millions) Q3 2004
Effective Tax Rate       39.8% 37.5%
Income from continuing operations before income taxes $

 87.6 

      $   

 87.6 

Provision for income taxes

(34.9)

 (32.8)

Income from continuing operations $

 52.7 

$

 54.8 

Diluted EPS $

 0.40 

$

 0.41 

 

 


 

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 our investors in measuring the cash generated by Equifax 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.

Equifax believes that income from continuing operations excluding the effect of the sale of investment, asset impairment and related charges is a measure that should be presented in addition to income from continuing operations determined in accordance with generally accepted accounting principles in the United States (GAAP) and is useful to investors. The following matters should be considered when evaluating this non-GAAP financial measure:

Equifax believes that the effective tax rate sensitivity analysis is useful to management and investors for comparative purposes.