10-KPeriod: FY2004

EQUIFAX INC Annual Report, Year Ended Dec 31, 2004

Filed March 16, 2005For Securities:EFX

Summary

Equifax Inc. reported solid financial performance for the fiscal year ended December 31, 2004. The company demonstrated revenue growth across its key segments, with North America remaining its largest contributor. A significant highlight was the 31% increase in income from continuing operations and a 35% rise in earnings per share, reflecting improved operational efficiency and strategic investments. The company continued to expand its global presence, with notable revenue growth in Europe and Latin America. Equifax also focused on enhancing its service offerings, particularly in Personal Solutions, driven by consumer interest in financial responsibility and identity theft protection. The acquisition of APPRO Systems, Inc. in March 2005 further strengthens its position in credit risk management technologies. Despite facing regulatory changes like the FACT Act, Equifax expressed confidence in its ability to comply and maintain a competitive edge.

Key Highlights

  • 1Consolidated revenue increased by 5% to $1,272.8 million for the fiscal year ended December 31, 2004.
  • 2Income from continuing operations grew by 31% to $237.3 million, with diluted earnings per share rising by 35% to $1.78.
  • 3The North America segment, representing 82% of revenue, saw a 2% revenue increase, driven by Information Services and a strong performance in Personal Solutions.
  • 4International segments showed robust growth: Equifax Europe revenue increased by 23%, and Equifax Latin America revenue grew by 14%.
  • 5The company acquired APPRO Systems, Inc. for $92.0 million to enhance its credit risk management and financial technologies.
  • 6Operating income improved by 20% to $375.8 million, with an increased operating margin of 30%, up from 26% in the prior year.
  • 7Equifax is actively managing its debt, with $500 million available under its senior unsecured revolving credit agreement, and is focused on leveraging technology for future growth.

Frequently Asked Questions

Equifax Inc. reported a strong financial performance in 2004, with a 5% increase in consolidated revenue to $1,272.8 million. Income from continuing operations saw a significant jump of 31% to $237.3 million, resulting in a 35% increase in diluted earnings per share to $1.78. The company also improved its operating margin to 30%.

The North America segment, which constitutes the majority of the company's business, experienced a 2% revenue increase. Equifax Europe showed strong growth with a 23% revenue increase, while Equifax Latin America also performed well, with a 14% revenue increase.

Key strategic highlights include the acquisition of APPRO Systems, Inc. for $92 million to bolster its credit risk management capabilities. The company also navigated regulatory changes, such as the implementation of the FACT Act, and continued to invest in technology and product development, particularly in its Personal Solutions segment. Additionally, the company announced a CEO transition during the year.

Equifax maintains a strong liquidity position, with $500 million available under its senior unsecured revolving credit agreement as of December 31, 2004, and no outstanding borrowings. The company is focused on managing its debt and expects to retire its 6.3% notes in 2005 using operational cash flow and credit facilities.