10-K/APeriod: FY2004

EQUIFAX INC Annual Report (Amendment), Year Ended Dec 31, 2004

Filed April 1, 2005For Securities:EFX

Summary

Equifax Inc. filed an amended 10-K for the fiscal year ended December 31, 2004, primarily to correct a minor error in the auditor's report regarding a reference to a specific accounting standard footnote. The core financial information remains consistent with the original filing. Financially, Equifax demonstrated revenue growth in 2004 compared to 2003, reaching $1,272.8 million. Net income also saw a significant increase, rising to $234.7 million from $164.9 million in the prior year. This improvement was driven by higher income from continuing operations, despite a loss from discontinued operations. The company's balance sheet remained solid with total assets of $1,557.2 million and total shareholders' equity of $523.6 million. The company also continued its share repurchase program and managed its debt levels effectively, entering into new credit facilities. Management assessed internal controls over financial reporting and found them to be effective.

Key Highlights

  • 1Revenue increased by 5.1% to $1,272.8 million in 2004, up from $1,210.7 million in 2003.
  • 2Net income surged by 42.3% to $234.7 million in 2004, compared to $164.9 million in 2003, largely due to improved income from continuing operations.
  • 3The company strengthened its financial position with total assets of $1,557.2 million and shareholders' equity of $523.6 million as of December 31, 2004.
  • 4Equifax actively managed its capital structure, issuing new credit facilities and repurchasing shares. Shareholder equity increased significantly due to retained earnings.
  • 5The company's management and independent auditors concluded that internal controls over financial reporting were effective as of December 31, 2004.
  • 6Divested certain Italian operations and recorded associated losses and impairment charges, impacting reported results.
  • 7Introduced new debt facilities, including a $500 million senior unsecured revolving credit agreement and a receivables-backed facility, enhancing financial flexibility.

Frequently Asked Questions

The primary reason for filing this amended 10-K was to correct an inadvertent error in the original filing's 'Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements.' Specifically, the auditor's report incorrectly referenced Note 2 for information regarding the adoption of SFAS No. 146, when this information was actually disclosed in Note 1. No other financial statements or core disclosures were amended.

Equifax showed strong financial performance in 2004. Revenue grew to $1,272.8 million from $1,210.7 million in 2003. Net income saw a substantial increase to $234.7 million in 2004 from $164.9 million in 2003. This growth was primarily driven by an increase in income from continuing operations, despite losses reported from discontinued operations.

According to the report, management assessed the effectiveness of Equifax's internal control over financial reporting as of December 31, 2004, and concluded that they were effective. This assessment was based on criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The independent registered public accounting firm, Ernst & Young LLP, also issued an unqualified opinion on management's assessment and the effectiveness of the company's internal control over financial reporting.

In 2004, Equifax acquired several smaller independent credit reporting agencies in the U.S. and Canada for approximately $17.4 million. The company also divested its Italian operations in the fourth quarter of 2004, classifying them as discontinued operations. The financial impact of these acquisitions and divestitures on the overall results was considered not material.