10-KPeriod: FY2006

EQUIFAX INC Annual Report, Year Ended Dec 31, 2006

Filed February 28, 2007For Securities:EFX

Summary

Equifax Inc. reported strong performance for the fiscal year ended December 31, 2006, with operating revenue increasing by 7% to $1.55 billion. The company experienced broad-based growth across its segments, driven by its North America, Europe, and Latin America operations. Net income rose to $274.5 million, a significant increase from $246.5 million in the prior year, reflecting effective management and strategic initiatives. Looking ahead, Equifax announced a major development with the agreement to acquire TALX Corporation for approximately $1.4 billion, signaling a strategic push for significant growth and market expansion. The company also highlighted ongoing investments in technology and product development to maintain its competitive edge in the information services sector. While the company faces risks inherent in its competitive and regulated industry, including economic fluctuations and data security concerns, its diversified revenue streams and strong operational performance position it well for future growth.

Key Highlights

  • 1Operating revenue increased by 7% to $1.55 billion in 2006.
  • 2Net income grew to $274.5 million, up from $246.5 million in 2005.
  • 3Diluted EPS increased to $2.12 from $1.86 in the prior year.
  • 4The company announced a significant agreement to acquire TALX Corporation for approximately $1.4 billion, subject to approvals.
  • 5North America remains the largest segment, contributing 80% of revenue, with strong growth in Marketing Services and Personal Solutions.
  • 6Latin America showed robust growth, with revenue up 21% driven by pricing increases and new product introductions.
  • 7The company maintained effective internal controls over financial reporting as of December 31, 2006, according to management and independent auditors.

Frequently Asked Questions

Equifax reported a solid financial performance in 2006. Operating revenue grew by 7% to $1.55 billion, and net income increased to $274.5 million, or $2.12 per diluted share, up from $246.5 million, or $1.86 per diluted share, in 2005. This growth was driven by broad-based performance across its North America, Europe, and Latin America segments.

Equifax's strategy focuses on increasing customer spending on information-related services through new product development, leveraging its analytical and enabling technologies, investing in new data sources, and expanding into emerging markets through acquisitions and partnerships. A major strategic move announced was the pending acquisition of TALX Corporation for approximately $1.4 billion, aimed at significant market expansion.

Key risks identified include changes in economic conditions impacting consumer credit demand, heightened competition, the ability to develop and market new technologies, security risks related to data access, integration risks from acquisitions (like the pending TALX deal), and changes in laws and regulations governing data privacy and protection. The company also faces litigation risks and potential impacts from intellectual property claims.

North America, the largest segment, saw a 5% revenue increase, with Marketing Services and Personal Solutions showing strong double-digit growth. Europe experienced an 8% revenue increase, primarily driven by the UK market. Latin America demonstrated the strongest growth with a 21% revenue increase, attributed to pricing strategies, new product introductions, and favorable foreign currency impacts.