10-KPeriod: FY2008

EQUIFAX INC Annual Report, Year Ended Dec 31, 2008

Filed February 26, 2009For Securities:EFX

Summary

Equifax Inc.'s (EFX) 2008 10-K filing reflects a company navigating a challenging economic environment. Despite a 5% increase in operating revenue to $1.9 billion, driven significantly by the full-year inclusion of TALX, the company experienced an 8% decline in its core U.S. Consumer Information Solutions (USCIS) segment due to the weakening U.S. credit and retail economy. Earnings per diluted share remained flat year-over-year at $2.09. The company implemented restructuring charges of $16.8 million related to business realignments and managed its expenses effectively, with total debt decreasing by $168 million. Looking ahead, Equifax anticipates continued economic headwinds, particularly impacting its USCIS segment, but remains focused on strategic initiatives like new product innovation and international expansion. The company's financial position remains stable, supported by strong cash flows from operations and available credit facilities. Investors should monitor the company's ability to manage the impact of the economic downturn on its core consumer credit business while capitalizing on growth opportunities in its other segments, particularly TALX and its international operations.

Financial Highlights

31 data points
Beta

Revenue

$1.81B

Net Income

$272.80M

15.0% Net Margin

EPS (Diluted)

$2.09

Cash & Equivalents

$58.20M

Free Cash Flow

$448.10M

Financial Statements
Beta
Revenue$1.81B
SG&A Expenses$490.60M
Operating Expenses$1.37B
Operating Income$439.00M
Interest Expense$71.30M
Net Income$272.80M
EPS (Basic)$2.13
EPS (Diluted)$2.09
Shares Outstanding (Basic)128.10M
Shares Outstanding (Diluted)130.40M

Key Highlights

  • 1Operating revenue increased 5% to $1.9 billion, largely due to the full year impact of the TALX acquisition.
  • 2Diluted Earnings Per Share (EPS) was $2.09, a 4% increase from the prior year, though net income remained flat.
  • 3The U.S. Consumer Information Solutions (USCIS) segment saw an 8% revenue decline, attributed to the weakening U.S. economy.
  • 4Equifax repurchased 4.5 million shares of common stock for $155.7 million during 2008, demonstrating a commitment to shareholder returns.
  • 5Total debt decreased by $168 million to $1.22 billion, indicating a focus on strengthening the balance sheet.
  • 6The company incurred $16.8 million in restructuring and asset write-down charges related to business realignments.

Frequently Asked Questions

Equifax reported a 5% increase in operating revenue to $1.9 billion in 2008. This growth was primarily driven by the full-year inclusion of TALX, which was acquired in May 2007. However, the core U.S. Consumer Information Solutions (USCIS) segment experienced an 8% revenue decline due to the challenging economic conditions affecting the U.S. credit and retail markets.

The global economic downturn and financial market volatility led to reduced demand for Equifax's products and services, particularly impacting the USCIS segment. Management noted that a number of customers reduced their activity levels. The company also experienced increased pricing pressures and a decline in its operating margin from 26.4% in 2007 to 24.7% in 2008, partly due to these economic factors and restructuring charges.

Equifax is focusing on managing and reducing expenses to preserve operating margins, earnings, and cash flows. The company is also realigning resources to pursue key strategic objectives, including new product innovation and international expansion. They anticipate continued economic challenges impacting their USCIS segment in 2009 and are taking steps to streamline operations and increase efficiency within that segment.

Equifax maintained a strong financial position with $444.7 million in cash provided by operating activities in 2008. Total debt decreased by $168 million to $1.22 billion. The company had $427.0 million available under its Senior Credit Facility at December 31, 2008, indicating sufficient liquidity to meet its foreseeable needs.