10-KPeriod: FY2009

EQUIFAX INC Annual Report, Year Ended Dec 31, 2009

Filed February 23, 2010For Securities:EFX

Summary

Equifax Inc. reported a decrease in operating revenue for the fiscal year ended December 31, 2009, primarily due to the continued global economic weakness impacting its U.S. Consumer Information Solutions and International segments. Despite the revenue decline, the company demonstrated resilience through its TALX segment, which experienced significant revenue growth. Management focused on cost management initiatives and process improvements to maintain operating margins. The company also made strategic acquisitions in 2009, including IXI Corporation and Rapid Reporting Verification Company, to enhance its data capabilities and service offerings. Financially, Equifax managed its debt effectively, reducing its total debt by approximately $45.2 million. The company also continued its share repurchase program, demonstrating a commitment to returning value to shareholders. Looking ahead to 2010, Equifax anticipated a gradual improvement in revenue growth, driven by anticipated modest GDP growth and the positive impact of new credit card regulatory changes. The company remained focused on diversifying its revenue streams through new product innovation, technology investment, and international expansion.

Financial Highlights

53 data points
Beta

Revenue

$1.72B

Net Income

$233.90M

13.6% Net Margin

EPS (Diluted)

$1.83

Total Assets

$3.55B

Cash & Equivalents

$103.10M

Free Cash Flow

$418.40M

Financial Statements
Beta
Revenue$1.72B
SG&A Expenses$470.20M
Operating Expenses$1.33B
Operating Income$381.80M
Interest Expense$57.00M
Net Income$233.90M
EPS (Basic)$1.85
EPS (Diluted)$1.83
Shares Outstanding (Basic)126.30M
Shares Outstanding (Diluted)127.90M

Key Highlights

  • 1Operating revenue decreased by 6% to $1.82 billion in 2009 compared to 2008, largely due to global economic weakness affecting key segments.
  • 2The TALX segment showed strong performance, with operating revenue increasing by 14% to $346.4 million, driven by The Work Number and Tax and Talent Management services.
  • 3Operating income decreased by 15% to $407.6 million, and operating margin compressed to 22.3% from 24.7% in 2008, reflecting the impact of lower revenues and restructuring charges.
  • 4Net income attributable to Equifax decreased by 14% to $233.9 million, with diluted earnings per share falling to $1.83 from $2.09 in the prior year.
  • 5The company completed two strategic acquisitions in 2009: IXI Corporation for $124.0 million and Rapid Reporting Verification Company for $72.5 million.
  • 6Total debt was reduced by $45.2 million to $1.17 billion by year-end 2009.
  • 7Equifax repurchased 0.9 million shares of its common stock for $23.8 million during 2009.

Frequently Asked Questions

The primary driver of Equifax's revenue decline in 2009 was the continued global economic weakness, which significantly impacted demand for its U.S. Consumer Information Solutions and International business segments.

The TALX segment performed well, showing strong revenue growth. This was attributed to increased volumes in employment and income verification services (The Work Number) and growth in Tax and Talent Management services, partly due to increased unemployment claims activity.

Yes, Equifax made two significant acquisitions in 2009: IXI Corporation, a provider of consumer wealth and asset data, for $124.0 million, and Rapid Reporting Verification Company, a provider of IRS tax transcript information and social security number authentication services, for $72.5 million.

Equifax managed its debt effectively by reducing its total debt by $45.2 million, bringing the total debt to $1.17 billion by the end of 2009. This was achieved through various financing activities including the issuance of new senior notes and repayment of outstanding commercial paper.