10-KPeriod: FY2015

EQUIFAX INC Annual Report, Year Ended Dec 31, 2015

Filed February 24, 2016For Securities:EFX

Summary

Equifax Inc. reported a strong financial performance for the fiscal year ending December 31, 2015, with total operating revenue reaching $2.66 billion, a 9% increase year-over-year. This growth was broad-based and largely organic, driven by improvements across its core segments, particularly U.S. Information Solutions (USIS) and Workforce Solutions. The company's strategic focus on innovation, data leverage, and market expansion appears to be yielding positive results, with operating income up 9% and net income attributable to Equifax rising 17% to $429.1 million. Looking ahead, Equifax announced a significant pending acquisition of Veda Group Limited for approximately $1.7 billion, signaling a strategic move to expand its global footprint and enhance its data solutions offerings. While the company faces ongoing risks related to economic conditions, competition, and regulatory changes, its diversified business model and consistent revenue growth provide a solid foundation. Investors should note the company's commitment to shareholder returns, evidenced by its share repurchase program and increasing dividends.

Financial Highlights

53 data points
Beta

Revenue

$2.66B

Net Income

$429.10M

16.1% Net Margin

EPS (Diluted)

$3.55

Total Assets

$4.50B

Cash & Equivalents

$93.30M

Free Cash Flow

$769.10M

Financial Statements
Beta
Revenue$2.66B
SG&A Expenses$884.30M
Operating Expenses$1.97B
Operating Income$693.90M
Interest Expense$63.80M
Net Income$429.10M
EPS (Basic)$3.61
EPS (Diluted)$3.55
Shares Outstanding (Basic)118.70M
Shares Outstanding (Diluted)120.90M

Key Highlights

  • 1Operating revenue grew by 9% to $2.66 billion in 2015, driven by strong performance in USIS and Workforce Solutions segments.
  • 2Net income attributable to Equifax increased by 17% to $429.1 million, reflecting improved profitability.
  • 3The company announced a significant proposed acquisition of Veda Group Limited for approximately $1.7 billion, aimed at expanding its international presence.
  • 4Operating margin remained robust at 26.1%, demonstrating efficient cost management despite investments in growth.
  • 5Workforce Solutions segment showed particularly strong growth with revenue up 18% and operating margin expanding by 5.1 percentage points.
  • 6Equifax continued its commitment to shareholder returns, repurchasing $196.3 million of common stock and increasing dividends paid.
  • 7The company maintains a strong financial position with substantial cash from operations and available credit facilities to support future growth and investments.

Frequently Asked Questions

Equifax reported a 9% increase in operating revenue for 2015, reaching $2.66 billion. This growth was broad-based across its segments, with notable contributions from U.S. Information Solutions (USIS) and Workforce Solutions, benefiting from increased demand in mortgage, auto, financial services, and government verticals.

The acquisition of Veda Group Limited for approximately $1.7 billion is a major strategic move for Equifax. It is expected to significantly expand Equifax's presence in Australia and New Zealand, bolstering its global information solutions business and enhancing its data and analytics capabilities internationally.

Equifax demonstrated improved profitability in 2015. Net income attributable to Equifax increased by 17% to $429.1 million. Diluted earnings per share from continuing operations also saw a substantial rise, growing by 20% to $3.55.

Equifax identified several key risks including uncertain general economic conditions, competition, the potential loss of access to data sources, the need for timely new product introductions, security breaches, and evolving government regulations in both the U.S. and internationally. The company also noted risks associated with its significant international operations and foreign currency fluctuations.