Summary
Equifax Inc. reported a decrease in revenue and net income for the three and six months ended June 30, 2009, compared to the same periods in the prior year. This decline is largely attributed to the ongoing global economic weakness impacting its U.S. Consumer Information Solutions and International segments, as well as unfavorable foreign exchange rates. Despite the revenue pressures, the company demonstrated resilience by managing operating expenses, particularly through headcount reductions and cost containment initiatives, which helped to mitigate the impact on operating margins. The TALX segment, however, showed significant strength with increased revenue and operating income, driven by higher volumes in The Work Number® service and growth in Tax and Talent Management Services. The company also maintained a strong liquidity position, with substantial cash provided by operating activities and available credit facilities, enabling it to manage its debt structure and fund operations. While facing economic headwinds, Equifax continues to focus on strategic initiatives to control costs and drive future growth.
Financial Highlights
27 data points| Revenue | $429.10M |
| SG&A Expenses | $111.10M |
| Operating Expenses | $327.10M |
| Operating Income | $102.00M |
| Interest Expense | $14.50M |
| Net Income | $59.60M |
| EPS (Basic) | $0.47 |
| EPS (Diluted) | $0.47 |
| Shares Outstanding (Basic) | 126.30M |
| Shares Outstanding (Diluted) | 127.80M |
Key Highlights
- 1Total operating revenue decreased by 9% for the three months ended June 30, 2009, to $455.4 million, and by 10% for the six months ended June 30, 2009, to $908.3 million, primarily due to economic weakness and foreign currency impacts.
- 2Net income attributable to Equifax decreased by 16% for both the three and six months ended June 30, 2009, compared to the prior year, reflecting lower operating income and a higher effective tax rate.
- 3The TALX segment was a standout performer, with revenue increasing by 12% for the three months and 11% for the six months ended June 30, 2009, and operating income showing a 47% increase for both periods.
- 4Operating expenses were managed effectively, decreasing by 7% for both the three and six months ended June 30, 2009, due to cost containment efforts, including headcount reductions and renegotiated vendor contracts.
- 5The company maintained a solid liquidity position, with cash provided by operating activities totaling $145.6 million for the six months ended June 30, 2009, and $488.9 million available under its committed credit facilities.
- 6Capital expenditures were reduced to $34.0 million for the six months ended June 30, 2009, down from $58.4 million in the prior year, reflecting the completion of data center infrastructure improvements.