10-QPeriod: Q1 FY2011

EQUIFAX INC Quarterly Report for Q1 Ended Mar 31, 2011

Filed April 28, 2011For Securities:EFX

Summary

Equifax Inc. reported a solid first quarter for 2011, with total operating revenue increasing by 7% year-over-year to $472.6 million. This growth was driven by strong performance across all operating segments, particularly in U.S. Consumer Information Solutions and International markets. Net income attributable to Equifax rose slightly to $57.3 million, or $0.46 per diluted share, up from $56.7 million, or $0.44 per diluted share, in the prior year period. The company highlighted its ongoing strategy of revenue diversification through new product innovation, strategic acquisitions, and international expansion. The company's financial position remains strong, with robust operating cash flow and ample availability under its revolving credit facility. Equifax also demonstrated a commitment to returning capital to shareholders, as evidenced by an increase in dividends paid. Management remains focused on expense management and process improvement initiatives to navigate the evolving market landscape and capitalize on emerging opportunities, particularly in differentiated decisioning solutions and advanced analytics.

Financial Highlights

51 data points
Beta

Revenue

$472.60M

Net Income

$57.30M

12.1% Net Margin

EPS (Diluted)

$0.46

Total Assets

$3.47B

Cash & Equivalents

$86.90M

Free Cash Flow

$23.10M

Financial Statements
Beta
Revenue$472.60M
SG&A Expenses$128.80M
Operating Expenses$363.50M
Operating Income$109.10M
Interest Expense$13.80M
Net Income$57.30M
EPS (Basic)$0.47
EPS (Diluted)$0.46
Shares Outstanding (Basic)122.80M
Shares Outstanding (Diluted)124.70M

Key Highlights

  • 1Operating revenue grew 7% to $472.6 million in Q1 2011, compared to $443.0 million in Q1 2010.
  • 2Net income attributable to Equifax increased to $57.3 million, or $0.46 per diluted share, from $56.7 million, or $0.44 per diluted share, in the prior year.
  • 3U.S. Consumer Information Solutions segment revenue increased 5% year-over-year, driven by Mortgage Solutions and Consumer Financial Marketing Services.
  • 4International segment revenue saw a 9% increase, supported by growth in Latin America, Europe, and Canada.
  • 5The company extended its Senior Credit Facility maturity to February 2015, with $475.4 million available at March 31, 2011.
  • 6Dividends paid to Equifax shareholders increased significantly to $19.6 million in Q1 2011, up from $5.0 million in Q1 2010, reflecting a dividend increase to $0.16 per share.
  • 7Goodwill increased by $31.4 million during the quarter, primarily due to acquisitions in the UK and Latin America.

Frequently Asked Questions

Revenue growth of 7% to $472.6 million was primarily driven by strong execution of strategic initiatives across all operating segments, including U.S. Consumer Information Solutions and International, along with favorable foreign exchange rates contributing to international revenue.

Net income attributable to Equifax increased slightly to $57.3 million in Q1 2011 from $56.7 million in Q1 2010. Diluted earnings per share attributable to Equifax also saw an increase to $0.46 from $0.44, benefiting from a reduction in weighted-average shares outstanding.

Equifax maintains a strong liquidity position, with substantial cash flow from operations and an available $475.4 million under its Senior Credit Facility, which has been extended to February 2015. The company expects sufficient resources to meet its anticipated working capital and other cash requirements.

During the first quarter of 2011, Equifax invested $30.7 million in acquisitions, including businesses in the United Kingdom and Latin America. They also extended their Senior Credit Facility and reduced its borrowing limits. Additionally, commercial paper outstanding increased to $23.0 million.