Summary
Equifax Inc. reported strong financial performance for the third quarter and the first nine months of 2016, demonstrating significant growth driven by both organic expansion and strategic acquisitions. Total operating revenue increased by 20% and 17% for the respective periods compared to 2015, largely propelled by the acquisition of Veda and solid organic growth across its U.S. Information Solutions and Workforce Solutions segments. Net income attributable to Equifax saw a substantial increase, rising 13% for the quarter and 15% for the nine-month period. This growth was supported by improved operating income across all segments, despite higher interest expenses related to debt incurred for the Veda acquisition. The company's balance sheet reflects a significant increase in assets, primarily due to goodwill and intangible assets arising from the Veda acquisition, alongside a substantial increase in long-term debt to finance this transaction. Equifax's liquidity remains strong, with ample cash flow from operations and available credit facilities to support its ongoing business and strategic initiatives.
Financial Highlights
53 data points| Revenue | $804.10M |
| SG&A Expenses | $233.40M |
| Operating Expenses | $592.00M |
| Operating Income | $212.10M |
| Interest Expense | $24.30M |
| Net Income | $132.80M |
| EPS (Basic) | $1.11 |
| EPS (Diluted) | $1.09 |
| Shares Outstanding (Basic) | 119.50M |
| Shares Outstanding (Diluted) | 121.30M |
Key Highlights
- 1Operating revenue increased by 20% in Q3 2016 and 17% for the nine months ended September 30, 2016, compared to the prior year, primarily driven by the acquisition of Veda and organic growth.
- 2Net income attributable to Equifax rose by 13% in Q3 2016 and 15% for the nine months ended September 30, 2016, reflecting improved profitability.
- 3The acquisition of Veda for approximately $1.7 billion on February 24, 2016, significantly contributed to revenue and asset growth, adding substantial goodwill and intangible assets.
- 4Total assets grew from $4.5 billion at the end of 2015 to $6.8 billion at September 30, 2016, largely due to acquisitions.
- 5Long-term debt increased substantially from $1.1 billion at December 31, 2015, to $2.1 billion at September 30, 2016, primarily to finance the Veda acquisition.
- 6Operating income in the U.S. Information Solutions segment increased by 19% for Q3 and 8% for the nine months, with operating margins improving significantly.
- 7Workforce Solutions also demonstrated strong performance, with operating income up 40% in Q3 and 37% for the nine months, alongside expanded operating margins.