x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
Georgia
(State
or other jurisdiction of
incorporation
or organization)
|
58-0401110
(I.R.S.
Employer
Identification
No.)
|
1550
Peachtree Street, N.W., Atlanta, Georgia
(Address
of principal executive offices)
|
30309
(Zip
Code)
|
Large
accelerated filer x
|
Accelerated
filer o
|
Non-accelerated
filer o
(Do
not check if a smaller
reporting
company)
|
Smaller
reporting company o
|
Page
|
||
PART
I.
|
Financial
Information
|
4
|
Item 1.
|
Financial
Statements (Unaudited)
|
4
|
Consolidated
Statements of Income—Three Months Ended March 31, 2010 and
2009
|
4
|
|
Consolidated
Balance Sheets—March 31, 2010 and December 31,
2009
|
5
|
|
Consolidated
Statements of Cash Flows—Three Months Ended March 31, 2010 and
2009
|
6
|
|
Consolidated
Statements of Equity and Other Comprehensive Income—Three Months Ended
March 31, 2010
|
7
|
|
Notes
to Consolidated Financial Statements
|
8
|
|
Item 2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
17
|
Item 3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
30
|
Item 4.
|
Controls
and Procedures
|
30
|
PART II.
|
Other
Information
|
31
|
Item 1.
|
Legal
Proceedings
|
31
|
Item 1A.
|
Risk
Factors
|
31
|
Item 2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
31
|
Item 6.
|
Exhibits
|
32
|
Signatures
|
33
|
|
Index
to Exhibits
|
34
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
(In
millions, except per share amounts)
|
(Unaudited)
|
|||||||
Operating
revenue
|
$ | 461.3 | $ | 446.6 | ||||
Operating
expenses:
|
||||||||
Cost
of services (exclusive of depreciation and amortization
below)
|
200.3 | 187.0 | ||||||
Selling,
general and administrative expenses
|
112.4 | 122.0 | ||||||
Depreciation
and amortization
|
40.9 | 36.6 | ||||||
Total
operating expenses
|
353.6 | 345.6 | ||||||
Operating
income
|
107.7 | 101.0 | ||||||
Interest
expense
|
(14.2 | ) | (14.3 | ) | ||||
Other
income, net
|
(0.5 | ) | 2.4 | |||||
Consolidated
income from continuing operations before income taxes
|
93.0 | 89.1 | ||||||
Provision
for income taxes
|
(35.0 | ) | (34.1 | ) | ||||
Consolidated
income from continuing operations
|
58.0 | 55.0 | ||||||
Discontinued
operations, net of tax
|
0.6 | 1.1 | ||||||
Consolidated
net income
|
58.6 | 56.1 | ||||||
Less: Net
income attributable to noncontrolling interests
|
(1.9 | ) | (1.7 | ) | ||||
Net
income attributable to Equifax
|
$ | 56.7 | $ | 54.4 | ||||
Amounts
attributable to Equifax:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 56.1 | $ | 53.3 | ||||
Discontinued
operations, net of tax
|
0.6 | 1.1 | ||||||
Net
income attributable to Equifax
|
$ | 56.7 | $ | 54.4 | ||||
Basic
earnings per common share:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 0.44 | $ | 0.42 | ||||
Discontinued
operations attributable to Equifax
|
0.01 | 0.01 | ||||||
Net
income attributable to Equifax
|
$ | 0.45 | $ | 0.43 | ||||
Weighted-average
shares used in computing basic earnings per share
|
126.3 | 126.2 | ||||||
Diluted
earnings per common share:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 0.44 | $ | 0.42 | ||||
Discontinued
operations attributable to Equifax
|
- | 0.01 | ||||||
Net
income attributable to Equifax
|
$ | 0.44 | $ | 0.43 | ||||
Weighted-average
shares used in computing diluted earnings per share
|
128.1 | 127.4 | ||||||
Dividends
per common share
|
$ | 0.04 | $ | 0.04 |
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In
millions, except par values)
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 77.1 | $ | 103.1 | ||||
Trade
accounts receivable, net of allowance for doubtful accounts of $12.3 and
$15.1 at March 31, 2010 and December 31, 2009,
respectively
|
258.5 | 258.7 | ||||||
Prepaid
expenses
|
37.7 | 27.6 | ||||||
Other
current assets
|
73.5 | 27.4 | ||||||
Total
current assets
|
446.8 | 416.8 | ||||||
Property
and equipment:
|
||||||||
Capitalized
internal-use software and system costs
|
302.4 | 316.6 | ||||||
Data
processing equipment and furniture
|
180.7 | 184.2 | ||||||
Land,
buildings and improvements
|
165.3 | 164.5 | ||||||
Total
property and equipment
|
648.4 | 665.3 | ||||||
Less
accumulated depreciation and amortization
|
(338.9 | ) | (346.0 | ) | ||||
Total
property and equipment, net
|
309.5 | 319.3 | ||||||
Goodwill
|
1,916.2 | 1,943.2 | ||||||
Indefinite-lived
intangible assets
|
95.6 | 95.5 | ||||||
Purchased
intangible assets, net
|
645.7 | 687.0 | ||||||
Other
assets, net
|
91.8 | 88.7 | ||||||
Total
assets
|
$ | 3,505.6 | $ | 3,550.5 | ||||
LIABILITIES
AND EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Short-term
debt and current maturities
|
$ | 157.2 | $ | 154.2 | ||||
Capitalized
lease obligation
|
- | 29.0 | ||||||
Accounts
payable
|
26.0 | 35.9 | ||||||
Accrued
expenses
|
62.6 | 67.7 | ||||||
Accrued
salaries and bonuses
|
28.7 | 58.1 | ||||||
Deferred
revenue
|
68.6 | 69.8 | ||||||
Other
current liabilities
|
86.3 | 77.5 | ||||||
Total
current liabilities
|
429.4 | 492.2 | ||||||
Long-term
debt
|
990.6 | 990.9 | ||||||
Deferred
income tax liabilities, net
|
248.2 | 249.3 | ||||||
Long-term
pension and other postretirement benefit liabilities
|
119.9 | 142.5 | ||||||
Other
long-term liabilities
|
54.3 | 60.6 | ||||||
Total
liabilities
|
1,842.4 | 1,935.5 | ||||||
Commitments
and Contingencies (see Note 5)
|
||||||||
Equifax
shareholders' equity:
|
||||||||
Preferred
stock, $0.01 par value: Authorized shares - 10.0; Issued shares -
none
|
- | - | ||||||
Common
stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3
at March 31, 2010 and December 31, 2009; Outstanding shares - 126.6 and
126.2 at March 31, 2010 and December 31, 2009,
respectively
|
236.6 | 236.6 | ||||||
Paid-in
capital
|
1,097.3 | 1,102.0 | ||||||
Retained
earnings
|
2,545.8 | 2,494.2 | ||||||
Accumulated
other comprehensive loss
|
(330.1 | ) | (318.7 | ) | ||||
Treasury
stock, at cost, 60.6 shares and 61.0 shares at March 31, 2010 and December
31, 2009, respectively
|
(1,860.5 | ) | (1,871.7 | ) | ||||
Stock
held by employee benefits trusts, at cost, 2.1 shares at March 31, 2010
and December 31, 2009
|
(41.2 | ) | (41.2 | ) | ||||
Total
Equifax shareholders' equity
|
1,647.9 | 1,601.2 | ||||||
Noncontrolling
interests
|
15.3 | 13.8 | ||||||
Total
equity
|
1,663.2 | 1,615.0 | ||||||
Total
liabilities and equity
|
$ | 3,505.6 | $ | 3,550.5 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
(In
millions)
|
(Unaudited)
|
|||||||
Operating
activities:
|
||||||||
Consolidated
net income
|
$ | 58.6 | $ | 56.1 | ||||
Adjustments
to reconcile consolidated net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
42.5 | 38.2 | ||||||
Stock-based
compensation expense
|
4.4 | 3.7 | ||||||
Tax
effects of stock-based compensation plans
|
1.4 | (0.1 | ) | |||||
Excess
tax benefits from stock-based compensation plans
|
(1.4 | ) | (0.2 | ) | ||||
Deferred
income taxes
|
(0.1 | ) | 3.2 | |||||
Changes
in assets and liabilities, excluding effects of
acquisitions:
|
||||||||
Accounts
receivable, net
|
(5.8 | ) | (10.3 | ) | ||||
Prepaid
expenses and other current assets
|
(7.9 | ) | (3.3 | ) | ||||
Other
assets
|
3.5 | (0.3 | ) | |||||
Current
liabilities, excluding debt
|
(34.1 | ) | (28.7 | ) | ||||
Other
long-term liabilities, excluding debt
|
(23.4 | ) | (13.8 | ) | ||||
Cash
provided by operating activities
|
37.7 | 44.5 | ||||||
Investing
activities:
|
||||||||
Capital
expenditures
|
(50.0 | ) | (15.0 | ) | ||||
Acquisitions,
net of cash acquired
|
(6.0 | ) | - | |||||
Dividend
from unconsolidated affiliates
|
- | 1.0 | ||||||
Cash
used in investing activities
|
(56.0 | ) | (14.0 | ) | ||||
Financing
activities:
|
||||||||
Net
short-term borrowings
|
2.7 | 260.1 | ||||||
Net
repayments under long-term revolving credit facilities
|
(4.6 | ) | (270.0 | ) | ||||
Proceeds
from issuance of long-term debt
|
1.4 | - | ||||||
Payments
on long-term debt
|
(3.1 | ) | (6.4 | ) | ||||
Treasury
stock purchases
|
(9.4 | ) | (9.1 | ) | ||||
Dividends
paid to Equifax shareholders
|
(5.0 | ) | (5.0 | ) | ||||
Dividends
paid to noncontrolling interests
|
(0.3 | ) | (0.4 | ) | ||||
Proceeds
from exercise of stock options
|
11.6 | 3.4 | ||||||
Excess
tax benefits from stock-based compensation plans
|
1.4 | 0.2 | ||||||
Other
|
(0.2 | ) | (0.5 | ) | ||||
Cash
used in financing activities
|
(5.5 | ) | (27.7 | ) | ||||
Effect
of foreign currency exchange rates on cash and cash
equivalents
|
(2.2 | ) | (1.0 | ) | ||||
(Decrease)
increase in cash and cash equivalents
|
(26.0 | ) | 1.8 | |||||
Cash
and cash equivalents, beginning of period
|
103.1 | 58.2 | ||||||
Cash
and cash equivalents, end of period
|
$ | 77.1 | $ | 60.0 |
Equifax Shareholders
|
||||||||||||||||||||||||||||||||||||
Stock
|
||||||||||||||||||||||||||||||||||||
Accumulated
|
Held By
|
|||||||||||||||||||||||||||||||||||
Common Stock
|
Other
|
Employee
|
||||||||||||||||||||||||||||||||||
Shares
|
Paid-In
|
Retained
|
Comprehensive
|
Treasury
|
Benefits
|
Noncontrolling
|
Total
|
|||||||||||||||||||||||||||||
Outstanding
|
Amount
|
Capital
|
Earnings
|
Loss
|
Stock
|
Trusts
|
Interests
|
Equity
|
||||||||||||||||||||||||||||
(In
millions, except per share amounts)
|
||||||||||||||||||||||||||||||||||||
Balance,
December 31, 2009
|
126.2 | $ | 236.6 | $ | 1,102.0 | $ | 2,494.2 | $ | (318.7 | ) | $ | (1,871.7 | ) | $ | (41.2 | ) | $ | 13.8 | $ | 1,615.0 | ||||||||||||||||
Net
income
|
- | - | - | 56.7 | - | - | - | 1.9 | 58.6 | |||||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | (11.4 | ) | - | - | (0.1 | ) | (11.5 | ) | ||||||||||||||||||||||||
Shares
issued under stock and benefit plans, net of minimum tax
withholdings
|
0.7 | - | (10.6 | ) | - | - | 20.6 | - | - | 10.0 | ||||||||||||||||||||||||||
Treasury
stock purchased under share repurchase program ($31.43 per
share)*
|
(0.3 | ) | - | - | - | - | (9.4 | ) | - | - | (9.4 | ) | ||||||||||||||||||||||||
Cash
dividends ($0.04 per share)
|
- | - | - | (5.1 | ) | - | - | - | - | (5.1 | ) | |||||||||||||||||||||||||
Dividends
paid to employee benefits trusts
|
- | - | 0.1 | - | - | - | - | - | 0.1 | |||||||||||||||||||||||||||
Stock-based
compensation expense
|
- | - | 4.4 | - | - | - | - | - | 4.4 | |||||||||||||||||||||||||||
Tax
effects of stock-based compensation plans
|
- | - | 1.4 | - | - | - | - | - | 1.4 | |||||||||||||||||||||||||||
Dividends
paid to noncontrolling interests
|
- | - | - | - | - | - | - | (0.3 | ) | (0.3 | ) | |||||||||||||||||||||||||
Balance,
March 31, 2010
|
126.6 | $ | 236.6 | $ | 1,097.3 | $ | 2,545.8 | $ | (330.1 | ) | $ | (1,860.5 | ) | $ | (41.2 | ) | $ | 15.3 | $ | 1,663.2 |
*
|
At
March 31, 2010, $112.5 million was authorized for future
purchases of common stock under our share repurchase
authorization.
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In
millions)
|
||||||||
Foreign
currency translation
|
$ | (113.1 | ) | $ | (99.9 | ) | ||
Unrecognized
actuarial losses and prior service cost related to our pension and other
postretirement benefit plans, net of accumulated tax of $124.0 and $124.9
at March 31, 2010 and December 31, 2009, respectively
|
(214.5 | ) | (216.2 | ) | ||||
Cash
flow hedging transactions, net of tax of $1.6 and $1.7 at March 31, 2010
and December 31, 2009, respectively
|
(2.5 | ) | (2.6 | ) | ||||
Accumulated
other comprehensive loss
|
$ | (330.1 | ) | $ | (318.7 | ) |
Three Months Ended March 31,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Equifax
|
Noncontrolling
|
Equifax
|
Noncontrolling
|
|||||||||||||||||||||
Shareholders
|
Interests
|
Total
|
Shareholders
|
Interests
|
Total
|
|||||||||||||||||||
(In
millions)
|
||||||||||||||||||||||||
Net
income
|
$ | 56.7 | $ | 1.9 | $ | 58.6 | $ | 54.4 | $ | 1.7 | $ | 56.1 | ||||||||||||
Other
comprehensive income:
|
||||||||||||||||||||||||
Foreign
currency translation adjustment
|
(13.2 | ) | (0.1 | ) | (13.3 | ) | 5.1 | (0.6 | ) | 4.5 | ||||||||||||||
Recognition
of prior service cost and actuarial losses related to our pension and
other postretirement benefit plans
|
1.7 | - | 1.7 | 1.6 | - | 1.6 | ||||||||||||||||||
Change
in cumulative loss from cash flow hedging transactions
|
0.1 | - | 0.1 | 0.3 | - | 0.3 | ||||||||||||||||||
Comprehensive
income
|
$ | 45.3 | $ | 1.8 | $ | 47.1 | $ | 61.4 | $ | 1.1 | $ | 62.5 |
Three Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
(In
millions)
|
||||||||
Weighted-average
shares outstanding (basic)
|
126.3 | 126.3 | ||||||
Effect
of dilutive securities:
|
||||||||
Stock
options and restricted stock units
|
1.8 | 1.1 | ||||||
Weighted-average
shares outstanding (diluted)
|
128.1 | 127.4 |
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
Description
|
Fair Value of
Assets
(Liabilities) at
March 31, 2010
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
(In
millions)
|
||||||||||||||||
Fair
Value Interest Rate Swaps(2)
|
$ | 3.3 | $ | - | $ | 3.3 | $ | - | ||||||||
Deferred
Compensation Plan(1)
|
(11.3 | ) | (11.3 | ) | - | - | ||||||||||
Total
|
$ | (8.0 | ) | $ | (11.3 | ) | $ | 3.3 | $ | - |
March 31,
|
||||
2010
|
||||
(In millions)
|
||||
Current
assets
|
$ | 5.0 | ||
Noncurrent
assets
|
42.8 | |||
Current
liabilities
|
(5.9 | ) | ||
Net
assets held for sale
|
$ | 41.9 |
U.S. Consumer
|
North America
|
North America
|
||||||||||||||||||||||
Information
|
Personal
|
Commercial
|
||||||||||||||||||||||
Solutions
|
International
|
TALX
|
Solutions
|
Solutions
|
Total
|
|||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Balance,
December 31, 2009
|
$ | 667.8 | $ | 335.7 | $ | 900.6 | $ | 1.8 | $ | 37.3 | $ | 1,943.2 | ||||||||||||
Foreign
currency translation
|
- | (11.0 | ) | - | - | 0.1 | (10.9 | ) | ||||||||||||||||
Tax
benefits of stock options exercised
|
- | - | (0.4 | ) | - | - | (0.4 | ) | ||||||||||||||||
Held
for sale
|
(15.7 | ) | - | - | - | - | (15.7 | ) | ||||||||||||||||
Balance,
March 31, 2010
|
$ | 652.1 | $ | 324.7 | $ | 900.2 | $ | 1.8 | $ | 37.4 | $ | 1,916.2 |
March 31, 2010
|
December 31, 2009
|
|||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Gross
|
Amortization
|
Net
|
Gross
|
Amortization
|
Net
|
|||||||||||||||||||
|
(In
millions)
|
|||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||
Purchased
data files
|
$ | 375.2 | $ | (247.6 | ) | $ | 127.6 | $ | 373.8 | $ | (240.6 | ) | $ | 133.2 | ||||||||||
Acquired
software and technology
|
42.3 | (26.2 | ) | 16.1 | 70.3 | (37.1 | ) | 33.2 | ||||||||||||||||
Customer
relationships
|
480.8 | (75.5 | ) | 405.3 | 488.0 | (70.8 | ) | 417.2 | ||||||||||||||||
Proprietary
database
|
125.0 | (57.8 | ) | 67.2 | 125.0 | (52.2 | ) | 72.8 | ||||||||||||||||
Non-compete
agreements
|
3.3 | (0.7 | ) | 2.6 | 3.3 | (0.5 | ) | 2.8 | ||||||||||||||||
Trade
names and other intangible assets
|
36.0 | (9.1 | ) | 26.9 | 36.0 | (8.2 | ) | 27.8 | ||||||||||||||||
Total
definite-lived intangible assets
|
$ | 1,062.6 | $ | (416.9 | ) | $ | 645.7 | $ | 1,096.4 | $ | (409.4 | ) | $ | 687.0 |
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In
millions)
|
||||||||
Commercial
paper, weighted-average rate of 0.3% and 0.4% in 2010 and 2009,
respectively
|
$ | 137.7 | $ | 135.0 | ||||
Notes,
4.25%, due in installments through May 2012
|
4.6 | 7.6 | ||||||
Notes,
7.34%, due in installments through May 2014
|
75.0 | 75.0 | ||||||
Notes,
4.45%, due December 2014
|
275.0 | 275.0 | ||||||
Notes,
6.30%, due July 2017
|
272.5 | 272.5 | ||||||
Debentures,
6.90%, due July 2028
|
125.0 | 125.0 | ||||||
Notes,
7.00%, due July 2037
|
250.0 | 250.0 | ||||||
Borrowings
under long-term revolving credit facilities, weighted-average rate of 0.9%
in 2009
|
- | 4.8 | ||||||
Capitalized
lease obligation
|
- | 29.0 | ||||||
Other
|
4.4 | 3.1 | ||||||
Total
debt
|
1,144.2 | 1,177.0 | ||||||
Less
short-term debt and current maturities
|
(157.2 | ) | (154.2 | ) | ||||
Less
capitalized lease obligation
|
- | (29.0 | ) | |||||
Less
unamortized discounts
|
(2.3 | ) | (2.4 | ) | ||||
Plus
fair value adjustments
|
5.9 | (0.5 | ) | |||||
Total
long-term debt, net
|
$ | 990.6 | $ | 990.9 |
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Three Months Ended March 31,
|
||||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In
millions)
|
||||||||||||||||
Service
cost
|
$ | 1.5 | $ | 1.4 | $ | 0.1 | $ | 0.1 | ||||||||
Interest
cost
|
8.7 | 8.8 | 0.5 | 0.5 | ||||||||||||
Expected
return on plan assets
|
(11.1 | ) | (11.3 | ) | (0.4 | ) | (0.4 | ) | ||||||||
Amortization
of prior service cost
|
0.2 | 0.2 | (0.1 | ) | (0.1 | ) | ||||||||||
Recognized
actuarial loss
|
2.2 | 2.2 | 0.3 | 0.3 | ||||||||||||
Total
net periodic benefit cost
|
$ | 1.5 | $ | 1.3 | $ | 0.4 | $ | 0.4 |
|
•
|
U.S.
Consumer Information Solutions
|
|
•
|
International
|
|
•
|
TALX
|
|
•
|
North
America Personal Solutions
|
|
•
|
North
America Commercial Solutions
|
Three Months Ended
|
||||||||
(In millions)
|
March 31,
|
|||||||
|
2010
|
2009
|
||||||
Operating revenue: | ||||||||
U.S.
Consumer Information Solutions
|
$ | 191.4 | $ | 203.7 | ||||
International
|
116.2 | 100.8 | ||||||
TALX
|
95.3 | 87.9 | ||||||
North
America Personal Solutions
|
39.7 | 38.4 | ||||||
North
America Commercial Solutions
|
18.7 | 15.8 | ||||||
Total
operating revenue
|
$ | 461.3 | $ | 446.6 | ||||
Three Months Ended
|
||||||||
(In
millions)
|
March 31,
|
|||||||
|
2010
|
2009
|
||||||
Operating income: | ||||||||
U.S.
Consumer Information Solutions
|
$ | 63.5 | $ | 73.8 | ||||
International
|
28.7 | 28.9 | ||||||
TALX
|
21.5 | 18.8 | ||||||
North
America Personal Solutions
|
10.0 | 6.0 | ||||||
North
America Commercial Solutions
|
4.4 | 2.3 | ||||||
General
Corporate Expense
|
(20.4 | ) | (28.8 | ) | ||||
Total
operating income
|
$ | 107.7 | $ | 101.0 |
Key Performance Indicators
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
(Dollars
in millions, except per share data)
|
||||||||
Operating
revenue
|
$ | 461.3 | $ | 446.6 | ||||
Operating
revenue change
|
3 | % | -10 | % | ||||
Operating
income
|
$ | 107.7 | $ | 101.0 | ||||
Operating
margin
|
23.3 | % | 22.6 | % | ||||
Net
income from continuing operations attributable to Equifax
|
$ | 56.1 | $ | 53.3 | ||||
Net
income attributable to Equifax
|
$ | 56.7 | $ | 54.4 | ||||
Diluted
earnings per share from continuing operations attributable to
Equifax
|
$ | 0.44 | $ | 0.42 | ||||
Diluted
earnings per share attributable to Equifax
|
$ | 0.44 | $ | 0.43 | ||||
Cash
provided by operating activities
|
$ | 37.7 | $ | 44.5 | ||||
Capital
expenditures
|
$ | 50.0 | $ | 15.0 |
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
Consolidated Operating
Revenue
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
U.S.
Consumer Information Solutions
|
$ | 191.4 | $ | 203.7 | $ | (12.3 | ) | -6 | % | |||||||
International
|
116.2 | 100.8 | 15.4 | 15 | % | |||||||||||
TALX
|
95.3 | 87.9 | 7.4 | 8 | % | |||||||||||
North
America Personal Solutions
|
39.7 | 38.4 | 1.3 | 3 | % | |||||||||||
North
America Commercial Solutions
|
18.7 | 15.8 | 2.9 | 18 | % | |||||||||||
Consolidated
operating revenue
|
$ | 461.3 | $ | 446.6 | $ | 14.7 | 3 | % |
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
Consolidated Operating
Expenses
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Consolidated
cost of services
|
$ | 200.3 | $ | 187.0 | $ | 13.3 | 7 | % | ||||||||
Consolidated
selling, general and administrative expenses
|
112.4 | 122.0 | (9.6 | ) | -8 | % | ||||||||||
Consolidated
depreciation and amortization expense
|
40.9 | 36.6 | 4.3 | 12 | % | |||||||||||
Consolidated
operating expenses
|
$ | 353.6 | $ | 345.6 | $ | 8.0 | 2 | % |
Three
Months Ended March 31,
|
||||||||||||||||
Change
|
||||||||||||||||
Consolidated
Operating Income
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Consolidated
operating revenue
|
$ | 461.3 | $ | 446.6 | $ | 14.7 | 3 | % | ||||||||
Consolidated
operating expenses
|
(353.6 | ) | (345.6 | ) | (8.0 | ) | 2 | % | ||||||||
Consolidated
operating income
|
$ | 107.7 | $ | 101.0 | $ | 6.7 | 7 | % | ||||||||
Consolidated
operating margin
|
23.3 | % | 22.6 | % |
0.7
|
% pts |
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
Consolidated Other Expense,
Net
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Consolidated
interest expense
|
$ | 14.2 | $ | 14.3 | $ | (0.1 | ) | -1 | % | |||||||
Consolidated
other income, net
|
0.5 | (2.4 | ) | 2.9 | -119 | % | ||||||||||
Consolidated
other expense, net
|
$ | 14.7 | $ | 11.9 | $ | 2.8 | 24 | % | ||||||||
Average
cost of debt
|
4.9 | % | 4.7 | % | ||||||||||||
Total
consolidated debt, net, at quarter end
|
$ | 1,147.8 | $ | 1,230.0 | $ | (82.2 | ) | -7 | % |
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
Consolidated Provision for Income
Taxes
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Consolidated
provision for income taxes
|
$ | 35.0 | $ | 34.1 | $ | 0.9 | 3 | % | ||||||||
Effective
income tax rate
|
37.6 | % | 38.3 | % |
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
Consolidated Net Income
|
2010
|
2009
|
$
|
%
|
||||||||||||
(In
millions, except per share amounts)
|
||||||||||||||||
Consolidated
operating income
|
$ | 107.7 | $ | 101.0 | $ | 6.7 | 7 | % | ||||||||
Consolidated
other expense, net
|
(14.7 | ) | (11.9 | ) | (2.8 | ) | 24 | % | ||||||||
Consolidated
provision for income taxes
|
(35.0 | ) | (34.1 | ) | (0.9 | ) | 3 | % | ||||||||
Consolidated
income from continuing operations
|
58.0 | 55.0 | 3.0 | 5 | % | |||||||||||
Discontinued
operations, net of tax
|
0.6 | 1.1 | (0.5 | ) | -45 | % | ||||||||||
Consolidated
net income
|
58.6 | 56.1 | 2.5 | 4 | % | |||||||||||
Net
income attributable to noncontrolling interests
|
(1.9 | ) | (1.7 | ) | (0.2 | ) | 13 | % | ||||||||
Net
income attributable to Equifax
|
$ | 56.7 | $ | 54.4 | $ | 2.3 | 4 | % | ||||||||
Diluted
earnings per common share attributable to Equifax
|
$ | 0.44 | $ | 0.43 | $ | 0.01 | 4 | % | ||||||||
Diluted
earnings per common share from continuing operations
|
$ | 0.44 | $ | 0.42 | $ | 0.02 | 5 | % | ||||||||
Weighted-average shares used in
computing diluted earnings per share
|
128.1 | 127.4 |
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
U.S. Consumer Information
Solutions
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Operating
revenue:
|
||||||||||||||||
Online
Consumer Information Solutions (OCIS)
|
$ | 119.8 | $ | 130.9 | $ | (11.1 | ) | -8 | % | |||||||
Mortgage
Solutions
|
23.2 | 25.4 | (2.2 | ) | -9 | % | ||||||||||
Consumer
Financial Marketing Services
|
30.2 | 27.3 | 2.9 | 10 | % | |||||||||||
Direct
Marketing Services
|
18.2 | 20.1 | (1.9 | ) | -9 | % | ||||||||||
Total
operating revenue
|
$ | 191.4 | $ | 203.7 | $ | (12.3 | ) | -6 | % | |||||||
%
of consolidated revenue
|
41 | % | 46 | % | ||||||||||||
Total
operating income
|
$ | 63.5 | $ | 73.8 | $ | (10.3 | ) | -14 | % | |||||||
Operating
margin
|
33.1 | % | 36.3 | % |
-3.2
|
% pts |
|
OCIS
|
|
Mortgage
Solutions
|
|
Consumer
Financial Marketing Services
|
|
Direct
Marketing Services
|
|
USCIS
Operating Margin
|
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
International
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Operating
revenue:
|
||||||||||||||||
Europe
|
$ | 33.9 | $ | 33.1 | $ | 0.8 | 2 | % | ||||||||
Latin
America
|
55.1 | 45.9 | 9.2 | 20 | % | |||||||||||
Canada
Consumer
|
27.2 | 21.8 | 5.4 | 25 | % | |||||||||||
Total
operating revenue
|
$ | 116.2 | $ | 100.8 | $ | 15.4 | 15 | % | ||||||||
%
of consolidated revenue
|
25 | % | 22 | % | ||||||||||||
Total
operating income
|
$ | 28.7 | $ | 28.9 | $ | (0.2 | ) | -1 | % | |||||||
Operating
margin
|
24.7 | % | 28.7 | % |
-4.0
|
% pts |
|
Europe
|
|
Latin
America
|
|
Canada
Consumer
|
|
International
Operating Margin
|
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
TALX
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Operating
revenue:
|
||||||||||||||||
The
Work Number
|
$ | 49.7 | $ | 40.6 | $ | 9.1 | 23 | % | ||||||||
Tax
and Talent Management Services
|
45.6 | 47.3 | (1.7 | ) | -4 | % | ||||||||||
Total
operating revenue
|
$ | 95.3 | $ | 87.9 | $ | 7.4 | 8 | % | ||||||||
%
of consolidated revenue
|
21 | % | 20 | % | ||||||||||||
Total
operating income
|
$ | 21.5 | $ | 18.8 | $ | 2.7 | 14 | % | ||||||||
Operating
margin
|
22.6 | % | 21.5 | % |
1.1
|
% pts |
|
Tax
and Talent Management Services
|
|
TALX
Operating Margin
|
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
North America Personal
Solutions
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Total
operating revenue
|
$ | 39.7 | $ | 38.4 | $ | 1.3 | 3 | % | ||||||||
%
of consolidated revenue
|
9 | % | 9 | % | ||||||||||||
Total
operating income
|
$ | 10.0 | $ | 6.0 | $ | 4.0 | 68 | % | ||||||||
Operating
margin
|
25.2 | % | 15.5 | % |
9.7
|
% pts |
Three Months Ended March
31,
|
||||||||||||||||
Change
|
||||||||||||||||
North America Commercial
Solutions
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Total
operating revenue
|
$ | 18.7 | $ | 15.8 | $ | 2.9 | 18 | % | ||||||||
%
of consolidated revenue
|
4 | % | 3 | % | ||||||||||||
Total
operating income
|
$ | 4.4 | $ | 2.3 | $ | 2.1 | 93 | % | ||||||||
Operating
margin
|
23.5 | % | 14.4 | % | 9.1 | % pts |
Three
Months Ended March 31,
|
||||||||||||||||
Change
|
||||||||||||||||
General
Corporate Expense
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
General
corporate expense
|
$ | 20.4 | $ | 28.8 | $ | (8.4 | ) | -29 | % |
Three
Months Ended March
31,
|
Change
|
|||||||||||||||
2010
vs. 2009
|
||||||||||||||||
Net
cash provided by (used
in):
|
2010
|
2009
|
$
|
%
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Operating
activities
|
$ | 37.7 | $ | 44.5 | $ | (6.8 | ) | -15 | % | |||||||
Investing
activities
|
$ | (56.0 | ) | $ | (14.0 | ) | $ | (42.0 | ) |
nm
|
||||||
Financing
activities
|
$ | (5.5 | ) | $ | (27.7 | ) | $ | 22.2 |
nm
|
Three
Months Ended March 31,
|
Change
|
|||||||||||
Net
cash used in:
|
2010
|
2009
|
2010
vs. 2009
|
|||||||||
(In
millions)
|
||||||||||||
Capital
expenditures
|
$ | 50.0 | $ | 15.0 | $ | 35.0 |
Three
Months Ended March 31,
|
Change
|
|||||||||||
Net
cash provided by (used in):
|
2010
|
2009
|
2010
vs. 2009
|
|||||||||
(In
millions)
|
||||||||||||
Acquisitions,
net of cash acquired
|
$ | (6.0 | ) | $ | - | $ | (6.0 | ) | ||||
Dividend
from unconsolidated affiliates
|
$ | - | $ | 1.0 | $ | (1.0 | ) |
Three
Months Ended March 31,
|
Change
|
|||||||||||
Net
cash provided by (used in):
|
2010
|
2009
|
2010
vs. 2009
|
|||||||||
(In
millions)
|
||||||||||||
Net
short-term borrowings
|
$ | 2.7 | $ | 260.1 | $ | (257.4 | ) | |||||
Net
repayments under long-term revolving credit facilities
|
$ | (4.6 | ) | $ | (270.0 | ) | $ | 265.4 | ||||
Proceeds
from issuance of long-term debt
|
$ | 1.4 | $ | - | $ | 1.4 | ||||||
Payments
on long-term debt
|
$ | (3.1 | ) | $ | (6.4 | ) | $ | 3.3 |
Three
Months Ended March 31,
|
Change
|
|||||||||||
Net
cash provided by (used in):
|
2010
|
2009
|
2010
vs. 2009
|
|||||||||
(In
millions)
|
||||||||||||
Treasury
stock repurchases
|
$ | (9.4 | ) | $ | (9.1 | ) | $ | (0.3 | ) | |||
Dividends
paid to Equifax shareholders
|
$ | (5.0 | ) | $ | (5.0 | ) | $ | - | ||||
Dividends
paid to noncontrolling interests
|
$ | (0.3 | ) | $ | (0.4 | ) | $ | 0.1 | ||||
Proceeds
from exercise of stock options
|
$ | 11.6 | $ | 3.4 | $ | 8.2 | ||||||
Excess
tax benefits from stock-based compensation plans
|
$ | 1.4 | $ | 0.2 | $ | 1.2 |
|
•
|
Under
share repurchase programs authorized by our Board of Directors, we
purchased 0.3 million and 0.4 million common shares on the open
market during the three months ended March 31, 2010 and 2009,
respectively, for $9.4 million and $9.1 million, respectively, at an
average price per common share of $31.43 and $22.87, respectively. At
March 31, 2010, the Company had approximately $112.5 million
remaining for stock repurchases under the existing Board
authorization.
|
|
•
|
Our
dividends per share were $0.04 per share for both periods presented. We
paid cash dividends to Equifax shareholders of $5.0 million for both
periods presented.
|
|
•
|
We
received cash of $11.6 million and $3.4 million during the first
three months of 2010 and 2009, respectively, from the exercise of stock
options.
|
Maximum
Number
|
||||||||||||||||
(or
Approximate
|
||||||||||||||||
Total
Number
|
Dollar
Value)
|
|||||||||||||||
Total
|
Average
|
of
Shares Purchased
|
of
Shares that May
|
|||||||||||||
Number
|
Price
|
as
Part of
|
Yet
Be Purchased
|
|||||||||||||
of
Shares
|
Paid
|
Publicly-Announced
|
Under
the Plans or
|
|||||||||||||
Period
|
Purchased
(1)
|
Per
Share (2)
|
Plans
or Programs
|
Programs
(3)
|
||||||||||||
December
31, 2009
|
$ | 121,976,574 | ||||||||||||||
January
1 - January 31, 2010
|
3,719 | $ | - | - | $ | 121,976,574 | ||||||||||
February
1 - February 28, 2010
|
349,396 | $ | 31.43 | 300,000 | $ | 112,547,574 | ||||||||||
March
1 - March 31, 2010
|
1,329 | $ | - | - | $ | 112,547,574 | ||||||||||
Total
|
354,444 | $ | 31.43 | 300,000 | $ | 112,547,574 |
(1)
|
The
total number of shares purchased includes: (a) shares purchased
pursuant to our publicly-announced share repurchase program, or Program;
and (b) shares surrendered, or deemed surrendered, in satisfaction of
the exercise price and/or to satisfy tax withholding obligations in
connection with the exercise of employee stock options, totaling 3,719
shares for the month of January 2010, 49,396 shares for the month of
February 2010, and 1,329 shares for the month of March
2010.
|
(2)
|
Average
price paid per share for shares purchased as part of our Program (includes
brokerage commissions).
|
(3)
|
At
March 31, 2010, the amount authorized for future share repurchases under
the Program was $112.5 million. The Program does not have a stated
expiration date.
|
Exhibit
No.
|
Description
|
|
31.1
|
Rule 13a-14(a)
Certification of Chief Executive Officer.
|
|
31.2
|
Rule 13a-14(a)
Certification of Chief Financial Officer.
|
|
32.1
|
Section 1350
Certification of Chief Executive Officer.
|
|
32.2
|
|
Section 1350
Certification of Chief Financial
Officer.
|
Equifax Inc.
|
||
(Registrant)
|
||
Date:
April 29, 2010
|
By:
|
/s/ Richard F.
Smith
|
Richard
F. Smith
|
||
Chairman
and Chief Executive Officer
(Principal
Executive Officer)
|
||
Date:
April 29, 2010
|
/s/ Lee
Adrean
|
|
Lee
Adrean
|
||
Corporate
Vice President and
|
||
Chief
Financial Officer
|
||
(Principal
Financial Officer)
|
||
Date:
April 29, 2010
|
/s/ Nuala M.
King
|
|
Nuala
M. King
|
||
Senior
Vice President and Corporate Controller
|
||
(Principal
Accounting Officer)
|
Exhibit
No.
|
Description
|
|
31.1
|
Rule 13a-14(a)
Certification of Chief Executive Officer.
|
|
31.2
|
Rule 13a-14(a)
Certification of Chief Financial Officer.
|
|
32.1
|
Section 1350
Certification of Chief Executive Officer.
|
|
32.2
|
|
Section 1350
Certification of Chief Financial
Officer.
|