Equifax Q1 net income up 10%

Source: Equifax

Equifax (NYSE: EFX) today reported first quarter of 2007 earnings.

Revenue increased to $405.1 million, up 8 percent compared to the first quarter of 2006. Net income rose to $69.0 million, a 10 percent increase from the first quarter of 2006. Diluted earnings per share ("EPS") grew to 54 cents, a 13 percent increase from the first quarter of 2006.

"Equifax achieved outstanding financial performance across all business units this quarter. Our broad-based growth exemplifies our commitment to deliver shareholder value even in a changing economic landscape," said Richard F. Smith, Equifax Chairman and Chief Executive Officer. "Our solid first quarter results lay the foundation for a strong performance in 2007. We also fulfilled an important strategic initiative with our agreement to acquire TALX Corporation, positioning Equifax for long-term sustainable growth in revenue and cash flow."

First Quarter 2007 Highlights
  • Solid double-digit revenue growth in three of four operating segments contributed to an 8 percent increase in revenue in the first quarter of 2007, when compared to the same period in 2006.
  • Operating margin was strong at 28.9 percent compared to 29.2 percent in the first quarter of 2006.
  • Operating income grew to $117.0 million, up 7 percent from the first quarter of 2006. EBITDA, a non-GAAP financial measure, grew to $138.4 million, up 6 percent from the first quarter of 2006. See the reconciliations of non-GAAP financial measures attached to this earnings release for additional information.
  • Total debt decreased $48.0 million to $455.9 million in the first quarter of 2007, a 10 percent decrease compared to fourth quarter of 2006.
  • On February 14, 2007, we announced a definitive agreement to acquire TALX Corporation, a leading provider of payroll-related and human resources business process outsourcing services, for $1.4 billion, including debt that will be assumed. This acquisition is expected to be completed during the second quarter of 2007.


U.S. Consumer Information Solutions

Total revenue was $247.1 million in the first quarter of 2007, a 3 percent increase from the first quarter of 2006. Operating margin for U.S. Consumer Information Solutions was 41.2 percent in the first quarter of 2007 versus 41.5 percent in the first quarter of 2006.
  • Online Consumer Information Solutions revenue was $162.1 million, up 5 percent compared to the first quarter of 2006.
  • Mortgage Reporting Solutions revenue decreased to $17.5 million, down 13 percent compared to the first quarter of 2006.
  • Credit Marketing Services revenue was $40.4 million, up 2 percent compared to the first quarter of 2006.
  • Direct Marketing Services revenue was $27.1 million, up 5 percent compared to the first quarter of 2006.


International

Total revenue was $105.6 million in the first quarter of 2007, a 14 percent increase from the first quarter of 2006. In local currency, revenue was up 9 percent when compared to the same period in the prior year. Operating margin for International was 30.7 percent in the first quarter of 2007, up from 28.9 percent in the first quarter of 2006.
  • Europe revenue was $42.2 million, up 21 percent compared to the first quarter of 2006. In local currency, revenue was up 9 percent when compared to the same period in the prior year.
  • Latin America revenue was $39.6 million, up 13 percent compared to the first quarter of 2006. In local currency, revenue was up 12 percent when compared to the same period in the prior year.
  • Canada Consumer revenue was $23.8 million, up 5 percent compared to the first quarter of 2006. In local currency, revenue was up 6 percent when compared to the same period in the prior year.


North America Personal Solutions

Total revenue rose to $38.0 million, a 24 percent increase from the first quarter of 2006. Operating margin was 16.5 percent, up from 2.9 percent in the first quarter of 2006.

North America Commercial Solutions

Total revenue rose to $14.4 million, a 41 percent increase from the first quarter of 2006. Operating margin was 9.4 percent, down from 12.2 percent in the first quarter of 2006.

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