Equifax Inc. (NYSE: EFX) reported second quarter results on July 23, 2007.  Revenue increased to $454.5 million, up 17 percent compared to the second quarter of 2006.  “In the second quarter we completed, ahead of schedule, the acquisition of TALX, a leading provider of employment and income verification and human resources outsourcing services,” said Richard F. Smith, Equifax Chairman and Chief Executive Officer.  “At the same time, we kept our focus on customers of the traditional Equifax businesses and, excluding the impact of TALX, delivered 8 percent revenue growth, including double-digit growth in our International, North America Personal Solutions and North America Commercial Solutions businesses.”Second Quarter 2007 Highlights included:  Solid double-digit revenue growth in our International, North America Personal Solutions and North America Commercial Solutions operating segments and the acquisition of TALX contributed to a 17 percent increase in revenue in the second quarter of 2007, when compared to the same period in 2006.  Operating margin was 26.4 percent compared to 24.9 percent in the second quarter of 2006.  Operating income grew to $119.8 million, up 24 percent from the second quarter of 2006.  On a non-GAAP basis, excluding the impact of the second quarter 2006 litigation matters mentioned above, operating income grew 8 percent.  Net income rose to $70.1 million, a one percent increase from the second quarter of 2006, which included the favorable net impact of the 2006 litigation-related matters.  On a non-GAAP  basis excluding the impact of these litigation matters, net income increased 9 percent.

  • Total debt increased to $1.2 billion in the second quarter of 2007, from $503.9 million at December 31, 2006.  The increase resulted primarily from the issuance of an aggregate of $550 million of ten- and thirty-year fixed rate senior notes in late June, assumption of $75 million in senior guaranteed notes of TALX and commencement of a commercial paper program on May 22, 2007 to refinance certain other outstanding debt.   Equifax repurchased 4.2 million of our common shares for $179.3 million in the quarter, as part of our previously announced share repurchase programs.  Source: Equifax Press Release

Difficulties in the US Subprime mortgage market poses challenges for consumer credit information companies: 

Equifax reported solid demand for online consumer information was offset by weakness in the mortgage and market services markets.  Online Consumer Information Solutions was US$ 165.4 million up 5% compared to the second quarter of 2006.  Mortgage Reporting Solutions revenue was $19.0 million, down 1 percent compared to the second quarter of 2006.  Credit Marketing Services revenue was $39.6 million, down 3 percent compared to the second quarter of 2006.  Direct Marketing Services revenue was $26.0 million, down 9 percent compared to the second quarter of 2006.  Source: Equifax Press Release 

 BIIA Newsletter July – 2007 Issue