As indicated in yesterday’s commentary Equifax continues on its growth path with a 12% revenue growth in Q1.  Of particular interest is the return of growth in its North American Commercial Solutions business which is up 10%.

Additional Highlights:

  • First quarter 2013 net income from continuing operations attributable to Equifax was $82.1 million, a 15 percent increase from the prior year.
  • Operating margin was 26.3 percent for the first quarter of 2013, compared to 25.4 percent in the first quarter of 2012.
  • Equifax recorded a gain of $18.4 million from the sales of our Talent Management Services and Equifax Settlement Services business lines. The gain includes an income tax benefit of $18.1 million. Both of these businesses, as well as the gain on the sales, are reported as discontinued operations.
  • Total debt at March 31, 2013 was $1.62 billion, down $108.4 million from December 31, 2012.100 Equifax Q1 2013

Operational Highlights:

U.S. Consumer Information Solutions (USCIS)

Total revenue was $245.1 million in the first quarter of 2013 compared to $210.3 million in the first quarter of 2012, an increase of 17 percent.

  • Online Consumer Information Solutions revenue was $175.6 million, up 14 percent from a year ago.
  • Mortgage Solutions revenue was $29.6 million, up 33 percent from a year ago.
  • Consumer Financial Marketing Services revenue was $39.9 million, up 17 percent when compared to a year ago.

Operating margin for USCIS was 37.5 percent in the first quarter of 2013 compared to 38.7 percent in the first quarter of 2012. Depreciation and amortization expense as a percent of revenue increased 2.4 percentage points, compared to the first quarter of 2012, primarily due to the acquisition in December 2012 of CSC Credit Services.

International

Total revenue was $123.7 million in the first quarter of 2013, a 2 percent increase from the first quarter of 2012 and a 4 percent increase on a local currency basis.

  • Latin America revenue was $46.5 million, up 4 percent in local currency and flat in U.S. dollars from a year ago.
  • Europe revenue was $44.6 million, up 4 percent in local currency and 3 percent in U.S. dollars from a year ago.
  • Canada Consumer revenue was $32.6 million, up 5 percent in local currency and 4 percent in U.S. dollars from a year ago.

Operating margin for International was 28.1 percent in the first quarter of 2013 compared to 31.8 percent in the first quarter of 2012.

Workforce Solutions

Total revenue was $123.7 million in the first quarter of 2013, a 14 percent increase over the first quarter of 2012.

  • Verification Services revenue was $68.8 million, up 21 percent when compared to a year ago.
  • Employer Services revenue was $54.9 million, up 6 percent when compared to a year ago.

Operating margin for Workforce Solutions was 30.3 percent in the first quarter of 2013 compared to 24.1 percent in the first quarter of 2012.

North America Personal Solutions

Revenue was $51.1 million, a 14 percent increase from the first quarter of 2012. Operating margin was 28.4 percent compared to 25.1 percent in the first quarter of 2012. Operating margin benefitted from lower credit file and monitoring expenses following the acquisition of CSC Credit Services in December 2012.

North America Commercial Solutions

Revenue was $22.9 million, up 10 percent in U.S. dollars and local currency compared to the first quarter of 2012. Operating margin was 21.3 percent compared to 16.8 percent in the first quarter of 2012.

Second Quarter 2013 Outlook

Based on the current level of domestic and international business activity and current foreign exchange rates as well as continued strength in mortgage activity, consolidated revenue for the second quarter of 2013 is expected to be up 12 to 14 percent from the year-ago quarter.  Second quarter 2013 adjusted EPS attributable to Equifax, which excludes the impact of acquisition-related amortization expense, is expected to be between $0.88 and $0.91, up 23 to 27 percent from the year-ago quarter.

Source: Yahoo Finance