Equifax’s revenue was $484.1 million for the third quarter of 2008, down 2 percent from the third quarter of 2007, reflecting the challenging economic environment. Foreign currency favorably impacted revenue by 1 percent in the third quarter of 2008 compared to 2 percent in the same period of 2007.  During the third quarter of 2008, Equifax realigned its business to better support its strategic objectives which resulted in $16.8 million of restructuring and asset write-down charges.  Operating income was $107.2 million, a 17 percent decrease from the same period of 2007. On a non-GAAP basis, operating income excluding the impact of restructuring and asset write-down charges (“adjusted operating income”) was $124.0 million, down 4 percent from the third quarter of 2007.  Operating margin was 22.2 percent. On a non-GAAP basis, excluding the impact of restructuring and asset write-down charges, operating margin was 25.6 percent in the third quarter of 2008 compared to 26.2 percent in the same period of 2007 and 25.4 percent in the second quarter of 2008.   

U.S. Consumer Information Solutions (USCIS): Total revenue was $220.6 million in the third quarter of 2008, a 9.5 percent decrease from the third quarter of 2007. Operating margin for USCIS was 38.2 percent in the third quarter of 2008, up slightly from 38.0 percent in the second quarter of 2008. Operating margin in the third quarter of 2007 was 39.8 percent.

International: Total revenue was $132.5 million in the third quarter of 2008, an 8 percent increase from the third quarter of 2007. In local currency, revenue was up 5 percent when compared to the same period in the prior year. Compared to the third quarter of 2007:  

  • Europe revenue was $44.9 million, down 6 percent in U.S. dollars (2 percent in local currency);  
  • Latin America revenue was $59.3 million, up 26 percent in U.S. dollars (16 percent in local currency); and
  • Canada Consumer revenue was $28.3 million, flat in U.S. dollars (flat in local currency).

Operating margin for International was 30.0 percent in the third quarter of 2008 down from 31.2 percent in the third quarter of 2007 and from 30.6 percent in the second quarter of 2008.

TALX:   Total revenue was $73.4 million in the third quarter of 2008, a 4 percent increase from Q3 of 2007. Operating margin was 16.1 percent, up from 14.2 percent in the third quarter of 2007. During the quarter, total records in the employment database grew to 184.0 million, up 16 percent from a year ago.

North America Personal Solutions: Total revenue rose to $40.9 million, a 6 percent increase from the third quarter of 2007. Operating margin was 29.8 percent, up from 26.9 percent in the third quarter of 2007.

North America Commercial Solutions: Total revenue was $16.7 million, flat when compared to the third quarter of 2007. Operating margin was 14.8 percent, down from 19.5 percent in the third quarter of 2007.

Equifax Fourth Quarter 2008 Guidance:

Based on current levels of economic activity, customer demand, traditional seasonal trends, and recent foreign exchange rates, the company expects revenue to be in the range of $453 million to $463 million.

The company also expects adjusted diluted earnings per share, a non-GAAP financial measure which excludes acquisition-related amortization expense, to be in the range of $0.59 to $0.63.

U.S. Consumer Information Solutions (USCIS): Total revenue was $220.6 million in the third quarter of 2008, a 9.5 percent decrease from the third quarter of 2007. Operating margin for USCIS was 38.2 percent in the third quarter of 2008, up slightly from 38.0 percent in the second quarter of 2008. Operating margin in the third quarter of 2007 was 39.8 percent.

International: Total revenue was $132.5 million in the third quarter of 2008, an 8 percent increase from the third quarter of 2007. In local currency, revenue was up 5 percent when compared to the same period in the prior year. Compared to the third quarter of 2007:

  • Europe revenue was $44.9 million, down 6 percent in U.S. dollars (2 percent in local currency);
  • Latin America revenue was $59.3 million, up 26 percent in U.S. dollars (16 percent in local currency); and
  • Canada Consumer revenue was $28.3 million, flat in U.S. dollars (flat in local currency).

Operating margin for International was 30.0 percent in the third quarter of 2008 down from 31.2 percent in the third quarter of 2007 and from 30.6 percent in the second quarter of 2008.

TALX:   Total revenue was $73.4 million in the third quarter of 2008, a 4 percent increase from Q3 of 2007. Operating margin was 16.1 percent, up from 14.2 percent in the third quarter of 2007. During the quarter, total records in the employment database grew to 184.0 million, up 16 percent from a year ago.

North America Personal Solutions: Total revenue rose to $40.9 million, a 6 percent increase from the third quarter of 2007. Operating margin was 29.8 percent, up from 26.9 percent in the third quarter of 2007.

North America Commercial Solutions: Total revenue was $16.7 million, flat when compared to the third quarter of 2007. Operating margin was 14.8 percent, down from 19.5 percent in the third quarter of 2007.

Equifax Fourth Quarter 2008 Guidance:

Based on current levels of economic activity, customer demand, traditional seasonal trends, and recent foreign exchange rates, the company expects revenue to be in the range of $453 million to $463 million.

The company also expects adjusted diluted earnings per share, a non-GAAP financial measure which excludes acquisition-related amortization expense, to be in the range of $0.59 to $0.63.  

Source: Equifax Earnings Release

BIIA Newsletter October 2008 Issue