ATLANTA, July 22, 2020
/PRNewswire/ -- Equifax Inc. (NYSE: EFX) today announced
financial results for the quarter ended June 30, 2020.
"Equifax delivered its second consecutive quarter of strong,
double digit revenue growth and margin expansion, driven by our
Workforce Solutions income and employment business which had its
strongest results in over 10 years, even with the challenging
economic impacts of the coronavirus pandemic in the quarter. The
results reflect the strength and resiliency of our business model,
our differentiated data assets, including our unique TWN employment
and income data, and the importance of data and insights to help
customers manage in these unprecedented times," said Mark W. Begor, Equifax Chief Executive Officer.
"Our strong performance follows our momentum in the second half of
2019 and First Quarter and positions us to continue investing in
our three-year over $1.25 billion EFX
2020 cloud technology, data, and security transformation, data and
analytics, and new products to position Equifax for future
growth."
Financial Results Summary
The company reported revenue of $982.8
million in the second quarter of 2020, up 12 percent
compared to the second quarter of 2019 and up 13 percent on a local
currency basis.
Net income attributable to Equifax of $95.9 million was up 44% in the second quarter of
2020 compared to net income attributable to Equifax of $66.8 million in the second quarter of 2019.
Second quarter diluted EPS attributable to Equifax was
$0.78, up compared to $0.55 in the second quarter of 2019.
USIS second quarter results
- Total revenue was up 10 percent at $365.6 million in the second quarter of 2020,
compared to $332.7 million in the
second quarter of 2019. Operating margin for USIS was 30.9 percent
in the second quarter of 2020 compared to 35.4 percent in the
second quarter of 2019. Adjusted EBITDA margin for USIS was 44.1
percent in the second quarter of 2020 compared to 45.6 percent in
the second quarter of 2019.
- Online Information Solutions revenue was $262.9 million, up 7 percent compared to the
second quarter of 2019.
- Mortgage Solutions revenue was $51.2
million, up 44 percent compared to the second quarter of
2019.
- Financial Marketing Services revenue was $51.5 million, up 1 percent compared to the
second quarter of 2019.
Workforce Solutions second quarter results
- Total revenue was $352.9 million
in the second quarter of 2020, a 53 percent increase compared to
the second quarter of 2019. Operating margin for Workforce
Solutions was 49.4 percent in the second quarter of 2020 compared
to 41.6 percent in the second quarter of 2019. Adjusted EBITDA
margin for Workforce Solutions was 56.3 percent in the second
quarter of 2020 compared to 49.3 percent in the second quarter of
2019.
- Verification Services revenue was $251.9
million, up 46 percent compared to the second quarter of
2019.
- Employer Services revenue was $101.0
million, up 75 percent compared to the second quarter of
2019.
International second quarter results
- Total revenue was $180.5 million
in the second quarter of 2020, down 21 percent and down 15 percent
compared to the second quarter of 2019 on a reported and local
currency basis, respectively. Operating margin for International
was negative 3.4 percent in the second quarter of 2020, compared to
9.9 percent in the second quarter of 2019. Adjusted EBITDA margin
for International was 21.7 percent in the second quarter of 2020,
compared to 28.6 percent in the second quarter of 2019.
- Asia Pacific revenue was
$65.2 million, down 14 percent
compared to the second quarter of 2019 and down 9 percent on a
local currency basis.
- Europe revenue was
$48.0 million, down 27 percent
compared to the second quarter of 2019 and down 25 percent on a
local currency basis.
- Latin America revenue was
$34.2 million, down 28 percent
compared to the second quarter of 2019 and down 14 percent on a
local currency basis.
- Canada revenue was
$33.1 million, down 16 percent
compared to the second quarter of 2019 and down 13 percent on a
local currency basis.
Global Consumer Solutions second quarter results
- Total revenue was $83.8 million
in the second quarter of 2020, down 5 percent compared to the
second quarter of 2019 on a reported and local currency basis.
Operating margin was 9.3 percent in the second quarter of 2020
compared to 14.5 percent in the second quarter of 2019. Adjusted
EBITDA margin was 20.8 percent compared to 22.9 percent in the
second quarter of 2019.
Adjusted EPS and Adjusted EBITDA Margin
- Adjusted EPS attributable to Equifax was $1.60 in the second quarter of 2020, up 14
percent compared to the second quarter of 2019. The financial
measure for both 2020 and 2019 excludes costs related to the 2017
cybersecurity incident, acquisition-related amortization expense,
and income tax effects of stock awards recognized upon vesting or
settlement. The financial measure for 2020 also excludes foreign
currency impact of certain intercompany loans, income tax effects
of the Q1 2020 gain on fair market value adjustment of an equity
investment, and the foreign currency impacts of Argentina being a highly inflationary economy.
The financial measure for 2019 excludes an accrual for legal
matters related to the 2017 cybersecurity incident and PayNet
acquisition-related amounts other than acquisition-related
amortization. All adjustments are net of tax, with a reconciling
item with the aggregated tax impact of the adjustments. The
adjustments affect the comparability of the underlying operational
performance and are described more fully in the attached
Q&A.
- Adjusted EBITDA margin was 35.9 percent in the second quarter
of 2020 compared to 33.7 percent in the second quarter of 2019.
This financial measure for both 2020 and 2019 excludes costs
related to the 2017 cybersecurity incident. The financial measure
for 2020 also excludes the foreign currency impact of certain
intercompany loans and the foreign currency impacts of Argentina being a highly inflationary economy.
The financial measure for 2019 excludes an accrual of legal matters
related to the 2017 cybersecurity incident and PayNet
acquisition-related amounts other than acquisition-related
amortization. All adjustments are net of tax, with a reconciling
item with the aggregated tax impact of the adjustments. The
adjustments affect the comparability of the underlying operational
performance and are described more fully in the attached
Q&A.
Liquidity and Capital Resources
At June 30, 2020, the Company had
approximately $1.3 billion in cash
and $1.3 billion available under its
revolving credit facility, which matures in September 2023, and its receivables funding
facility, which matures in December
2022. We amended our credit facility in the second quarter
of 2020 to increase the maximum leverage ratio through 2021 to
provide us with additional financial flexibility.
About Equifax
At Equifax (NYSE: EFX), we believe knowledge drives progress. As
a global data, analytics, and technology company, we play an
essential role in the global economy by helping financial
institutions, companies, employees, and government agencies make
critical decisions with greater confidence. Our unique blend of
differentiated data, analytics, and cloud technology drives
insights to power decisions to move people forward. Headquartered
in Atlanta and supported by more
than 11,000 employees worldwide, Equifax operates or has
investments in 25 countries in North
America, Central and South
America, Europe, and the
Asia Pacific region. For more
information, visit Equifax.com.
Earnings Conference Call and Audio Webcast
In conjunction with this release, Equifax will host a conference
call on July 23, 2020 at 8:30 a.m. (ET) via a live audio webcast. To
access the webcast and related presentation materials, go to the
Investor Relations section of our website at www.equifax.com. The
discussion will be available via replay at the same site shortly
after the conclusion of the webcast. This press release is also
available at that website.
Non-GAAP Financial Measures
This earnings release presents adjusted EPS attributable to
Equifax which is diluted EPS attributable to Equifax adjusted (to
the extent noted above for different periods) for
acquisition-related amortization expense, costs related to the 2017
cybersecurity incident, accrual for legal matters related to the
2017 cybersecurity incident, foreign currency impact of certain
intercompany loans, income tax effects related to the Q1 2020 gain
on fair market value adjustment of equity investment, income tax
effects of stock awards that are recognized upon vesting or
settlement, the foreign exchange impact resulting from accounting
for Argentina as a highly
inflationary economy, PayNet acquisition-related amounts other than
acquisition-related amortization and the income tax impact of these
adjustments. All adjustments are net of tax, with a reconciling
item with the aggregated tax impact of the adjustments. This
earnings release also presents adjusted EBITDA and adjusted EBITDA
margin which is defined as consolidated net income attributable to
Equifax plus net interest expense, income taxes, depreciation and
amortization, and also excludes certain one-time items. These are
important financial measures for Equifax but are not financial
measures as defined by GAAP.
These non-GAAP financial measures should be reviewed in
conjunction with the relevant GAAP financial measures and are not
presented as an alternative measure of net income or EPS as
determined in accordance with GAAP.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures and related notes are
presented in the Q&A. This information can also be found under
"Investor Relations/Financial Information/Non-GAAP Financial
Measures" on our website at www.equifax.com.
Forward-Looking Statements
This release contains forward-looking statements and
forward-looking information. These statements can be identified by
expressions of belief, expectation or intention, as well as
statements that are not historical fact. These statements are based
on certain factors and assumptions including with respect to
foreign exchange rates, expected growth, results of operations,
performance, the outcome of legal proceedings, business prospects
and opportunities and effective tax rates. While the Company
believes these factors and assumptions to be reasonable based on
information currently available, they may prove to be
incorrect.
Several factors could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
including, but not limited to, actions taken by us, including
restructuring or strategic initiatives (including our EFX2020 cloud
technology, data and security transformation program, capital
investments and asset acquisitions or dispositions), as well as
developments beyond our control, including, but not limited to, the
impact of COVID-19 and changes in U.S. and worldwide economic
conditions that materially impact consumer spending, consumer debt
and employment and the demand for Equifax's products and services.
The extent to which the COVID-19 pandemic could negatively impact
our operations will depend on future developments which are highly
uncertain and cannot be predicted with confidence, including the
duration of the outbreak, new information which may emerge
concerning the severity of the COVID-19 pandemic, the actions taken
to control the spread of COVID-19 or treat its impact, and changes
in U.S. and worldwide economic conditions. Further deteriorations
in economic conditions, as a result of COVID-19 or otherwise, could
lead to a further or prolonged decline in demand for our products
and services and negatively impact our business. It may also impact
financial markets and corporate credit markets which could
adversely impact our access to financing, or the terms of any
financing. We cannot at this time predict the extent of the impact
of the COVID-19 pandemic and resulting economic impact, but it
could have a material adverse effect on our business, financial
position, results of operations and cash flows. Other risk factors
include the impact of the 2017 cybersecurity incident on our
business and results of operations; impact of our technology and
security transformation and improvements in our information
technology and data security infrastructure; changes in tax
regulations; adverse or uncertain economic conditions and changes
in credit and financial markets; uncertainties regarding the
ultimate amount and timing of payments for the legal proceedings
and government investigations related to the 2017 cybersecurity
incident; potential adverse developments in new and pending legal
proceedings or government investigations; risks associated with our
ability to comply with business practice commitments and similar
obligations under settlement agreements and consent orders entered
into in connection with the 2017 cybersecurity incident; economic,
political and other risks associated with international sales and
operations; risks relating to unauthorized access to data or
breaches of confidential information due to criminal conduct,
attacks by hackers, employee or insider malfeasance and/or human
error; changes in, and the effects of, laws and regulations and
government policies governing or affecting our business, including,
without limitation, our examination and supervision by the Consumer
Financial Protection Bureau, a federal agency that holds primary
responsibility for the regulation of consumer protection with
respect to financial products and services in the U.S., oversight
by the U.K. Financial Conduct Authority ("FCA") and Information
Commissioner's Office of our debt collections services and core
credit reporting businesses in the U.K., oversight by the Office of
Australian Information Commission, the Australian Competition and
Consumer Commission ("ACCC") and other regulatory entities of our
credit reporting business in Australia and the impact of current privacy
laws and regulations, including the European General Data
Protection Regulation and the California Consumer Privacy Act, or
any future privacy laws and regulations; federal or state responses
to identity theft concerns; our ability to successfully develop and
market new products and services, respond to pricing and other
competitive pressures, complete and integrate acquisitions and
other investments and achieve targeted cost efficiencies; timing
and amount of capital expenditures; changes in capital markets and
corresponding effects on the Company's investments and benefit plan
obligations; foreign currency exchange rates and earnings
repatriation limitations; and the decisions of taxing authorities
which could affect our effective tax rates. A summary of additional
risks and uncertainties can be found in our Annual Report on Form
10-K for the year ended December 31,
2019, including without limitation under the captions "Item
1. Business -- Governmental Regulation" and "-- Forward-Looking
Statements" and "Item 1A. Risk Factors," and in our other filings
with the U.S. Securities and Exchange Commission. Forward-looking
statements are given only as at the date of this release and the
Company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
EQUIFAX
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Three Months Ended
June 30,
|
|
|
2020
|
|
2019
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
Operating
revenue
|
|
$
|
982.8
|
|
|
$
|
880.0
|
|
Operating
expenses:
|
|
|
|
|
Cost of services
(exclusive of depreciation and amortization below)
|
|
409.3
|
|
|
376.9
|
|
Selling, general and
administrative expenses
|
|
309.9
|
|
|
306.8
|
|
Depreciation and
amortization
|
|
96.8
|
|
|
82.5
|
|
Total
operating expenses
|
|
816.0
|
|
|
766.2
|
|
Operating
income
|
|
166.8
|
|
|
113.8
|
|
Interest
expense
|
|
(36.6)
|
|
|
(27.6)
|
|
Other (loss) income,
net
|
|
(7.5)
|
|
|
2.8
|
|
Consolidated income
before income taxes
|
|
122.7
|
|
|
89.0
|
|
Provision for income
taxes
|
|
(26.6)
|
|
|
(20.7)
|
|
Consolidated net
income
|
|
96.1
|
|
|
68.3
|
|
Less: Net income
attributable to noncontrolling interests including redeemable
noncontrolling interests
|
|
(0.2)
|
|
|
(1.5)
|
|
Net income
attributable to Equifax
|
|
$
|
95.9
|
|
|
$
|
66.8
|
|
Basic earnings per
common share:
|
|
|
|
|
Net income
attributable to Equifax
|
|
$
|
0.79
|
|
|
$
|
0.55
|
|
Weighted-average
shares used in computing basic earnings per share
|
|
121.4
|
|
|
120.8
|
|
Diluted earnings per
common share:
|
|
|
|
|
Net income
attributable to Equifax
|
|
$
|
0.78
|
|
|
$
|
0.55
|
|
Weighted-average
shares used in computing diluted earnings per share
|
|
122.7
|
|
|
122.0
|
|
Dividends per common
share
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
EQUIFAX
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
(In millions,
except par values)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,347.4
|
|
|
$
|
401.3
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $16.9 and
$11.2 at June 30,
2020 and December 31, 2019, respectively
|
|
592.5
|
|
|
532.1
|
|
Prepaid
expenses
|
|
121.1
|
|
|
88.1
|
|
Other current
assets
|
|
43.9
|
|
|
187.9
|
|
Total
current assets
|
|
2,104.9
|
|
|
1,209.4
|
|
Property and
equipment:
|
|
|
|
|
Capitalized
internal-use software and system costs
|
|
1,147.0
|
|
|
979.4
|
|
Data processing
equipment and furniture
|
|
328.2
|
|
|
325.1
|
|
Land, buildings and
improvements
|
|
235.0
|
|
|
236.3
|
|
Total property and
equipment
|
|
1,710.2
|
|
|
1,540.8
|
|
Less accumulated
depreciation and amortization
|
|
(693.0)
|
|
|
(593.2)
|
|
Total
property and equipment, net
|
|
1,017.2
|
|
|
947.6
|
|
Goodwill
|
|
4,322.9
|
|
|
4,308.3
|
|
Indefinite-lived
intangible assets
|
|
94.8
|
|
|
94.9
|
|
Purchased intangible
assets, net
|
|
1,012.7
|
|
|
1,044.6
|
|
Other assets,
net
|
|
280.3
|
|
|
304.2
|
|
Total
assets
|
|
$
|
8,832.8
|
|
|
$
|
7,909.0
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term debt and
current maturities of long-term debt
|
|
$
|
503.7
|
|
|
$
|
3.1
|
|
Accounts
payable
|
|
149.4
|
|
|
148.3
|
|
Accrued
expenses
|
|
178.0
|
|
|
163.5
|
|
Accrued salaries and
bonuses
|
|
156.9
|
|
|
156.1
|
|
Deferred
revenue
|
|
98.6
|
|
|
104.0
|
|
Other current
liabilities
|
|
569.8
|
|
|
784.1
|
|
Total current
liabilities
|
|
1,656.4
|
|
|
1,359.1
|
|
Long-term
debt
|
|
3,872.1
|
|
|
3,379.5
|
|
Deferred income tax
liabilities, net
|
|
287.9
|
|
|
248.0
|
|
Long-term pension and
other postretirement benefit liabilities
|
|
110.6
|
|
|
118.9
|
|
Other long-term
liabilities
|
|
171.5
|
|
|
180.6
|
|
Total
liabilities
|
|
6,098.5
|
|
|
5,286.1
|
|
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 June 30, 2020 and December 31, 2019;
Outstanding shares -
121.5 and 121.2 at June 30, 2020 and December 31, 2019,
respectively
|
|
236.6
|
|
|
236.6
|
|
Paid-in
capital
|
|
1,447.8
|
|
|
1,405.1
|
|
Retained
earnings
|
|
4,248.0
|
|
|
4,131.8
|
|
Accumulated other
comprehensive loss
|
|
(681.7)
|
|
|
(631.6)
|
|
Treasury stock, at
cost, 67.2 shares and 67.5 shares at June 30, 2020 and December 31,
2019,
respectively
|
|
(2,550.7)
|
|
|
(2,557.4)
|
|
Stock held by employee
benefit trusts, at cost, 0.6 shares at June 30, 2020 and December
31,
2019
|
|
(5.9)
|
|
|
(5.9)
|
|
Total Equifax
shareholders' equity
|
|
2,694.1
|
|
|
2,578.6
|
|
Noncontrolling
interests including redeemable noncontrolling interests
|
|
40.2
|
|
|
44.3
|
|
Total
equity
|
|
2,734.3
|
|
|
2,622.9
|
|
Total
liabilities and equity
|
|
$
|
8,832.8
|
|
|
$
|
7,909.0
|
|
EQUIFAX
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
(In
millions)
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
|
Consolidated net
income (loss)
|
|
$
|
210.6
|
|
|
$
|
(486.1)
|
|
Adjustments to
reconcile consolidated net income (loss) to net cash provided by
operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
192.1
|
|
|
163.1
|
|
Stock-based
compensation expense
|
|
31.7
|
|
|
29.8
|
|
Deferred income
taxes
|
|
29.5
|
|
|
(84.6)
|
|
Gain on fair market
value adjustment of equity investment
|
|
(32.9)
|
|
|
—
|
|
Changes in assets and
liabilities, excluding effects of acquisitions:
|
|
|
|
|
Accounts receivable,
net
|
|
(65.3)
|
|
|
(30.2)
|
|
Other assets, current
and long-term
|
|
29.3
|
|
|
34.8
|
|
Current and long term
liabilities, excluding debt
|
|
(113.0)
|
|
|
621.2
|
|
Cash provided by
operating activities
|
|
282.0
|
|
|
248.0
|
|
Investing
activities:
|
|
|
|
|
Capital
expenditures
|
|
(192.8)
|
|
|
(208.5)
|
|
Acquisitions, net of
cash acquired
|
|
(48.1)
|
|
|
(234.8)
|
|
Investment in
unconsolidated affiliates, net
|
|
(10.0)
|
|
|
(25.0)
|
|
Cash used in
investing activities
|
|
(250.9)
|
|
|
(468.3)
|
|
Financing
activities:
|
|
|
|
|
Net short-term
borrowings
|
|
0.8
|
|
|
27.2
|
|
Payments on long-term
debt
|
|
(125.0)
|
|
|
(50.0)
|
|
Borrowings on
long-term debt
|
|
1,123.3
|
|
|
250.0
|
|
Dividends paid to
Equifax shareholders
|
|
(94.6)
|
|
|
(94.2)
|
|
Dividends paid to
noncontrolling interests
|
|
(1.6)
|
|
|
(4.7)
|
|
Proceeds from
exercise of stock options
|
|
22.9
|
|
|
6.1
|
|
Payment of taxes
related to settlement of equity awards
|
|
—
|
|
|
(4.6)
|
|
Debt issuance
costs
|
|
(9.8)
|
|
|
—
|
|
Other
|
|
0.3
|
|
|
—
|
|
Cash provided by
financing activities
|
|
916.3
|
|
|
129.8
|
|
Effect of foreign
currency exchange rates on cash and cash equivalents
|
|
(1.3)
|
|
|
2.7
|
|
Increase (decrease)
in cash and cash equivalents
|
|
946.1
|
|
|
(87.8)
|
|
Cash and cash
equivalents, beginning of period
|
|
401.3
|
|
|
223.6
|
|
Cash and cash
equivalents, end of period
|
|
$
|
1,347.4
|
|
|
$
|
135.8
|
|
Common Questions & Answers (Unaudited)
(Dollars in
millions)
1. Can you provide a further
analysis of operating revenue by operating segment?
Operating revenue consists of the following components:
(In
millions)
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
Currency
|
Operating
revenue:
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
|
%
Change*
|
Online Information
Solutions
|
|
$
|
262.9
|
|
|
$
|
246.1
|
|
|
$
|
16.8
|
|
|
7
|
%
|
|
|
Mortgage
Solutions
|
|
51.2
|
|
|
35.6
|
|
|
15.6
|
|
|
44
|
%
|
|
|
Financial Marketing
Services
|
|
51.5
|
|
|
51.0
|
|
|
0.5
|
|
|
1
|
%
|
|
|
Total U.S. Information
Solutions
|
|
365.6
|
|
|
332.7
|
|
|
32.9
|
|
|
10
|
%
|
|
|
Verification
Services
|
|
251.9
|
|
|
172.3
|
|
|
79.6
|
|
|
46
|
%
|
|
|
Employer
Services
|
|
101.0
|
|
|
57.8
|
|
|
43.2
|
|
|
75
|
%
|
|
|
Total Workforce
Solutions
|
|
$
|
352.9
|
|
|
$
|
230.1
|
|
|
$
|
122.8
|
|
|
53
|
%
|
|
|
Asia
Pacific
|
|
65.2
|
|
|
75.9
|
|
|
(10.7)
|
|
|
(14)
|
%
|
|
(9)
|
%
|
Europe
|
|
48.0
|
|
|
66.0
|
|
|
(18.0)
|
|
|
(27)
|
%
|
|
(25)
|
%
|
Latin
America
|
|
34.2
|
|
|
47.6
|
|
|
(13.4)
|
|
|
(28)
|
%
|
|
(14)
|
%
|
Canada
|
|
33.1
|
|
|
39.5
|
|
|
(6.4)
|
|
|
(16)
|
%
|
|
(13)
|
%
|
Total
International
|
|
180.5
|
|
|
229.0
|
|
|
(48.5)
|
|
|
(21)
|
%
|
|
(15)
|
%
|
Global Consumer
Solutions
|
|
83.8
|
|
|
88.2
|
|
|
(4.4)
|
|
|
(5)
|
%
|
|
(5)
|
%
|
Total operating
revenue
|
|
$
|
982.8
|
|
|
$
|
880.0
|
|
|
$
|
102.8
|
|
|
12
|
%
|
|
13
|
%
|
|
*Reflects percentage
change in revenue conforming 2020 results using 2019 exchange
rates.
|
2. What is the breakdown of the costs
related to the September 2017
cybersecurity incident?
Costs related to the 2017 cybersecurity incident are defined as
incremental costs to transform our information technology
infrastructure and data security; legal fees and professional
services costs to investigate the 2017 cybersecurity incident and
respond to legal, government and regulatory claims; as well as
costs to provide the free product and related support to the
consumer. Costs related to the 2017 cybersecurity incident do not
include the accrual for losses associated with certain legal
proceedings and government investigations related to the 2017
cybersecurity incident, as further described in the Notes to the
reconciliations of this release.
We recorded $87.3 million
($63.4 million, net of tax) and
$92.8 million ($69.6 million, net of tax) for the second quarter
of 2020 and 2019, respectively, for costs related to the 2017
cybersecurity incident and the accrual for legal matters related to
the 2017 cybersecurity incident. The components of the costs are as
follows:
(In
millions)
|
|
Three Months
Ended
June 30, 2020
|
|
Three Months
Ended
June 30, 2019
|
Accrual for legal
matters related to the 2017 cybersecurity incident
|
|
$
|
—
|
|
|
$
|
11.3
|
|
2017 cybersecurity
incident related costs:
|
|
|
|
|
Technology and data
security
|
|
85.2
|
|
|
68.9
|
|
Legal and
investigative fees
|
|
2.1
|
|
|
12.4
|
|
Product
liability
|
|
—
|
|
|
0.2
|
|
Total
|
|
$
|
87.3
|
|
|
$
|
92.8
|
|
The $85.2 million of technology
and data security costs include incremental costs to transform our
technology infrastructure and improve application, network, and
data security. These include, but are not limited to, costs for
people, professional and contracted services, technical services
and products, and other costs added either directly or indirectly
to manage, execute, and support the implementation of these plans.
The $2.1 million of legal and investigative fees include
legal fees and professional services costs to investigate the 2017
cybersecurity incident and respond to legal, government, and
regulatory investigations and claims related to the 2017
cybersecurity incident.
Reconciliations of Non-GAAP Financial Measures to the
Comparable GAAP Financial Measures (Unaudited)
(Dollars in
millions, except per share amounts)
A. Reconciliation of net income
attributable to Equifax to diluted EPS attributable to Equifax,
defined as net income adjusted for acquisition-related amortization
expense, costs related to the 2017 cybersecurity incident, accrual
for legal matters related to the 2017 cybersecurity incident,
foreign currency impact of certain intercompany loans, income tax
effects of Q1 2020 gain on fair market value adjustment of equity
investment, income tax effect of stock awards recognized upon
vesting or settlement, Argentina
highly inflationary foreign currency adjustment, PayNet
acquisition-related amounts other than acquisition-related
amortization and income tax adjustments:
|
|
Three Months Ended
June 30,
|
|
|
|
|
(In millions,
except per share amounts)
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
Net income (loss)
attributable to Equifax
|
|
$
|
95.9
|
|
|
$
|
66.8
|
|
|
$
|
29.1
|
|
|
44
|
%
|
Acquisition-related
amortization expense of certain acquired intangibles
(1)
|
|
34.8
|
|
|
35.7
|
|
|
(0.9)
|
|
|
(3)
|
%
|
2017 cybersecurity
incident related costs (2)
|
|
87.3
|
|
|
81.5
|
|
|
5.8
|
|
|
7
|
%
|
Accrual for legal
matters related to the 2017 cybersecurity incident
(3)
|
|
—
|
|
|
11.3
|
|
|
(11.3)
|
|
|
nm
|
|
Foreign currency
impact of certain intercompany loans (4)
|
|
10.3
|
|
|
—
|
|
|
10.3
|
|
|
nm
|
|
Income tax effects of
Q1 2020 gain on fair market value adjustment of equity
investment (5)
|
|
(2.4)
|
|
|
—
|
|
|
(2.4)
|
|
|
nm
|
|
Income tax effects of
stock awards that are recognized upon vesting or settlement
(6)
|
|
(0.9)
|
|
|
(0.8)
|
|
|
(0.1)
|
|
|
13
|
%
|
Argentina highly
inflationary foreign currency adjustment (7)
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
nm
|
|
PayNet
acquisition-related amounts other than acquisition-related
amortization (8)
|
|
—
|
|
|
6.3
|
|
|
(6.3)
|
|
|
nm
|
|
Tax impact of
adjustments (9)
|
|
(29.0)
|
|
|
(30.0)
|
|
|
1.0
|
|
|
(3)
|
%
|
Net income
attributable to Equifax, adjusted for items listed above
|
|
$
|
196.2
|
|
|
$
|
170.8
|
|
|
$
|
25.4
|
|
|
15
|
%
|
Diluted EPS
attributable to Equifax, adjusted for the items listed
above
|
|
$
|
1.60
|
|
|
$
|
1.40
|
|
|
$
|
0.20
|
|
|
14
|
%
|
Weighted-average
shares used in computing diluted EPS
|
|
122.7
|
|
|
122.0
|
|
|
|
|
|
|
|
|
nm - not
meaningful
|
|
|
(1)
|
During the second
quarter of 2020, we recorded acquisition-related amortization
expense of certain acquired intangibles of $34.8 million ($29.7
million, net of tax). We calculate this financial measure by
excluding the impact of acquisition-related amortization expense
and including a benefit to reflect the significant cash income tax
savings resulting from the income tax deductibility of amortization
for certain acquired intangibles. The $5.1 million of tax is
comprised of $9.1 million of tax expense net of $4.0 million of a
cash income tax benefit. During the second quarter of 2019, we
recorded acquisition-related amortization expense of certain
acquired intangibles of $35.7 million ($30.4 million, net of tax).
The $5.3 million of tax is comprised of $9.3 million of tax expense
net of $4.0 million of a cash income tax benefit. See the Notes to
this reconciliation for additional detail.
|
|
|
(2)
|
During the second
quarter of 2020, we recorded pre-tax expenses related to the 2017
cybersecurity incident of $87.3 million ($63.4 million, net of
tax). $87.6 million of cybersecurity incident related costs were in
operating income, with a $0.3 million reduction to depreciation and
amortization expense. During the second quarter of 2019, we
recorded $81.5 million ($59.7 million, net of tax) for costs
related to the 2017 cybersecurity incident. See the Notes to this
reconciliation for additional detail.
|
|
|
(3)
|
During the second
quarter of 2019, we recorded a $11.3 million ($9.9 million,
net of tax) accrual for losses associated with certain legal
proceedings and investigations related to the 2017 cybersecurity
incident, exclusive of our legal professional services expenses.
See the Notes to this reconciliation for additional
detail.
|
|
|
(4)
|
During the second
quarter of 2020, we recorded foreign currency impact of certain
intercompany loans of $10.3 million. The impact was recorded to the
Other Income, net line item within the Consolidated Statements of
Income. See the Notes to this reconciliation for additional
detail.
|
|
|
(5)
|
During the second
quarter of 2020, we recorded income tax effects of the Q1 2020 gain
on fair market value adjustment of equity investment of $2.4
million. See the Notes to this reconciliation for additional
detail.
|
|
|
(6)
|
During the second
quarter of 2020, we recorded a tax benefit of $0.9 million related
to the tax effects of deductions for stock compensation in excess
of amounts recorded for compensation costs. During the second
quarter of 2019, we recorded a tax benefit of $0.8 million related
to the tax effects of deductions for stock compensation expense in
excess of amounts recorded for compensation costs. See the Notes to
this reconciliation for additional detail.
|
|
|
(7)
|
Argentina has
experienced multiple periods of increasing inflation rates,
devaluation of the peso, and increasing borrowing rates. As such,
Argentina has been deemed a highly inflationary economy by
accounting policymakers. During the second quarter of 2020, we
recorded a foreign currency loss of $0.2 million related to the
impact of remeasuring the peso denominated monetary assets and
liabilities as a result of Argentina being a highly inflationary
economy. See the Notes to this reconciliation for additional
detail.
|
|
|
(8)
|
During the second
quarter of 2019, we recorded $6.3 million ($4.8 million, net
of tax) for PayNet acquisition related amounts other than
acquisition-related amortization which was primarily related to
transaction costs resulting from the acquisition and was recorded
in operating income. See the Notes to this reconciliation for
additional detail.
|
|
|
(9)
|
During the second
quarter of 2020, we recorded the tax impact of adjustments of $29.0
million comprised of (i) acquisition-related amortization expense
of certain acquired intangibles of $5.1 million ($9.1 million of
tax expense net of $4.0 million of cash income tax benefit), and
(ii) a tax adjustment of $23.9 million related to expenses for the
2017 cybersecurity incident.
|
|
|
|
During the second
quarter of 2019, we recorded the tax impact of adjustments of $30.0
million comprised of (i) acquisition-related amortization expense
of certain acquired intangibles of $5.3 million ($9.3 million of
tax expense net of $4.0 million of cash income tax benefit), (ii) a
tax adjustment of $1.4 million related to a legal matter, (iii) a
tax adjustment of $21.8 million related to expenses for the 2017
cybersecurity incident, and (iv) a tax adjustment of $1.5 million
for PayNet acquisition-related amounts other than
acquisition-related amortization.
|
B. Reconciliation of net income
attributable to Equifax to adjusted EBITDA, defined as net income
excluding income taxes, interest expense, net, depreciation and
amortization expense, costs related to the 2017 cybersecurity
incident, accrual for legal matters related to the 2017
cybersecurity incident, foreign currency impact of certain
intercompany loans, Argentina
highly inflationary foreign currency adjustment, PayNet
acquisition-related amounts other than acquisition-related
amortization and presentation of adjusted EBITDA
margin:
|
|
Three Months Ended
June 30,
|
|
|
|
|
(in
millions)
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
Revenue
|
|
$
|
982.8
|
|
|
$
|
880.0
|
|
|
$
|
102.8
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Equifax
|
|
$
|
95.9
|
|
|
$
|
66.8
|
|
|
$
|
29.1
|
|
|
44
|
%
|
Income
taxes
|
|
26.6
|
|
|
20.7
|
|
|
5.9
|
|
|
29
|
%
|
Interest expense,
net*
|
|
35.8
|
|
|
27.1
|
|
|
8.7
|
|
|
32
|
%
|
Depreciation and
amortization
|
|
96.8
|
|
|
82.5
|
|
|
14.3
|
|
|
17
|
%
|
2017 cybersecurity
incident related costs (1)
|
|
87.6
|
|
|
81.5
|
|
|
6.1
|
|
|
7
|
%
|
Accrual for legal
matters related to the 2017 cybersecurity
incident (2)
|
|
—
|
|
|
11.3
|
|
|
(11.3)
|
|
|
nm
|
|
Foreign currency
impact of certain intercompany loans (3)
|
|
10.3
|
|
|
—
|
|
|
10.3
|
|
|
nm
|
|
Argentina highly
inflationary foreign currency adjustment (4)
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
nm
|
|
PayNet
acquisition-related amounts other than acquisition-
related amortization (5)
|
|
—
|
|
|
6.3
|
|
|
(6.3)
|
|
|
nm
|
|
Adjusted EBITDA,
excluding the items listed above
|
|
$
|
353.2
|
|
|
$
|
296.2
|
|
|
$
|
57.0
|
|
|
19
|
%
|
Adjusted EBITDA
margin
|
|
35.9
|
%
|
|
33.7
|
%
|
|
|
|
|
|
|
|
nm - not
meaningful
|
|
*Excludes interest
income of $0.8 million in 2020 and $0.5 million in 2019.
|
|
|
(1)
|
During the second
quarter of 2020, we recorded pre-tax expenses related to the 2017
cybersecurity incident of $87.3 million ($63.4 million, net of
tax). $87.6 million of cybersecurity incident related costs were in
operating income, with a $0.3 million reduction to depreciation and
amortization expense. During the second quarter of 2019, we
recorded $81.5 million ($59.7 million, net of tax) for costs
related to the 2017 cybersecurity incident. See the Notes to this
reconciliation for additional detail.
|
|
|
(2)
|
During the second
quarter of 2019, we recorded a $11.3 million ($9.9 million,
net of tax) accrual for losses associated with certain legal
proceedings and investigations related to the 2017 cybersecurity
incident, exclusive of our legal professional services expenses.
See the Notes to this reconciliation for additional
detail.
|
|
|
(3)
|
During the second
quarter of 2020, we recorded foreign currency impact of certain
intercompany loans of $10.3 million. The impact was recorded to the
Other Income, net line item within the Consolidated Statements of
Income. See the Notes to this reconciliation for additional
detail.
|
|
|
(4)
|
Argentina has
experienced multiple periods of increasing inflation rates,
devaluation of the peso, and increasing borrowing rates. As such,
Argentina has been deemed a highly inflationary economy by
accounting policymakers. During the second quarter of 2020, we
recorded a foreign currency loss of $0.2 million related to the
impact of remeasuring the peso denominated monetary assets and
liabilities as a result of Argentina being a highly inflationary
economy. See the Notes to this reconciliation for additional
detail.
|
|
|
(5)
|
During the second
quarter of 2019, we recorded $6.3 million ($4.8 million, net
of tax) for PayNet acquisition related amounts other than
acquisition-related amortization which was primarily related to
transaction costs resulting from the acquisition and was recorded
in operating income. See the Notes to this reconciliation for
additional detail.
|
C. Reconciliation of operating income by
segment to Adjusted EBITDA, excluding depreciation and amortization
expense, other income, net, noncontrolling interest, costs related
to the 2017 cybersecurity incident, accrual for legal matters
related to the 2017 cybersecurity incident, foreign currency impact
of certain intercompany loans, Argentina highly inflationary foreign currency
adjustment, PayNet acquisition-related amounts other than
acquisition-related amortization and presentation of adjusted
EBITDA margin for each of the segments:
(In
millions)
|
|
Three Months Ended
June 30, 2020
|
|
|
U.S.
Information
Solutions
|
|
Workforce
Solutions
|
|
International
|
|
Global
Consumer
Solutions
|
|
General
Corporate
Expense
|
|
Total
|
|
|
|
|
|
|
Revenue
|
|
$
|
365.6
|
|
|
$
|
352.9
|
|
|
$
|
180.5
|
|
|
$
|
83.8
|
|
|
—
|
|
|
$
|
982.8
|
|
Operating income
(loss)
|
|
113.1
|
|
|
174.2
|
|
|
(6.2)
|
|
|
7.8
|
|
|
(122.1)
|
|
|
166.8
|
|
Depreciation and
Amortization
|
|
28.9
|
|
|
17.7
|
|
|
31.7
|
|
|
4.2
|
|
|
14.3
|
|
|
96.8
|
|
Other income,
net*
|
|
0.6
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
|
(13.0)
|
|
|
(8.3)
|
|
Noncontrolling
interest
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
Adjustments
(1)
|
|
18.6
|
|
|
7.0
|
|
|
9.8
|
|
|
5.4
|
|
|
57.3
|
|
|
98.1
|
|
Adjusted
EBITDA
|
|
$
|
161.2
|
|
|
$
|
198.9
|
|
|
$
|
39.2
|
|
|
$
|
17.4
|
|
|
$
|
(63.5)
|
|
|
$
|
353.2
|
|
Operating
margin
|
|
30.9
|
%
|
|
49.4
|
%
|
|
(3.4)
|
%
|
|
9.3
|
%
|
|
nm
|
|
|
17.0
|
%
|
Adjusted EBITDA
margin
|
|
44.1
|
%
|
|
56.3
|
%
|
|
21.7
|
%
|
|
20.8
|
%
|
|
nm
|
|
|
35.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm - not
meaningful
|
*Excludes interest
income of $0.2 million in International and $0.6 million in General
Corporate Expense.
|
|
|
(In
millions)
|
|
Three Months Ended
June 30, 2019
|
|
|
U.S.
Information
Solutions
|
|
Workforce
Solutions
|
|
International
|
|
Global
Consumer
Solutions
|
|
General
Corporate
Expense
|
|
Total
|
|
|
|
|
|
|
Revenue
|
|
$
|
332.7
|
|
|
$
|
230.1
|
|
|
$
|
229.0
|
|
|
$
|
88.2
|
|
|
—
|
|
|
$
|
880.0
|
|
Operating
income
|
|
117.9
|
|
|
95.6
|
|
|
22.7
|
|
|
12.8
|
|
|
(135.2)
|
|
|
113.8
|
|
Depreciation and
Amortization
|
|
20.5
|
|
|
13.7
|
|
|
29.3
|
|
|
3.6
|
|
|
15.4
|
|
|
82.5
|
|
Other
income/(expense), net*
|
|
0.8
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
|
(2.3)
|
|
|
2.3
|
|
Noncontrolling
interest
|
|
—
|
|
|
—
|
|
|
(1.5)
|
|
|
—
|
|
|
—
|
|
|
(1.5)
|
|
Adjustments
(1)
|
|
12.6
|
|
|
4.0
|
|
|
11.3
|
|
|
3.7
|
|
|
67.5
|
|
|
99.1
|
|
Adjusted
EBITDA
|
|
$
|
151.8
|
|
|
$
|
113.3
|
|
|
$
|
65.6
|
|
|
$
|
20.1
|
|
|
$
|
(54.6)
|
|
|
$
|
296.2
|
|
Operating
margin
|
|
35.4
|
%
|
|
41.6
|
%
|
|
9.9
|
%
|
|
14.5
|
%
|
|
nm
|
|
|
12.9
|
%
|
Adjusted EBITDA
margin
|
|
45.6
|
%
|
|
49.3
|
%
|
|
28.6
|
%
|
|
22.9
|
%
|
|
nm
|
|
|
33.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm - not
meaningful
|
*Excludes interest
income of $0.4 million in International and $0.1 million in General
Corporate Expense.
|
|
(1)
|
During the second
quarter of 2020, we recorded pre-tax expenses, excluding
depreciation and amortization, related to the 2017 cybersecurity
incident of $87.6 million, $10.3 million foreign currency impact of
certain intercompany loans, and a foreign currency loss of $0.2
million related to the impact of remeasuring the peso denominated
monetary assets and liabilities as a result of Argentina being a
highly inflationary economy.
|
|
|
|
During the second
quarter of 2019, we recorded pre-tax expenses related to the 2017
cybersecurity incident of $81.5 million, $11.3 million for an
accrual for losses associated with certain legal proceedings and
investigations related to the 2017 cybersecurity incident,
exclusive of our legal professional services expenses, and $6.3
million for integration costs for acquisitions.
|
Notes to Reconciliations of Non-GAAP Financial Measures to
the Comparable GAAP Financial Measures
Diluted EPS attributable to Equifax is adjusted for the
following items:
Acquisition-related amortization expense - We calculate
this financial measure by excluding the impact of
acquisition-related amortization expense and including a benefit to
reflect the material cash income tax savings resulting from the
income tax deductibility of amortization for certain acquired
intangibles. These financial measures are not prepared in
conformity with GAAP. Management believes excluding the impact of
amortization expense is useful because excluding
acquisition-related amortization, and other items that are not
comparable allows investors to evaluate our performance for
different periods on a more comparable basis. Certain acquired
intangibles result in material cash income tax savings which are
not reflected in earnings. Management believes that including a
benefit to reflect the cash income tax savings is useful as it
allows investors to better value Equifax. Management makes these
adjustments to earnings when measuring profitability, evaluating
performance trends, setting performance objectives and calculating
our return on invested capital.
Costs related to the 2017 cybersecurity incident -
We recorded $87.3 million
($63.4 million, net of tax) and
$81.5 million ($59.7 million, net of tax) during the second
quarter of 2020 and 2019, respectively, associated with the costs
to investigate the 2017 cybersecurity incident, legal fees to
respond to subsequent litigation and government investigations,
costs to deliver the free product offering made to all U.S.
consumers and incremental costs to transform our information
technology, data security, and infrastructure. Management believes
excluding these charges is useful as it allows investors to
evaluate our performance for different periods on a more comparable
basis. Management makes these adjustments to net income when
measuring profitability, evaluating performance trends, setting
performance objectives and calculating our return on invested
capital. This is consistent with how management reviews and
assesses Equifax's historical performance and is useful when
planning, forecasting and analyzing future periods. Costs related
to the 2017 cybersecurity incident do not include losses accrued
for certain legal proceedings and government investigations related
to the 2017 cybersecurity incident.
Accrual for legal matters related to the 2017 cybersecurity
incident - During the second quarter of 2019, we recorded a
$11.3 million ($9.9 million, net of tax) accrual for losses
associated with certain legal proceedings and investigations
related to the 2017 cybersecurity incident, exclusive of our legal
and professional services expenses. Management believes excluding
this charge from certain financial results provides meaningful
supplemental information regarding our financial results for the
three months ended June 30, 2019, since a charge of such an
amount is not comparable among the periods. This is consistent with
how our management reviews and assesses Equifax's historical
performance and is useful when planning, forecasting and analyzing
future periods.
Foreign currency impact of certain intercompany loans
- During the second quarter of 2020, we recorded a
$10.3 million loss related to foreign
currency impact of certain intercompany loans. Management believes
excluding this charge is useful as it allows investors to evaluate
our performance for different periods on a more comparable basis.
This is consistent with how management reviews and assesses
Equifax's historical performance and is useful when planning,
forecasting and analyzing future periods.
Income tax effects of Q1 2020 gain on fair market value
adjustment of equity investment - During the first quarter
of 2020, we recorded a gain related to adjusting our equity method
investment in India, in
conjunction with the purchase of the remaining interest of our
joint venture. Prior to the purchase of the remaining interest,
Equifax did not have control over the joint venture. As a result of
the transaction, Equifax recognized a gain related to the
remeasurement of the preexisting equity interest in the
India joint venture at the
acquisition-date fair value of the business combination. Additional
income tax effects related to this transaction were recorded in the
second quarter of 2020. Management believes excluding this gain and
related income tax effects from certain financial results provides
meaningful supplemental information regarding our financial results
for the three months ended June 30, 2020, since the
non-operating gain is not comparable among the periods. This is
consistent with how our management reviews and assesses Equifax's
historical performance and is useful when planning, forecasting and
analyzing future periods.
Income tax effects of stock awards that are recognized upon
vesting or settlement - During the second quarter of 2020,
we recorded a tax benefit of $0.9
million related to the tax effects of deductions for stock
compensation in excess of amounts recorded for compensation costs.
During the second quarter of 2019, we recorded a tax benefit of
$0.8 million related to the tax
effects of deductions for stock compensation expense in excess of
amounts recorded for compensation costs. Management believes
excluding this tax effect from financial results provides
meaningful supplemental information regarding our financial results
for the three months ended June 30, 2020 because this amount
is non-operating and relates to income tax benefits or deficiencies
for stock awards recognized when tax amounts differ from recognized
stock compensation cost. This is consistent with how management
reviews and assesses Equifax's historical performance and is useful
when planning, forecasting and analyzing future periods.
Argentina highly
inflationary foreign currency adjustment - Argentina has
experienced multiple periods of increasing inflation rates,
devaluation of the peso, and increasing borrowing rates. As such,
Argentina has been deemed a highly
inflationary economy by accounting policymakers. We recorded
foreign currency losses of $0.2
million during the second quarter of 2020 as a result of
remeasuring the peso denominated monetary assets and liabilities
due to Argentina being highly
inflationary. Management believes excluding this charge is useful
as it allows investors to evaluate our performance for different
periods on a more comparable basis. This is consistent with how
management reviews and assesses Equifax's historical performance
and is useful when planning, forecasting and analyzing future
periods.
PayNet acquisition related amounts for transaction expenses
incurred as a direct result of the acquisition - During
the second quarter of 2019, we recorded $6.3 million
($4.8 million, net of tax) for PayNet
acquisition related amounts other than acquisition-related
amortization which was primarily related to transaction costs
resulting from the acquisition and was recorded in operating
income. Management believes excluding this charge from certain
financial results provides meaningful supplemental information
regarding our financial results for the three months ended
June 30, 2019, since a charge of such amount is not comparable
among the periods. This is consistent with how our management
reviews and assesses Equifax's historical performance and is useful
when planning, forecasting, and analyzing future periods.
Adjusted EBITDA and EBITDA margin - Management
defines adjusted EBITDA as consolidated net income attributable to
Equifax plus net interest expense, income taxes, depreciation and
amortization, and also excludes certain one-time items. Management
believes the use of adjusted EBITDA and adjusted EBITDA margin
allows investors to evaluate our performance for different periods
on a more comparable basis.
Contact:
Trevor
Burns
|
Ben
Sheidler
|
Investor
Relations
|
Media
Relations
|
(404)
885-8804
|
ben.sheidler@equifax.com
|
trevor.burns@equifax.com
|
|
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SOURCE Equifax Inc.