Equifax Reports Record Revenue in the Third Quarter

Equifax Inc. (NYSE: EFX) today reported third quarter 2005 earnings with record revenue and maintained consistent growth in profits across all businesses.

Earnings from continuing operations were $63 million, a 17 percent increase from the third quarter of 2004, on 17 percent growth in revenue to a record of $375 million. Earnings per share were $0.47, up 17 percent. Cash flow provided by operating activities for the third quarter of 2005 was $103 million, up 10 percent.

Adjusted on a non-GAAP basis for the impact of the Fair and Accurate Credit Transactions Act (“FACT Act”), revenue was $365 million, up 14 percent; earnings from continuing operations were $59 million, up 11 percent; and earnings per share were $0.45, up 11 percent.

“Equifax’s continued strong earnings are a testament to the talented team that continues to guide this great company,” said Richard F. Smith, Equifax chairman-elect and CEO. Smith joined Equifax on September 19. “Our business leaders are executing our strategy with precision and that is reflected in our numbers.”

Third Quarter 2005 Financial Highlights

• Operating profit margin was 29 percent compared to 30 percent in the third quarter 2004.
• Revenue of $375 million, an increase of 17 percent from last year, reflected continued strong performances by North America Information Services, Personal Solutions and Latin America.
• Free cash flow (a non-GAAP measure), which is an alternative measure of liquidity (and is defined as cash provided by operating activities less capital-related expenditures), was $92 million, an increase of 13 percent from $81 million in third quarter 2004.
• Total debt at September 30, 2005 decreased by $47 million to $608 million from December 31, 2004. The remaining borrowing capacity at September 30, 2005 under Equifax’s committed financing facilities totaled $407 million.
• Equifax repurchased 1.2 million shares of its common stock for $40 million and had $144 million remaining under its current authorization.

Third Quarter 2005 Operating Highlights

North America
Total revenue increased 17 percent to $306 million in the third quarter, compared to $261 million in the prior year. North America Information Services reported revenue of $211 million, up 19 percent; excluding the impact of the FACT Act (a non-GAAP measure), $201 million, up 13 percent. Marketing Services revenue in North America was $66 million, up 9 percent. Personal Solutions increased revenue 22 percent to $29 million.