Equifax, Inc. (EFX)

Get EFX Alerts
*Delayed - data as of Jul. 29, 2015  -  Find a broker to begin trading EFX now
Exchange: NYSE
Industry: Finance
Community Rating:
View:    EFX Pre-Market
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
Basic Chart Interactive Chart
Company Headlines Press Releases Market Stream
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save Stocks

Equifax (EFX)

Q4 2012 Earnings Call

February 07, 2013 8:30 am ET


Jeffrey L. Dodge - Senior Vice President of Investor Relations

Richard F. Smith - Chairman and Chief Executive Officer

Lee Adrean - Chief Financial Officer and Corporate Vice President


David Togut - Evercore Partners Inc., Research Division

Manav Patnaik - Barclays Capital, Research Division

Paul Ginocchio - Deutsche Bank AG, Research Division

Andrew W. Jeffrey - SunTrust Robinson Humphrey, Inc., Research Division

Carter Malloy - Stephens Inc., Research Division

Allison Jordan

Andrew C. Steinerman - JP Morgan Chase & Co, Research Division

William A. Warmington - Raymond James & Associates, Inc., Research Division

Daniel R. Leben - Robert W. Baird & Co. Incorporated, Research Division



Good day, everyone, and welcome to the Q4 2012 Equifax Earnings Call. Today's conference is being recorded. At this time, it is my pleasure to turn the conference over to Mr. Jeff Dodge. Please go ahead.

Jeffrey L. Dodge

Thank you, and good morning, everyone, and welcome to today's conference call. I'm Jeff Dodge, Investor Relations, and with me today are Rick Smith, Chairman and Chief Executive Officer; and Lee Adrean, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the Investor Relations section of the About Equifax tab on our website at www.equifax.com.

During this call, we'll be making certain forward-looking statements to help you understand Equifax and its business environment. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from our expectations. Certain risk factors inherent in our business are set forth in the filings with the SEC, including our 2011 Form 10-K and subsequent filings. We will also refer to certain non-GAAP financial measures, adjusted diluted EPS attributable to Equifax and adjusted operating margin.

Adjusted diluted EPS attributable to Equifax excludes the CSC acquisition fees, a pension settlement which we announced during the quarter, certain income tax items, the loss on the deconsolidation of our Brazilian business and acquisition-related amortization expense.

Adjusted operating margin excludes the CSC acquisition fees and the pension settlement, which was a noncash charge. These measures are detailed in our non-GAAP reconciliation tables included with our earnings release and also posted on our website. Please refer to the non-GAAP reconciliation in our various investor presentations, which are posted in the Investor Relations section, under the About Equifax tab on our website.

Now I'd like to turn it over to Rick.

Richard F. Smith

Thanks, Jeff, and good morning, everyone. It's hard to believe it's already been 2 months since we were with many of you at New York Stock Exchange. Hopefully, you found that a great opportunity to see our management team first hand, get a better understanding of our strategy and some of our key growth initiatives. Based upon your feedback, it appears the insight and outlook we provided you was viewed positive. We're excited about the growth opportunities that lie ahead. We want to thank you again for your time and your interest in our company. As you know, we have been intensely focused on the rapid deployment of innovation and the continuous strive to improve our execution. Our performance for this quarter and for the year reflects that effort.

For the fourth quarter of 2012, total revenue was $558 million, up 9.5% from the fourth quarter of 2011. The adjusted operating margin was 24.9% compared to 24.7% in 2011, up 20 basis points. And finally, the adjusted EPS was $0.78, up 14% from $0.68 a year ago. Across many dimensions, 2012 was a record year for Equifax. For the first time in our history, we surpassed $2 billion in revenue. We added over $1.8 billion in market value, and we closed the acquisition of our largest and last affiliate in the United States, CSC Credit Services. And we broadened our product offerings, we also expanded our global presence. All in all, a good year.

Each of our business units has some very noteworthy accomplishments in 2012. We expect their success last year to fuel the momentum in 2013. For the year, USCIS delivered 16% revenue growth and expanded operating margins by over 100 basis points. A couple of highlights for USCIS, we formalized our enterprise-wide distribution process, leveraging the scale, skill and scope of USCIS customer relationships that still services by Workforce Solutions, North American Commercial Solutions and North American Personal Solutions. So I could tell you firsthand that the traction that it's gained and the difference it's made in the marketplace is significant and of great value for our customers, too.

Secondly, in USCIS, we expanded our key client program, something we introduced a number of years ago. We have 2 new clients under Tom Madison's leadership, and we strengthened the management team with both outside hires and internal promotions.

We also took this model, this KCP Service Model, into new verticals, specifically the telco market to better address the needs of a very large and important market segment to us. Also in USCIS, we expanded our Decision 360 strategy and it's delivering significant wins in the marketplace, as we demonstrate and differentiate the value of the unique insights we bring to our customers' critical decisioning needs. That will continue to be a great focus for us in 2013 and beyond, as well.

International. Excluding the results of Brazil in 2011, International delivered solid constant dollar organic growth of 9% while maintaining 30% operating margins and further penetrating our key markets with new products and services. Here's a handful of highlights. We continue to leverage our strong franchise in key geographies with new product innovation, growth of our analytics and enabling technology services, broadening our served markets and increasing the scale of operations through better IT and organizational discipline. Despite really weak economies, our U.K. and Spanish management teams relentlessly executed on their strategic initiatives, enabling us to gain market share and deliver a 10% local currency growth in revenue for the year.

Read the rest of this transcript for free on seekingalpha.com