ATLANTA, Feb. 6, 2025
/PRNewswire/ -- Equifax® (NYSE: EFX) today
announced financial results for the quarter and full year ended
December 31, 2024.
- Fourth quarter 2024 revenue of $1.419
billion up 7%, with 9% local currency revenue growth,
despite weaker U.S. hiring and mortgage markets.
- Fourth quarter U.S. Mortgage revenue up very strong 29%.
- New Product Innovation leveraging new EFX Cloud delivered 12%
new product Vitality Index.
- Workforce Solutions fourth quarter revenue grew 7%, with 10%
Verification Services revenue growth led by Government and
Mortgage, despite weaker U.S. hiring and mortgage markets. Employer
Services revenue declined 9% in the quarter.
- USIS fourth quarter revenue grew over 10% from 47% Mortgage
revenue growth.
- International fourth quarter revenue grew 11% on a local
currency basis with 3% on a reported basis.
- Nearing EFX Cloud completion with close to 85% of revenue in
the Cloud.
- Strong cash flow and balance sheet positioning Equifax well to
grow our dividend and to return cash to shareholders through share
repurchases in 2025.
- Issuing full-year 2025 guidance midpoint expectation for
revenue of $5.950 billion, up 4.7%,
with constant currency organic revenue growth of about 6% and
Adjusted EPS of $7.45 per share. This
reflects an expected about 12% decline in our outlook for 2025 U.S.
mortgage hard credit inquiries.
"Equifax delivered fourth quarter revenue of $1.419 billion, up 7% on a reported basis and 9%
on a local currency basis, led by very strong 29% U.S. Mortgage
revenue growth and continued significant New Product Innovation
performance with a Vitality Index of 12%, despite headwinds from
the U.S. hiring and mortgage markets. Workforce Solutions delivered
7% revenue growth, driven by strong 10% Verification Services
revenue growth led by the Government and Mortgage businesses with
lower Talent Solutions revenue from the weaker U.S. hiring market.
Employer Services revenue declined 9% in the quarter and was also
impacted by the U.S. hiring market. USIS delivered strong revenue
growth of over 10%, led by very strong 47% Mortgage revenue growth.
International delivered strong 11% local currency revenue growth
led by Latin America," said
Mark W. Begor, Equifax Chief
Executive Officer.
"We are issuing our full-year 2025 guidance midpoint expectation
for revenue of $5.950 billion, up
4.7% on a reported basis and 6% on an organic constant currency
basis. Our full-year 2025 guidance midpoint expectation for
Adjusted EPS is $7.45 per share, up
2% versus 2024. While Equifax continues to execute well against its
EFX2027 Strategic Priorities, our 2025 guidance reflects an
expectation of an about 12% decline in our 2025 U.S. hard mortgage
credit inquiries, compared to down 10% in 2024.
We executed very well against our EFX2027 Strategic Priorities
in 2024, despite market headwinds, with close to 85% of our
revenue in the new EFX Cloud. In 2024, Equifax delivered
$813 million of free cash flow, up
58% versus 2023, and strengthened our balance sheet, positioning us
well to grow our dividend and return cash to shareholders through
share repurchases in 2025. With our North American Consumer Cloud
migrations substantially completed, we are leveraging our new Cloud
capabilities to accelerate new product solutions leveraging our
differentiated data assets; and investing in new products, data,
analytics, and EFX.AI capabilities which are expected to drive
growth in 2025 and beyond. We are energized about the New Equifax
that is expected to deliver higher margins and accelerating free
cash flow in the future."
Financial Results Summary
The Company reported revenue of $1,419.4
million in the fourth quarter of 2024, a 7% increase on a
reported basis and 9% increase on a local currency basis compared
to the fourth quarter of 2023.
Fourth quarter 2024 diluted EPS attributable to Equifax was
$1.39 per share, up from $1.06 per share in the fourth quarter of
2023.
Net income attributable to Equifax of $174.0 million in the fourth quarter of 2024 was
up 31% compared to $132.4 million in
the fourth quarter of 2023.
For the full year 2024, revenue was $5,681.1 million, an 8% increase compared to 2023
on a reported basis and 10% increase on a local currency basis.
Diluted EPS attributable to Equifax was $4.84 per share, up compared to $4.40 per share for the full year 2023. Net
income attributable to Equifax was $604.1
million, up 11% compared to net income of $545.3 million for the full year 2023.
Workforce Solutions fourth quarter results
- Total revenue was $598.1 million
in the fourth quarter of 2024, up 7% compared to the fourth quarter
of 2023. Operating margin for Workforce Solutions was 43.1% in the
fourth quarter of 2024 compared to 41.9% in the fourth quarter of
2023. Adjusted EBITDA margin for Workforce Solutions was 51.9% in
the fourth quarter of 2024 compared to 51.2% in the fourth quarter
of 2023.
- Verification Services revenue was $504.7
million, up 10% compared to the fourth quarter of 2023.
- Employer Services revenue was $93.4
million, down 9% compared to the fourth quarter of
2023.
USIS fourth quarter results
- Total revenue was $472.5 million
in the fourth quarter of 2024, up 10% compared to the fourth
quarter of 2023. Operating margin for USIS was 24.4% in the fourth
quarter of 2024 compared to 22.0% in the fourth quarter of 2023.
Adjusted EBITDA margin for USIS was 38.3% in the fourth quarter of
2024 compared to 35.1% in the fourth quarter of 2023.
- Online Information Solutions revenue was $362.1 million, up 11% compared to the fourth
quarter of 2023.
- Mortgage Solutions revenue was $32.9
million, up 44% compared to the fourth quarter of 2023.
- Financial Marketing Services revenue was $77.5 million, flat compared to the fourth
quarter of 2023.
International fourth quarter results
- Total revenue was $348.8 million
in the fourth quarter of 2024, up 3% and up 11% compared to the
fourth quarter of 2023 on a reported and local currency basis,
respectively. Operating margin for International was 17.4% in the
fourth quarter of 2024 compared to 17.9% in the fourth quarter of
2023. Adjusted EBITDA margin for International was 32.5% in the
fourth quarter of 2024 compared to 31.2% in the fourth quarter of
2023.
- Latin America revenue was
$99.9 million, up 1% compared to the
fourth quarter of 2023 on a reported basis and up 29% on a local
currency basis.
- Europe revenue was
$99.8 million, up 7% compared to the
fourth quarter of 2023 on a reported basis and up 4% on a local
currency basis.
- Asia Pacific revenue was
$84.0 million, up 2% compared to the
fourth quarter of 2023 on both a reported and local currency
basis.
- Canada revenue was
$65.1 million, flat compared to the
fourth quarter of 2023 on a reported basis and up 3% on a local
currency basis.
Adjusted EPS and Adjusted EBITDA Margin
- Adjusted EPS attributable to Equifax was $2.12 in the fourth quarter of 2024, up 17%
compared to the fourth quarter of 2023. Adjusted EBITDA margin was
35.4% in the fourth quarter of 2024 compared to 33.7% in the fourth
quarter of 2023.
- Full year adjusted EPS attributable to Equifax was $7.29, up 9% compared to the prior year period.
Full year adjusted EBITDA margin was 32.3% compared to 32.2% in
2023.
- These financial measures exclude certain items as described
further in the Non-GAAP Financial Measures section below.
|
2025 First Quarter
and Full Year Guidance
|
|
|
|
Q1
2025
|
|
FY
2025
|
|
Low-End
|
|
High-End
|
|
Low-End
|
|
High-End
|
|
Reported
Revenue
|
$1.390
billion
|
|
$1.420
billion
|
|
$5.890
billion
|
|
$6.010
billion
|
|
Reported Revenue
Growth
|
— %
|
|
2.2 %
|
|
3.7 %
|
|
5.8 %
|
|
Local Currency Growth
(1)
|
1.6 %
|
|
3.8 %
|
|
5.0 %
|
|
7.1 %
|
|
Organic Local Currency
Growth (1)
|
1.6 %
|
|
3.8 %
|
|
5.0 %
|
|
7.1 %
|
|
Adjusted Earnings Per
Share
|
$1.33 per
share
|
|
$1.43 per
share
|
|
$7.25 per
share
|
|
$7.65 per
share
|
|
|
(1) Refer to page 9 for
definitions. Additionally, the definitions can be found in the
Non-GAAP Financial Measures below.
|
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, employers, 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 nearly
15,000 employees worldwide, Equifax operates or has investments in
24 countries in North America,
Central and South America,
Europe, and the Asia Pacific region. For more information,
visit www.equifax.com.
Earnings Conference Call and Audio Webcast
In conjunction with this release, Equifax will host a conference
call on February 6, 2025 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, accrual for legal and
regulatory matters related to the 2017 cybersecurity incident, fair
market value adjustment and gain on sale of equity investment,
pension mark-to-market fair value adjustment, foreign currency
impact of certain intercompany loans, acquisition-related costs
other than acquisition amortization, realignment of resources and
other costs, income tax effect of stock awards recognized upon
vesting or settlement, Argentina
highly inflationary foreign currency adjustment, adjustments to
deferred tax balances, reversal of a valuation allowance for
certain deferred tax assets and legal settlement. All adjustments
are net of tax, with a reconciling item with the aggregated tax
impact of the adjustments. This earnings release also presents (i)
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, (ii) local currency revenue change
which is calculated by conforming 2024 results using 2023 exchange
rates, (iii) organic local currency revenue growth which is defined
as local currency revenue growth, adjusted to reflect an increase
in prior year Equifax revenue from the revenue of acquired
companies in the prior year period, (iv) free cash flow, which is
defined as cash provided by operating activities less capital
expenditures, and (v) cash conversion, which is defined as the
ratio of free cash flow to adjusted net income. 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, revenue growth, results of operations and
financial performance, strategic initiatives, business plans,
prospects and opportunities, the U.S. mortgage market, economic
conditions and effective tax rates.
While Equifax 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. These factors relate to (i) actions
taken by us, including, but not limited to, restructuring actions,
strategic initiatives (such as our cloud technology
transformation), capital investments and asset acquisitions or
dispositions, as well as (ii) developments beyond our control,
including, but not limited to, changes in the U.S. mortgage market
environment and changes more generally in U.S. and worldwide
economic conditions (such as changes in interest rates and
inflation levels) that materially impact consumer spending, home
prices, investment values, consumer debt, unemployment rates and
the demand for Equifax's products and services. Deteriorations in
economic conditions or increases in interest rates could lead to a
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.
Other risk factors relevant to our business include: (i) any
compromise of Equifax, customer or consumer information due to
security breaches and other disruptions to our information
technology infrastructure; (ii) the failure to achieve and maintain
key industry or technical certifications; (iii) the failure to
realize the anticipated benefits of our cloud technology
transformation strategy; (iv) operational disruptions and strain on
our resources caused by our transition to cloud-based technologies;
(v) our ability to meet customer requirements for high system
availability and response time performance; (vi) effects on our
business if we provide inaccurate or unreliable data to customers;
(vii) our ability to maintain access to credit, employment,
financial and other data from external sources; (viii) the impact
of competition; (ix) our ability to maintain relationships with key
customers and business partners; (x) our ability to successfully
introduce new products, services and analytical capabilities; (xi)
the impact on the demand for some of our products and services due
to the availability of free or less expensive consumer information;
(xii) our ability to comply with our obligations under settlement
agreements arising out of a material cybersecurity incident in
2017; (xiii) potential adverse developments in new and pending
legal proceedings, government investigations and regulatory
enforcement actions; (xiv) changes in, and the effects of, laws,
regulations and government policies governing our business,
including oversight by the Consumer Financial Protection Bureau in
the U.S., the U.K. Financial Conduct Authority and Information
Commissioner's Office in the U.K., and the Office of Australian
Information Commission and the Australian Competition and Consumer
Commission in Australia; (xv) the
impact of privacy, cybersecurity or other data-related laws and
regulations; (xvi) the economic, political and other risks
associated with international sales and operations; (xvii) the
impact on our reputation and business from our responsible business
commitments and disclosures; (xviii) our ability to realize the
anticipated strategic and financial benefits from our acquisitions,
joint ventures and other alliances; (xix) any damage to our
reputation due to our dependence on outsourcing certain portions of
our operations; (xx) the termination or suspension of our
government contracts; (xxi) the impact of infringement or
misappropriation of intellectual property by us against third
parties or by third parties against us; (xxii) an increase in our
cost of borrowing and our ability to access the capital markets due
to a credit rating downgrade; (xxiii) our ability to hire and
retain key personnel; (xxiv) the impact of adverse changes in the
financial markets and corresponding effects on our retirement and
post-retirement pension plans; (xxv) the impact of health
epidemics, pandemics and similar outbreaks on our business; and
(xxvi) risks associated with our use of certain artificial
intelligence and machine learning models and systems.
A summary of additional risks and uncertainties can be found in
our Annual Report on Form 10-K for the year ended December 31,
2023 including without limitation under the captions "Item 1.
Business -- Governmental Regulation," "-- 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
Equifax 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 INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
Three Months
Ended
December
31,
|
|
|
2024
|
|
2023
|
|
(In millions, except
per share amounts)
|
|
(Unaudited)
|
|
Operating
revenue
|
|
$
1,419.4
|
|
$
1,326.5
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of services
(exclusive of depreciation and amortization below)
|
|
615.0
|
|
581.6
|
|
Selling, general and
administrative expenses
|
|
344.7
|
|
343.4
|
|
Depreciation and
amortization
|
|
171.6
|
|
156.4
|
|
Total operating
expenses
|
|
1,131.3
|
|
1,081.4
|
|
Operating
income
|
|
288.1
|
|
245.1
|
|
Interest
expense
|
|
(55.8)
|
|
(60.3)
|
|
Other expense,
net
|
|
(6.7)
|
|
(2.0)
|
|
Consolidated income
before income taxes
|
|
225.6
|
|
182.8
|
|
Provision for income
taxes
|
|
(52.2)
|
|
(48.3)
|
|
Consolidated net
income
|
|
173.4
|
|
134.5
|
|
Less: Net
loss (income) attributable to noncontrolling interests including
redeemable
noncontrolling interests
|
|
0.6
|
|
(2.1)
|
|
Net income attributable
to Equifax
|
|
$
174.0
|
|
$
132.4
|
|
Basic earnings per
common share:
|
|
|
|
|
|
Net income
attributable to Equifax
|
|
$
1.40
|
|
$
1.07
|
|
Weighted-average shares
used in computing basic earnings per share
|
|
124.0
|
|
123.3
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
Net income
attributable to Equifax
|
|
$
1.39
|
|
$
1.06
|
|
Weighted-average shares
used in computing diluted earnings per share
|
|
125.1
|
|
124.4
|
|
Dividends per common
share
|
|
$
0.39
|
|
$
0.39
|
|
EQUIFAX INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
Twelve Months
Ended
December
31,
|
|
|
2024
|
|
2023
|
|
(In millions, except
per share amounts)
|
|
(Unaudited)
|
|
Operating
revenue
|
|
$
5,681.1
|
|
$
5,265.2
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of services
(exclusive of depreciation and amortization below)
|
|
2,518.7
|
|
2,335.1
|
|
Selling, general and
administrative expenses
|
|
1,450.5
|
|
1,385.7
|
|
Depreciation and
amortization
|
|
669.8
|
|
610.8
|
|
Total operating
expenses
|
|
4,639.0
|
|
4,331.6
|
|
Operating
income
|
|
1,042.1
|
|
933.6
|
|
Interest
expense
|
|
(229.1)
|
|
(241.4)
|
|
Other (expense)
income, net
|
|
(2.5)
|
|
25.7
|
|
Consolidated income
before income taxes
|
|
810.5
|
|
717.9
|
|
Provision for income
taxes
|
|
(203.2)
|
|
(166.2)
|
|
Consolidated income
from continuing operations
|
|
607.3
|
|
551.7
|
|
Less: Net income
attributable to noncontrolling interests including redeemable
noncontrolling
interests
|
|
(3.2)
|
|
(6.4)
|
|
Net income attributable
to Equifax
|
|
$
604.1
|
|
$
545.3
|
|
Basic earnings per
common share:
|
|
|
|
|
|
Net income
attributable to Equifax
|
|
$
4.88
|
|
$
4.44
|
|
Weighted-average shares
used in computing basic earnings per share
|
|
123.8
|
|
122.9
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
Net income
attributable to Equifax
|
|
$
4.84
|
|
$
4.40
|
|
Weighted-average shares
used in computing diluted earnings per share
|
|
124.9
|
|
123.9
|
|
Dividends per common
share
|
|
$
1.56
|
|
$
1.56
|
|
EQUIFAX INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
(In millions, except par values)
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
169.9
|
|
$
216.8
|
|
Trade accounts receivable, net of allowance for doubtful accounts of $16.9 and $16.7 at
December
31, 2024 and 2023, respectively
|
|
957.6
|
|
908.2
|
|
Prepaid expenses
|
|
134.9
|
|
142.5
|
|
Other current assets
|
|
98.2
|
|
88.8
|
|
Total current assets
|
|
1,360.6
|
|
1,356.3
|
|
Property and equipment:
|
|
|
|
|
|
Capitalized internal-use software and system costs
|
|
2,817.5
|
|
2,541.0
|
|
Data processing equipment and furniture
|
|
229.6
|
|
247.9
|
|
Land, buildings and improvements
|
|
285.0
|
|
272.9
|
|
Total property and equipment
|
|
3,332.1
|
|
3,061.8
|
|
Less accumulated depreciation and amortization
|
|
(1,440.2)
|
|
(1,227.8)
|
|
Total property and equipment, net
|
|
1,891.9
|
|
1,834.0
|
|
Goodwill
|
|
6,547.8
|
|
6,829.9
|
|
Indefinite-lived intangible assets
|
|
94.7
|
|
94.8
|
|
Purchased intangible assets, net
|
|
1,521.0
|
|
1,858.8
|
|
Other assets, net
|
|
343.4
|
|
306.2
|
|
Total assets
|
|
$
11,759.4
|
|
$ 12,280.0
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term debt and current maturities
of long-term debt
|
|
$
687.7
|
|
$
963.4
|
|
Accounts payable
|
|
138.2
|
|
197.6
|
|
Accrued expenses
|
|
251.1
|
|
245.1
|
|
Accrued salaries and bonuses
|
|
215.8
|
|
168.7
|
|
Deferred revenue
|
|
115.5
|
|
109.5
|
|
Other current liabilities
|
|
403.2
|
|
334.7
|
|
Total current liabilities
|
|
1,811.5
|
|
2,019.0
|
|
Long-term debt
|
|
4,322.8
|
|
4,747.8
|
|
Deferred income tax liabilities, net
|
|
351.6
|
|
474.9
|
|
Long-term pension and other postretirement benefit liabilities
|
|
106.7
|
|
100.1
|
|
Other long-term liabilities
|
|
247.2
|
|
250.7
|
|
Total liabilities
|
|
6,839.8
|
|
7,592.5
|
|
Redeemable
noncontrolling interests
|
|
105.2
|
|
135.1
|
|
Equifax shareholders' equity:
|
|
|
|
|
|
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 December
31, 2024 and 2023;
Outstanding shares -
124.0 and 123.3 at December
31, 2024 and 2023, respectively
|
|
236.6
|
|
236.6
|
|
Paid-in
capital
|
|
1,915.2
|
|
1,761.3
|
|
Retained earnings
|
|
6,018.6
|
|
5,608.6
|
|
Accumulated other comprehensive loss
|
|
(722.7)
|
|
(431.2)
|
|
Treasury stock, at
cost, 64.7 shares and 65.4 shares at December
31, 2024 and 2023,
respectively
|
|
(2,644.9)
|
|
(2,635.3)
|
|
Stock held by employee benefits trusts, at cost,
0.6 shares at December
31, 2024 and 2023
|
|
(5.9)
|
|
(5.9)
|
|
Total Equifax shareholders' equity
|
|
4,796.9
|
|
4,534.1
|
|
Noncontrolling interests
|
|
17.5
|
|
18.3
|
|
Total shareholders' equity
|
|
4,814.4
|
|
4,552.4
|
|
Total liabilities,
redeemable noncontrolling interests, and
shareholders' equity
|
|
$
11,759.4
|
|
$ 12,280.0
|
|
EQUIFAX INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Twelve Months
Ended
December
31,
|
|
|
2024
|
|
2023
|
|
(In
millions)
|
|
(Unaudited)
|
|
Operating
activities:
|
|
|
|
|
|
Consolidated net
income
|
|
$
607.3
|
|
$
551.7
|
|
Adjustments to
reconcile consolidated net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
680.6
|
|
619.8
|
|
Stock-based
compensation expense
|
|
81.6
|
|
71.8
|
|
Deferred income
taxes
|
|
(66.9)
|
|
(70.2)
|
|
Gain on fair market
value adjustment and gain on sale of equity investment
|
|
—
|
|
(13.8)
|
|
Changes in assets and
liabilities, excluding effects of acquisitions:
|
|
|
|
|
|
Accounts receivable,
net
|
|
(66.3)
|
|
(23.3)
|
|
Other assets, current
and long-term
|
|
(29.5)
|
|
(13.0)
|
|
Current and long-term
liabilities, excluding debt
|
|
117.7
|
|
(6.2)
|
|
Cash provided by
operating activities
|
|
1,324.5
|
|
1,116.8
|
|
Investing
activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(511.5)
|
|
(601.3)
|
|
Acquisitions, net of
cash acquired
|
|
—
|
|
(283.8)
|
|
Cash received from
divestitures
|
|
—
|
|
6.9
|
|
Cash used in investing
activities
|
|
(511.5)
|
|
(878.2)
|
|
Financing
activities:
|
|
|
|
|
|
Net short-term
borrowings (payments)
|
|
91.2
|
|
(371.2)
|
|
Payments on long-term
debt
|
|
(1,445.6)
|
|
(579.3)
|
|
Proceeds from issuance
of long-term debt
|
|
649.8
|
|
872.9
|
|
Dividends paid to
Equifax shareholders
|
|
(193.2)
|
|
(191.8)
|
|
Distributions paid to
noncontrolling interests
|
|
(4.6)
|
|
(45.6)
|
|
Proceeds from exercise
of stock options and employee stock purchase plan
|
|
78.2
|
|
32.3
|
|
Payment of taxes
related to settlement of equity awards
|
|
(16.8)
|
|
(17.3)
|
|
Debt issuance
costs
|
|
(5.4)
|
|
(6.2)
|
|
Cash used in financing
activities
|
|
(846.4)
|
|
(306.2)
|
|
Effect of foreign
currency exchange rates on cash and cash equivalents
|
|
(13.5)
|
|
(0.8)
|
|
Decrease in cash and
cash equivalents
|
|
(46.9)
|
|
(68.4)
|
|
Cash and cash
equivalents, beginning of period
|
|
216.8
|
|
285.2
|
|
Cash and cash
equivalents, end of period
|
|
$
169.9
|
|
$
216.8
|
Common Questions & Answers (Unaudited)
(Dollars in
millions)
1. Can you provide a further analysis of
operating revenue for the fourth quarter and the full year by
operating segment?
Operating revenue consists of the following components:
|
(In
millions)
|
|
Three Months
Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
Currency
|
|
Organic Local
Currency
|
|
Operating
revenue:
|
|
2024
|
|
2023
|
|
$ Change
|
|
% Change
|
|
% Change
(1)
|
|
% Change
(2)
|
|
Verification
Services
|
|
$
504.7
|
|
$
457.1
|
|
$
47.6
|
|
10 %
|
|
|
|
10 %
|
|
Employer
Services
|
|
93.4
|
|
102.4
|
|
(9.0)
|
|
(9) %
|
|
|
|
(9) %
|
|
Total Workforce
Solutions
|
|
598.1
|
|
559.5
|
|
38.6
|
|
7 %
|
|
|
|
7 %
|
|
Online Information
Solutions
|
|
362.1
|
|
327.5
|
|
34.6
|
|
11 %
|
|
|
|
11 %
|
|
Mortgage
Solutions
|
|
32.9
|
|
22.9
|
|
10.0
|
|
44 %
|
|
|
|
44 %
|
|
Financial Marketing
Services
|
|
77.5
|
|
77.3
|
|
0.2
|
|
— %
|
|
|
|
— %
|
|
Total U.S. Information
Solutions
|
|
472.5
|
|
427.7
|
|
44.8
|
|
10 %
|
|
|
|
10 %
|
|
Latin
America
|
|
99.9
|
|
98.6
|
|
1.3
|
|
1 %
|
|
29 %
|
|
29 %
|
|
Europe
|
|
99.8
|
|
93.6
|
|
6.2
|
|
7 %
|
|
4 %
|
|
4 %
|
|
Asia Pacific
|
|
84.0
|
|
82.2
|
|
1.8
|
|
2 %
|
|
2 %
|
|
2 %
|
|
Canada
|
|
65.1
|
|
64.9
|
|
0.2
|
|
— %
|
|
3 %
|
|
3 %
|
|
Total
International
|
|
348.8
|
|
339.3
|
|
9.5
|
|
3 %
|
|
11 %
|
|
11 %
|
|
Total operating
revenue
|
|
$
1,419.4
|
|
$
1,326.5
|
|
$
92.9
|
|
7 %
|
|
9 %
|
|
9 %
|
|
|
(In
millions)
|
|
Twelve Months
Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
Currency
|
|
Organic Local
Currency
|
|
Operating
revenue:
|
|
2024
|
|
2023
|
|
$ Change
|
|
% Change
|
|
% Change
(1)
|
|
% Change
(2)
|
|
Verification
Services
|
|
$
2,021.9
|
|
$
1,846.2
|
|
$
175.7
|
|
10 %
|
|
|
|
10 %
|
|
Employer
Services
|
|
411.9
|
|
469.6
|
|
(57.7)
|
|
(12) %
|
|
|
|
(12) %
|
|
Total Workforce
Solutions
|
|
2,433.8
|
|
2,315.8
|
|
118.0
|
|
5 %
|
|
|
|
5 %
|
|
Online Information
Solutions
|
|
1,501.2
|
|
1,375.2
|
|
126.0
|
|
9 %
|
|
|
|
9 %
|
|
Mortgage
Solutions
|
|
149.4
|
|
113.7
|
|
35.7
|
|
31 %
|
|
|
|
31 %
|
|
Financial Marketing
Services
|
|
242.4
|
|
231.5
|
|
10.9
|
|
5 %
|
|
|
|
5 %
|
|
Total U.S. Information
Solutions
|
|
1,893.0
|
|
1,720.4
|
|
172.6
|
|
10 %
|
|
|
|
10 %
|
|
Latin
America
|
|
384.9
|
|
290.9
|
|
94.0
|
|
32 %
|
|
69 %
|
|
27 %
|
|
Europe
|
|
369.2
|
|
333.2
|
|
36.0
|
|
11 %
|
|
8 %
|
|
8 %
|
|
Asia Pacific
|
|
335.4
|
|
345.3
|
|
(9.9)
|
|
(3) %
|
|
(2) %
|
|
(2) %
|
|
Canada
|
|
264.8
|
|
259.6
|
|
5.2
|
|
2 %
|
|
4 %
|
|
4 %
|
|
Total
International
|
|
1,354.3
|
|
1,229.0
|
|
125.3
|
|
10 %
|
|
19 %
|
|
10 %
|
|
Total operating
revenue
|
|
$
5,681.1
|
|
$
5,265.2
|
|
$
415.9
|
|
8 %
|
|
10 %
|
|
8 %
|
|
|
|
(1)
|
Local currency revenue
change is calculated by conforming 2024 results using 2023 exchange
rates.
|
|
|
|
(2)
|
Organic local currency
revenue growth is defined as local currency revenue growth,
adjusted to reflect an increase in prior year Equifax revenue from
the revenue of acquired companies in the prior year period. This
adjustment is made for 12 months following the
acquisition.
|
2. What is the estimate of the change in overall U.S.
mortgage hard pull credit inquiry volume that is included in the
2025 first quarter and full year guidance provided?
The change year over year in total U.S. mortgage hard pull
credit inquiries received by Equifax in the fourth quarter of 2024
was about flat. The guidance provided on page 3 assumes a change
year over year in total U.S. mortgage hard pull credit inquiries
received by Equifax in the first quarter of 2025 to be a decline of
about 13%. For full year 2025, our guidance assumes a decline of
about 12%.
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 adjusted net income attributable to
Equifax and adjusted diluted EPS attributable to Equifax, defined
as net income and EPS, respectively, each adjusted for
acquisition-related amortization expense, accrual for legal and
regulatory matters related to the 2017 cybersecurity incident, fair
market value adjustment and gain on sale of equity investments,
pension mark-to-market fair value adjustment, foreign currency
impact of certain intercompany loans, acquisition-related costs
other than acquisition amortization, realignment of resources and
other costs, income tax effect of stock awards recognized upon
vesting or settlement, Argentina
highly inflationary foreign currency adjustment, adjustments to
deferred tax balances, reversal of a valuation allowance for
certain deferred tax assets, legal settlement, and aggregated tax
impact of these adjustments:
|
|
Three Months
Ended
December
31,
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
2024
|
|
2023
|
|
$ Change
|
|
% Change
|
|
Net income attributable
to Equifax
|
|
$
174.0
|
|
$
132.4
|
|
$
41.6
|
|
31 %
|
|
Acquisition-related
amortization expense of certain acquired intangibles
(1)
|
|
64.1
|
|
65.4
|
|
(1.3)
|
|
(2) %
|
|
Accrual for legal and
regulatory matters related to the 2017 cybersecurity incident
(2)
|
|
0.1
|
|
1.9
|
|
(1.8)
|
|
(95) %
|
|
Pension mark-to-market
fair value adjustment (4)
|
|
11.6
|
|
0.1
|
|
11.5
|
|
nm
|
|
Foreign currency impact
of certain intercompany loans (5)
|
|
0.3
|
|
1.3
|
|
(1.0)
|
|
(77) %
|
|
Acquisition-related
costs other than acquisition amortization (6)
|
|
20.0
|
|
27.2
|
|
(7.2)
|
|
(26) %
|
|
Realignment of
resources and other costs (7)
|
|
6.4
|
|
19.4
|
|
(13.0)
|
|
(67) %
|
|
Income tax effects of
stock awards that are recognized upon vesting or settlement
(8)
|
|
(0.6)
|
|
(0.6)
|
|
—
|
|
— %
|
|
Argentina highly
inflationary foreign currency adjustment (9)
|
|
0.6
|
|
3.2
|
|
(2.6)
|
|
(81) %
|
|
Adjustments to deferred
tax balances (10)
|
|
—
|
|
1.0
|
|
(1.0)
|
|
nm
|
|
Reversal of valuation
allowance for certain deferred tax assets
(11)
|
|
(4.6)
|
|
—
|
|
(4.6)
|
|
nm
|
|
Legal Settlement
(12)
|
|
15.0
|
|
—
|
|
15.0
|
|
nm
|
|
Tax impact of
adjustments (13)
|
|
(22.0)
|
|
(25.9)
|
|
3.9
|
|
(15) %
|
|
Adjusted net income
attributable to Equifax
|
|
$
264.9
|
|
$
225.4
|
|
$
39.5
|
|
18 %
|
|
Adjusted diluted EPS
attributable to Equifax
|
|
$
2.12
|
|
$
1.81
|
|
$
0.31
|
|
17 %
|
|
Weighted-average shares
used in computing diluted EPS
|
|
125.1
|
|
124.4
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December
31,
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
2024
|
|
2023
|
|
$ Change
|
|
% Change
|
|
Net income attributable
to Equifax
|
|
$
604.1
|
|
$
545.3
|
|
$
58.8
|
|
11 %
|
|
Acquisition-related
amortization expense of certain acquired intangibles
(1)
|
|
261.1
|
|
250.7
|
|
10.4
|
|
4 %
|
|
Accrual for legal and
regulatory matters related to the 2017 cybersecurity incident
(2)
|
|
0.3
|
|
16.8
|
|
(16.5)
|
|
(98) %
|
|
Fair market value
adjustment and gain on sale of equity investments
(3)
|
|
—
|
|
(13.4)
|
|
13.4
|
|
nm
|
|
Pension mark-to-market
fair value adjustment (4)
|
|
11.6
|
|
0.1
|
|
11.5
|
|
nm
|
|
Foreign currency impact
of certain intercompany loans (5)
|
|
0.4
|
|
(1.0)
|
|
1.4
|
|
nm
|
|
Acquisition-related
costs other than acquisition amortization (6)
|
|
68.4
|
|
103.2
|
|
(34.8)
|
|
(34) %
|
|
Realignment of
resources and other costs (7)
|
|
48.0
|
|
34.6
|
|
13.4
|
|
39 %
|
|
Income tax effects of
stock awards that are recognized upon vesting or settlement
(8)
|
|
(8.2)
|
|
(3.4)
|
|
(4.8)
|
|
141 %
|
|
Argentina highly
inflationary foreign currency adjustment (9)
|
|
1.1
|
|
3.8
|
|
(2.7)
|
|
(71) %
|
|
Adjustments to deferred
tax balances (10)
|
|
—
|
|
(27.2)
|
|
27.2
|
|
nm
|
|
Reversal of valuation
allowance for certain deferred tax assets
(11)
|
|
(4.6)
|
|
—
|
|
(4.6)
|
|
nm
|
|
Legal Settlement
(12)
|
|
15.0
|
|
—
|
|
15.0
|
|
nm
|
|
Tax impact of
adjustments (13)
|
|
(87.1)
|
|
(78.0)
|
|
(9.1)
|
|
12 %
|
|
Adjusted net income
attributable to Equifax
|
|
$
910.1
|
|
$
831.5
|
|
$
78.6
|
|
9 %
|
|
Adjusted diluted EPS
attributable to Equifax
|
|
$
7.29
|
|
$
6.71
|
|
$
0.58
|
|
9 %
|
|
Weighted-average shares
used in computing diluted EPS
|
|
124.9
|
|
123.9
|
|
|
|
|
|
|
nm - not
meaningful
|
|
|
(1)
|
During the fourth
quarter of 2024, we recorded acquisition-related amortization
expense of certain acquired intangibles of $64.1 million ($51.0
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 $13.1 million of tax is
comprised of $17.2 million of tax expense, net of $4.1 million of a
cash income tax benefit. During the fourth quarter of 2023, we
recorded acquisition-related amortization expense of certain
acquired intangibles of $65.4 million ($52.5 million, net of tax).
The $12.9 million of tax is comprised of $17.0 million of tax
expense, net of $4.1 million of a cash income tax
benefit.
|
|
|
|
For the year ended
December 31, 2024, we recorded acquisition-related amortization
expense of certain acquired intangibles of $261.1 million
($207.5 million, net of tax). The $53.6 million of tax is
comprised of $70.0 million of tax expense, net of $16.4 million of
a cash income tax benefit. For the year ended December 31, 2023, we
recorded acquisition-related amortization expense of certain
acquired intangibles of $250.7 million
($201.9 million, net of tax). The $48.8 million of
tax is comprised of $65.1 million of tax expense, net of
$16.3 million of a cash income tax benefit. See the Notes to
this reconciliation for additional detail.
|
|
|
|
(2)
|
During the fourth
quarter of 2024, we recorded an accrual for legal and regulatory
matters related to the 2017 cybersecurity incident of $0.1 million.
For the year ended December 31, 2024, we recorded an accrual for
legal and regulatory matters related to the 2017 cybersecurity
incident of $0.3 million ($0.2 million, net of tax). During the
fourth quarter of 2023, we recorded an accrual for legal and
regulatory matters related to the 2017 cybersecurity incident of
$1.9 million. For the year ended December 31, 2023, we recorded an
accrual for legal and regulatory matters related to the 2017
cybersecurity incident of $16.8 million ($16.7 million, net of
tax), primarily driven by our accrual for a penalty associated with
resolution of the investigation of the incident by the Financial
Conduct Authority in the United Kingdom. See the Notes to this
reconciliation for additional detail.
|
|
|
|
(3)
|
For the year ended
December 31, 2023, we recorded a $13.4 million ($8.8 million, net
of tax) gain on the fair market value adjustment of an equity
investment and gain on sale of equity method investments. The
changes in fair value were recorded to the Other Income (Expense),
net line item within the Consolidated Statements of Income. See the
Notes to this reconciliation for additional detail.
|
|
|
|
(4)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded an $11.6 million loss ($8.7 million, net of tax) related
to the mark-to-market fair value adjustment of our pension and
postretirement benefit plans. During the fourth quarter of 2023 and
for the year ended December 31, 2023, we recorded a $0.1 million
loss ($0.1 million, net of tax) related to the mark-to-market fair
value adjustment of our pension and postretirement benefit plans.
See the Notes to this reconciliation for additional
detail.
|
|
|
|
(5)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded a foreign currency loss on certain intercompany loans of
$0.3 million and $0.4 million, respectively. During the fourth
quarter of 2023 and for the year ended December 31, 2023, we
recorded a foreign currency loss of $1.3 million and a foreign
currency gain of $1.0 million, respectively, related to certain
intercompany loans. The impact was recorded to the Other Income
(Expense), net line item within the Consolidated Statements of
Income. See the Notes to this reconciliation for additional
detail.
|
|
|
|
(6)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded $20.0 million ($15.8 million, net of tax) and $68.4
million ($51.8 million, net of tax), respectively, for
acquisition-related costs other than acquisition amortization.
During the fourth quarter of 2023 and for the year ended December
31, 2023, we recorded $27.2 million ($19.7 million, net of tax) and
$103.2 million ($79.5 million, net of tax), respectively, for
acquisition-related costs other than acquisition amortization.
These costs primarily related to integration costs resulting from
recent acquisition activity and were recorded in operating income.
See the Notes to this reconciliation for additional
detail.
|
|
|
|
(7)
|
During the fourth
quarter of 2024, we recorded $6.4 million ($4.6 million, net of
tax) of restructuring charges primarily related to contract
terminations. During the year ended December 31, 2024, we recorded
$48.0 million ($34.1 million, net of tax) of restructuring charges
related to the realignment of resources and other costs. These
restructuring charges predominantly relate to our ongoing efforts
toward completion of our technology transformation in order to
support the Company's strategic objectives. During the fourth
quarter of 2023 and for the year ended December 31, 2023, we
recorded $19.4 million ($13.9 million, net of tax) and $34.6
million ($24.6 million, net of tax), respectively, of restructuring
charges for the realignment of resources and other costs. These
restructuring charges predominantly related to the reduction of
headcount and contract terminations in order to support the
Company's strategic objectives and increase the integration of our
global operations. See the Notes to this reconciliation for
additional detail.
|
|
|
|
(8)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded a tax benefit of $0.6 million and $8.2 million,
respectively, related to the tax effects of deductions for stock
compensation in excess of amounts recorded for compensation costs.
During the fourth quarter of 2023 and for the year ended December
31, 2023, we recorded a tax benefit of $0.6 million and $3.4
million, respectively, related to the tax effects of deductions for
stock compensation in excess of amounts recorded for compensation
costs. See the Notes to this reconciliation for additional
detail.
|
|
|
|
(9)
|
Argentina experienced
multiple periods of increasing inflation rates, devaluation of the
peso, and increasing borrowing rates. As such, Argentina was deemed
a highly inflationary economy by accounting policymakers. For the
fourth quarter of 2024 and the year ended December 31, 2024, we
recorded a foreign currency loss of $0.6 million and $1.1 million,
respectively, related to the impact of remeasuring the peso
denominated monetary assets and liabilities as a result of
Argentina being a highly inflationary economy. For the fourth
quarter of 2023 and the year ended December 31, 2023, we recorded a
foreign currency loss of $3.2 million and $3.8 million,
respectively, 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.
|
|
|
|
(10)
|
During the fourth
quarter of 2023 and the year ended December 31, 2023, we recorded a
tax expense of $1.0 million and a tax benefit of $27.2 million,
respectively, related to the write off of a deferred tax liability
related to our original investment in Boa Vista Serviços as a
result of our purchase of the remaining interest in Boa Vista
Serviços in the third quarter of 2023. See Notes to this
reconciliation for additional detail.
|
|
|
|
(11)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded a full reversal of a valuation allowance for certain
deferred tax assets of $4.6 million that was initially recorded in
2020. See the Notes to this reconciliation for additional
detail.
|
|
|
|
(12)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded a $15.0 million charge for a settlement associated with
the resolution of a matter with the Consumer Financial Protection
Bureau ("CFPB"). See the Notes to this reconciliation for
additional detail.
|
|
|
|
(13)
|
During the fourth
quarter of 2024, we recorded the tax impact of adjustments of $22.0
million comprised of (i) acquisition-related amortization expense
of certain acquired intangibles of $13.1 million ($17.2 million of
tax expense, net of $4.1 million of a cash income tax benefit),
(ii) a tax adjustment of $2.9 million related to the fourth quarter
mark-to-market fair value adjustment of our pension and
postretirement benefit plans, (iii) a tax adjustment of $4.2
million related to acquisition-related costs other than acquisition
amortization, and (iv) a tax adjustment of $1.8 million
related to the realignment of resources and other costs. During the
fourth quarter of 2023, we recorded the tax impact of adjustments
of $25.9 million comprised of (i) acquisition-related amortization
expense of certain acquired intangibles of $12.9 million
($17.0 million of tax expense, net of $4.1 million of a
cash income tax benefit), (ii) a tax adjustment of
$7.5 million related to acquisition-related costs other than
acquisition amortization, and (iii) a tax adjustment of
$5.5 million related to the realignment of resources and other
costs.
|
|
|
|
For the year ended
December 31, 2024, we recorded the tax impact of adjustments of
$87.1 million comprised of (i) acquisition-related amortization
expense of certain acquired intangibles of $53.6 million ($70.0
million of tax expense, net of $16.4 million of a cash income tax
benefit), (ii) a tax adjustment of $0.1 million related to an
accrual for legal and regulatory matters related to the 2017
cybersecurity incident, (iii) a tax adjustment of $2.9 million
related to the fourth quarter mark-to-market fair value adjustment
of our pension and postretirement benefit plans, (iv) a tax
adjustment of $16.6 million related to acquisition-related
costs other than acquisition amortization, and (v) a tax adjustment
of $13.9 million related to the realignment of resources and
other costs. For the year ended December 31, 2023, we recorded the
tax impact of adjustments of $78.0 million comprised of (i)
acquisition-related amortization expense of certain acquired
intangibles of $48.8 million ($65.1 million of tax
expense, net of $16.3 million of a cash income tax benefit),
(ii) a tax adjustment of $0.1 million related to an accrual
for legal and regulatory matters related to the 2017 cybersecurity
incident, (iii) a tax adjustment of $4.6 million related to
the gain on fair market value adjustment and gain on sale of equity
investments, (iv) a tax adjustment of $23.7 million related to
acquisition-related costs other than acquisition amortization, and
(v) a tax adjustment of $10.0 million related to the
realignment of resources and other costs.
|
Reconciliations of Non-GAAP Financial Measures to the
Comparable GAAP Financial Measures (Unaudited)
(Dollars in
millions, except per share amounts)
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, accrual for legal and regulatory matters
related to the 2017 cybersecurity incident, fair market value
adjustment and gain on sale of equity investments, pension
mark-to-market fair value adjustment, foreign currency impact of
certain intercompany loans, acquisition-related costs other than
acquisition amortization, realignment of resources and other costs,
Argentina highly inflationary
foreign currency adjustment, legal settlement and presentation of
adjusted EBITDA margin:
|
|
Three Months
Ended
December
31,
|
|
|
|
|
|
|
(In
millions)
|
|
2024
|
|
2023
|
|
$ Change
|
|
% Change
|
|
|
Revenue
|
|
$
1,419.4
|
|
$
1,326.5
|
|
$
92.9
|
|
7 %
|
|
|
Net income attributable
to Equifax
|
|
$
174.0
|
|
$
132.4
|
|
$
41.6
|
|
31 %
|
|
|
Income taxes
|
|
52.2
|
|
48.3
|
|
3.9
|
|
8 %
|
|
|
Interest expense,
net*
|
|
50.1
|
|
56.4
|
|
(6.3)
|
|
(11) %
|
|
|
Depreciation and
amortization
|
|
171.6
|
|
156.4
|
|
15.2
|
|
10 %
|
|
|
Accrual for legal and
regulatory matters related to 2017 cybersecurity incident
(1)
|
|
0.1
|
|
1.9
|
|
(1.8)
|
|
(95) %
|
|
|
Pension mark-to-market
fair value adjustment (3)
|
|
11.6
|
|
0.1
|
|
11.5
|
|
nm
|
|
|
Foreign currency impact
of certain intercompany loans (4)
|
|
0.3
|
|
1.3
|
|
(1.0)
|
|
(77) %
|
|
|
Acquisition-related
costs other than acquisition amortization (5)
|
|
20.0
|
|
27.2
|
|
(7.2)
|
|
(26) %
|
|
|
Realignment of
resources and other costs (6)
|
|
6.4
|
|
19.4
|
|
(13.0)
|
|
(67) %
|
|
|
Argentina highly
inflationary foreign currency adjustment (7)
|
|
0.6
|
|
3.2
|
|
(2.6)
|
|
(81) %
|
|
|
Legal Settlement
(8)
|
|
15.0
|
|
—
|
|
15.0
|
|
nm
|
|
|
Adjusted EBITDA,
excluding the items listed above
|
|
$
501.9
|
|
$
446.6
|
|
$
55.3
|
|
12 %
|
|
|
Adjusted EBITDA
margin
|
|
35.4 %
|
|
33.7 %
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December
31,
|
|
|
|
|
|
(In
millions)
|
|
2024
|
|
2023
|
|
$ Change
|
|
% Change
|
|
Revenue
|
|
$
5,681.1
|
|
$
5,265.2
|
|
$
415.9
|
|
8 %
|
|
Net income attributable
to Equifax
|
|
$
604.1
|
|
$
545.3
|
|
$
58.8
|
|
11 %
|
|
Income taxes
|
|
203.2
|
|
166.2
|
|
37.0
|
|
22 %
|
|
Interest expense,
net*
|
|
214.2
|
|
227.2
|
|
(13.0)
|
|
(6) %
|
|
Depreciation and
amortization
|
|
669.8
|
|
610.8
|
|
59.0
|
|
10 %
|
|
Accrual for legal and
regulatory matters related to 2017 cybersecurity incident
(1)
|
|
0.3
|
|
16.8
|
|
(16.5)
|
|
(98) %
|
|
Fair market value
adjustment and gain on sale of equity investments
(2)
|
|
—
|
|
(13.4)
|
|
13.4
|
|
nm
|
|
Pension mark-to-market
fair value adjustment (3)
|
|
11.6
|
|
0.1
|
|
11.5
|
|
nm
|
|
Foreign currency impact
of certain intercompany loans (4)
|
|
0.4
|
|
(1.0)
|
|
1.4
|
|
nm
|
|
Acquisition-related
costs other than acquisition amortization (5)
|
|
68.4
|
|
103.2
|
|
(34.8)
|
|
(34) %
|
|
Realignment of
resources and other costs (6)
|
|
48.0
|
|
34.6
|
|
13.4
|
|
39 %
|
|
Argentina highly
inflationary foreign currency adjustment (7)
|
|
1.1
|
|
3.8
|
|
(2.7)
|
|
(71) %
|
|
Legal Settlement
(8)
|
|
15.0
|
|
—
|
|
15.0
|
|
nm
|
|
Adjusted EBITDA,
excluding the items listed above
|
|
$
1,836.1
|
|
$
1,693.6
|
|
$
142.5
|
|
8 %
|
|
Adjusted EBITDA
margin
|
|
32.3 %
|
|
32.2 %
|
|
|
|
|
|
|
|
nm - not
meaningful
|
|
|
*Excludes interest
income of $5.7 million and $3.9 million for the fourth quarter
of 2024 and 2023, respectively. Also, excludes interest income of
$14.9 million and $14.2 million for the years ended
December 31, 2024 and 2023, respectively.
|
|
|
|
(1)
|
During the fourth
quarter of 2024, we recorded an accrual for legal and regulatory
matters related to the 2017 cybersecurity incident of $0.1 million.
For the year ended December 31, 2024, we recorded an accrual for
legal and regulatory matters related to the 2017 cybersecurity
incident of $0.3 million ($0.2 million, net of tax). During the
fourth quarter of 2023, we recorded an accrual for legal and
regulatory matters related to the 2017 cybersecurity incident of
$1.9 million. For the year ended December 31, 2023, we recorded an
accrual for legal and regulatory matters related to the 2017
cybersecurity incident of $16.8 million ($16.7 million, net of
tax), primarily driven by our accrual for a penalty associated with
resolution of the investigation of the incident by the Financial
Conduct Authority in the United Kingdom. See the Notes to this
reconciliation for additional detail.
|
|
|
|
(2)
|
For the year ended
December 31, 2023, we recorded a $13.4 million ($8.8 million, net
of tax) gain on the fair market value adjustment of an equity
investment and gain on sale of equity method investments. The
changes in fair value were recorded to the Other Income (Expense),
net line item within the Consolidated Statements of Income. See the
Notes to this reconciliation for additional detail.
|
|
|
|
(3)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded an $11.6 million loss ($8.7 million, net of tax) related
to the mark-to-market fair value adjustment of our pension and
postretirement benefit plans. During the fourth quarter of 2023 and
for the year ended December 31, 2023, we recorded a $0.1 million
loss ($0.1 million, net of tax) related to the mark-to-market fair
value adjustment of our pension and postretirement benefit plans.
See the Notes to this reconciliation for additional
detail.
|
|
|
|
(4)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded a foreign currency loss on certain intercompany loans of
$0.3 million and $0.4 million, respectively. During the fourth
quarter of 2023 and for the year ended December 31, 2023, we
recorded a foreign currency loss of $1.3 million and a foreign
currency gain of $1.0 million, respectively, related to certain
intercompany loans. The impact was recorded to the Other Income
(Expense), net line item within the Consolidated Statements of
Income. See the Notes to this reconciliation for additional
detail.
|
|
|
|
(5)
|
During the fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded $20.0 million ($15.8 million, net of tax) and $68.4
million ($51.8 million, net of tax), respectively, for
acquisition-related costs other than acquisition amortization.
During the fourth quarter of 2023 and for the year ended December
31, 2023, we recorded $27.2 million ($19.7 million, net of tax) and
$103.2 million ($79.5 million, net of tax), respectively, for
acquisition-related costs other than acquisition amortization.
These costs primarily related to integration costs resulting from
recent acquisition activity and were recorded in operating income.
See the Notes to this reconciliation for additional
detail.
|
|
|
|
(6)
|
During the fourth
quarter of 2024, we recorded $6.4 million ($4.6 million, net of
tax) of restructuring charges primarily related to contract
terminations. During the year ended December 31, 2024, we recorded
$48.0 million ($34.1 million, net of tax) of restructuring charges
related to the realignment of resources and other costs. These
restructuring charges predominantly relate to our ongoing efforts
toward completion of our technology transformation in order to
support the Company's strategic objectives. During the fourth
quarter of 2023 and for the year ended December 31, 2023, we
recorded $19.4 million ($13.9 million, net of tax) and $34.6
million ($24.6 million, net of tax), respectively, of restructuring
charges for the realignment of resources and other costs. These
restructuring charges predominantly related to the reduction of
headcount and contract terminations in order to support the
Company's strategic objectives and increase the integration of our
global operations. See the Notes to this reconciliation for
additional detail.
|
|
|
|
(7)
|
Argentina experienced
multiple periods of increasing inflation rates, devaluation of the
peso, and increasing borrowing rates. As such, Argentina was deemed
a highly inflationary economy by accounting policymakers. For the
fourth quarter of 2024 and the year ended December 31, 2024, we
recorded a foreign currency loss of $0.6 million and $1.1 million,
respectively, related to the impact of remeasuring the peso
denominated monetary assets and liabilities as a result of
Argentina being a highly inflationary economy. For the fourth
quarter of 2023 and the year ended December 31, 2023, we recorded a
foreign currency loss of $3.2 million and $3.8 million,
respectively, 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 fourth
quarter of 2024 and for the year ended December 31, 2024, we
recorded a $15.0 million charge for a settlement associated with
the resolution of a matter with the CFPB. 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, accrual for
legal and regulatory matters related to the 2017 cybersecurity
incident, fair market value adjustment and gain on sale of equity
investments, pension mark-to-market fair value adjustment, foreign
currency impact of certain intercompany loans, acquisition-related
costs other than acquisition amortization, realignment of resources
and other costs, Argentina highly
inflationary foreign currency adjustment, legal settlement and
presentation of adjusted EBITDA margin for each of the
segments:
|
(In
millions)
|
|
Three Months Ended
December 31, 2024
|
|
|
Workforce
Solutions
|
|
U.S. Information
Solutions
|
|
International
|
|
General
Corporate
Expense
|
|
Total
|
|
|
|
|
|
|
Revenue
|
|
$
598.1
|
|
$
472.5
|
|
$
348.8
|
|
—
|
|
$
1,419.4
|
|
Operating
Income
|
|
257.9
|
|
115.1
|
|
60.8
|
|
(145.7)
|
|
288.1
|
|
Depreciation and
Amortization
|
|
44.8
|
|
62.7
|
|
44.6
|
|
19.5
|
|
171.6
|
|
Other expense,
net*
|
|
—
|
|
—
|
|
(0.1)
|
|
(12.3)
|
|
(12.4)
|
|
Noncontrolling
interest
|
|
—
|
|
—
|
|
0.6
|
|
—
|
|
0.6
|
|
Adjustments
(1)
|
|
7.6
|
|
3.0
|
|
7.6
|
|
35.8
|
|
54.0
|
|
Adjusted
EBITDA
|
|
$
310.3
|
|
$
180.8
|
|
$
113.5
|
|
$
(102.7)
|
|
$
501.9
|
|
Operating
Margin
|
|
43.1 %
|
|
24.4 %
|
|
17.4 %
|
|
nm
|
|
20.3 %
|
|
Adjusted EBITDA
Margin
|
|
51.9 %
|
|
38.3 %
|
|
32.5 %
|
|
nm
|
|
35.4 %
|
|
|
(In
millions)
|
|
Twelve Months Ended
December 31, 2024
|
|
|
Workforce
Solutions
|
|
U.S. Information
Solutions
|
|
International
|
|
General
Corporate
Expense
|
|
Total
|
|
|
|
|
|
|
Revenue
|
|
$
2,433.8
|
|
$
1,893.0
|
|
$
1,354.3
|
|
—
|
|
$
5,681.1
|
|
Operating
Income
|
|
1,053.3
|
|
404.4
|
|
181.2
|
|
(596.8)
|
|
1,042.1
|
|
Depreciation and
Amortization
|
|
178.4
|
|
237.3
|
|
176.0
|
|
78.1
|
|
669.8
|
|
Other income (expense),
net*
|
|
—
|
|
0.2
|
|
2.0
|
|
(19.6)
|
|
(17.4)
|
|
Noncontrolling
interest
|
|
—
|
|
—
|
|
(3.2)
|
|
—
|
|
(3.2)
|
|
Adjustments
(1)
|
|
30.0
|
|
11.5
|
|
18.2
|
|
85.1
|
|
144.8
|
|
Adjusted
EBITDA
|
|
$
1,261.7
|
|
$
653.4
|
|
$
374.2
|
|
$
(453.2)
|
|
$
1,836.1
|
|
Operating
Margin
|
|
43.3 %
|
|
21.4 %
|
|
13.4 %
|
|
nm
|
|
18.3 %
|
|
Adjusted EBITDA
Margin
|
|
51.8 %
|
|
34.5 %
|
|
27.6 %
|
|
nm
|
|
32.3 %
|
|
|
*Excludes interest
income of $5.7 million in the fourth quarter of 2024 and $14.9
million for the year ended December 31, 2024.
|
|
|
(In
millions)
|
|
Three Months Ended
December 31, 2023
|
|
|
Workforce
Solutions
|
|
U.S. Information
Solutions
|
|
International
|
|
General
Corporate
Expense
|
|
Total
|
|
|
|
|
|
|
Revenue
|
|
$
559.5
|
|
$
427.7
|
|
$
339.3
|
|
—
|
|
$
1,326.5
|
|
Operating
Income
|
|
234.7
|
|
93.9
|
|
60.6
|
|
(144.1)
|
|
245.1
|
|
Depreciation and
Amortization
|
|
44.4
|
|
52.6
|
|
41.7
|
|
17.7
|
|
156.4
|
|
Other expense,
net*
|
|
(0.1)
|
|
(0.1)
|
|
(3.1)
|
|
(2.6)
|
|
(5.9)
|
|
Noncontrolling
interest
|
|
—
|
|
—
|
|
(2.1)
|
|
—
|
|
(2.1)
|
|
Adjustments
(2)
|
|
7.5
|
|
3.7
|
|
8.7
|
|
33.2
|
|
53.1
|
|
Adjusted
EBITDA
|
|
$
286.5
|
|
$
150.1
|
|
$
105.8
|
|
$
(95.8)
|
|
$
446.6
|
|
Operating
Margin
|
|
41.9 %
|
|
22.0 %
|
|
17.9 %
|
|
nm
|
|
18.5 %
|
|
Adjusted EBITDA
Margin
|
|
51.2 %
|
|
35.1 %
|
|
31.2 %
|
|
nm
|
|
33.7 %
|
|
|
(In
millions)
|
|
Twelve Months Ended
December 31, 2023
|
|
|
Workforce
Solutions
|
|
U.S. Information
Solutions
|
|
International
|
|
General
Corporate
Expense
|
|
Total
|
|
|
|
|
|
|
Revenue
|
|
$
2,315.8
|
|
$
1,720.4
|
|
$
1,229.0
|
|
—
|
|
$
5,265.2
|
|
Operating
Income
|
|
969.3
|
|
365.0
|
|
167.8
|
|
(568.5)
|
|
933.6
|
|
Depreciation and
Amortization
|
|
176.4
|
|
205.8
|
|
147.6
|
|
81.0
|
|
610.8
|
|
Other (expense) income,
net*
|
|
(0.2)
|
|
0.3
|
|
15.7
|
|
(4.3)
|
|
11.5
|
|
Noncontrolling
interest
|
|
—
|
|
—
|
|
(6.4)
|
|
—
|
|
(6.4)
|
|
Adjustments
(2)
|
|
35.5
|
|
22.1
|
|
1.1
|
|
85.4
|
|
144.1
|
|
Adjusted
EBITDA
|
|
$
1,181.0
|
|
$
593.2
|
|
$
325.8
|
|
$
(406.4)
|
|
$
1,693.6
|
|
Operating
Margin
|
|
41.9 %
|
|
21.2 %
|
|
13.7 %
|
|
nm
|
|
17.7 %
|
|
Adjusted EBITDA
Margin
|
|
51.0 %
|
|
34.5 %
|
|
26.5 %
|
|
nm
|
|
32.2 %
|
|
|
*Excludes interest
income $3.9 million in the fourth quarter of 2023 and $14.2 million
for the year ended December 31, 2023.
|
|
|
(1)
|
During the fourth
quarter of 2024, we recorded pre-tax expenses of $0.1 million for
an accrual for legal and regulatory matters related to the 2017
cybersecurity incident, an $11.6 million loss related to
mark-to-market fair value adjustment of our pension and
postretirement benefit plans, $0.3 million foreign currency loss on
certain intercompany loans, $20.0 million for acquisition-related
costs other than acquisition amortization, $6.4 million of
restructuring charges for the realignment of resources and other
costs, a $0.6 million foreign currency loss related to the impact
of remeasuring the peso denominated monetary assets and liabilities
as a result of Argentina being a highly inflationary economy, and a
$15.0 million charge for a settlement associated with the
resolution of a matter with the CFPB.
|
|
|
|
For the year ended
December 31, 2024, we recorded $0.3 million for an accrual for
legal and regulatory matters related to the 2017 cybersecurity
incident, an $11.6 million loss related to mark-to-market fair
value adjustment of our pension and postretirement benefit plans,
$0.4 million foreign currency loss on certain intercompany loans,
$68.4 million for acquisition-related costs other than acquisition
amortization, $48.0 million of restructuring charges for the
realignment of resources and other costs, a foreign currency loss
of $1.1 million related to the impact of remeasuring the peso
denominated monetary assets and liabilities as a result of
Argentina being a highly inflationary economy, and a $15.0 million
charge for a settlement associated with the resolution of a matter
with the CFPB.
|
|
|
|
(2)
|
During the fourth
quarter of 2023, we recorded pre-tax expenses of $1.9 million for
an accrual for legal and regulatory matters related to the 2017
cybersecurity incident, a $0.1 million loss related to the
mark-to-market fair value adjustment of our pension and
postretirement benefit plans, $1.3 million foreign currency loss on
certain intercompany loans, $27.2 million for acquisition-related
costs other than acquisition amortization, $19.4 million of
restructuring charges for the realignment of resources and other
costs, and a $3.2 million foreign currency loss related to the
impact of remeasuring the peso denominated monetary assets and
liabilities as a result of Argentina being a highly inflationary
economy.
|
|
|
|
For the year ended
December 31, 2023, we recorded $16.8 million for an accrual for
legal and regulatory matters related to the 2017 cybersecurity
incident, a $13.4 million gain on the fair market value adjustment
and gain related to the sale of equity investments, a $0.1 million
loss related to the mark-to-market fair value adjustment of our
pension and postretirement benefit plans, $1.0 million foreign
currency gain on certain intercompany loans, $103.2 million for
acquisition-related costs other than acquisition amortization,
$34.6 million of restructuring charges for the realignment of
resources and other costs, and a foreign currency loss of $3.8
million related to the impact of remeasuring the peso denominated
monetary assets and liabilities as a result of Argentina being a
highly inflationary economy.
|
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 - During the
fourth quarter of 2024 and 2023, we recorded acquisition-related
amortization expense of certain acquired intangibles of
$64.1 million ($51.0 million, net of tax) and $65.4 million ($52.5
million, net of tax), respectively. For the years ended
December 31, 2024 and 2023, we
recorded acquisition-related amortization expense of certain
acquired intangibles of $261.1
million ($207.5 million, net
of tax) and $250.7 million
($201.9 million, net of tax),
respectively.
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.
Accrual for legal and regulatory matters related to the 2017
cybersecurity incident - Accrual for legal and regulatory
matters related to the 2017 cybersecurity incident includes legal
fees to respond to subsequent litigation and government
investigations for the periods presented. During the fourth quarter
of 2024 and for the year ended December 31,
2024, we recorded an accrual for legal and regulatory
matters related to the 2017 cybersecurity incident of $0.1 million and $0.3
million ($0.2 million, net of
tax), respectively. During the fourth quarter of 2023 and for the
year ended December 31, 2023, we
recorded an accrual for legal and regulatory matters related to the
2017 cybersecurity incident of $1.9
million and $16.8 million
($16.7 million, net of tax),
respectively. 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.
Fair market value adjustment and gain on sale of equity
investments - For the year ended December 31, 2023, we recorded a $13.4 million ($8.8 million, net of tax) gain related to
adjusting our investment in Brazil
to fair value at the date of the acquisition and gain related to
the sale of an equity method investment. On August 7, 2023, we purchased the remaining
interest of our equity investment in Brazil. The investment in Brazil had a readily determinable fair value
and the carrying value of the investment was adjusted to fair value
as of the close date, resulting in a loss. Management believes
excluding these charges from certain financial results provides
meaningful supplemental information regarding our financial results
for the twelve months ended December 31,
2023, since the non-operating gains or losses are 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.
Pension mark-to-market fair value adjustment - We
utilize a mark-to-market method of accounting for recognizing
actuarial gains and losses and expected return on plan assets for
our defined benefit pension and other postretirement benefit plans.
Under our accounting methodology for recognizing actuarial gains
and losses and expected return on plan assets for our defined
benefit pension and other postretirement benefit plans,
remeasurement of projected benefit obligation and plan assets are
immediately recognized in earnings through net periodic benefit
cost within Other Income (Expense) on the Consolidated Statements
of Income, with pension and postretirement plans to be remeasured
annually in the fourth quarter, or on an interim basis as
triggering events require remeasurement. During the fourth quarter
of 2024 and for the year ended December 31,
2024, we recorded an $11.6
million ($8.7 million,
net of tax) loss related to the mark-to-market fair value
adjustment of our pension and postretirement benefit plans. During
the fourth quarter of 2023 and for the year ended December 31, 2023, we recorded a $0.1 million ($0.1 million, net of tax) loss related to
the mark-to-market fair value adjustment of our pension and
postretirement benefit plans. Management believes excluding these
charges from certain financial results provides meaningful
supplemental information regarding our financial results, since the
non-operating gains and losses are 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 fourth quarter of 2024 and for the year ended
December 31, 2024, we recorded a
foreign currency loss related to certain intercompany loans of
$0.3 million and $0.4 million, respectively. During the fourth
quarter of 2023 and for the year ended December 31, 2023, we recorded a $1.3 million foreign currency loss and a
$1.0 million foreign currency gain,
respectively, related to certain intercompany loans. The impact was
recorded to the Other Income (Expense), net line item within the
Consolidated Statements of Income. 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.
Acquisition-related costs other than acquisition
amortization - During the fourth quarter of 2024 and for
the year ended December 31, 2024, we
recorded $20.0 million
($15.8 million, net of tax) and
$68.4 million ($51.8 million, net of tax), respectively,
for acquisition-related costs other than acquisition amortization.
During the fourth quarter of 2023 and for the year ended
December 31, 2023, we recorded
$27.2 million ($19.7 million, net of tax) and $103.2 million ($79.5 million, net of tax), respectively,
for acquisition-related costs other than acquisition amortization.
These costs primarily related to transaction and integration costs
resulting from recent acquisitions and were recorded in operating
income. Management believes excluding this charge from certain
financial results provides meaningful supplemental information
regarding our financial results, 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.
Charge related to the realignment of resources and other
costs - During the fourth quarter of 2024, we recorded
$6.4 million ($4.6 million, net of tax) of restructuring
charges primarily related to contract terminations. During the year
ended December 31, 2024, we recorded
$48.0 million ($34.1 million, net of tax) of restructuring
charges related to the realignment of resources and other costs.
These restructuring charges predominantly relate to our ongoing
efforts toward completion of our technology transformation in order
to support the Company's strategic objectives. During the fourth
quarter of 2023 and for the year ended December 31, 2023, we recorded $19.4 million ($13.9
million, net of tax) and $34.6
million ($24.6 million, net of
tax), respectively, of restructuring charges for the realignment of
resources and other costs. These restructuring charges
predominantly related to the reduction of headcount and contract
terminations in order to support the Company's strategic objectives
and increase the integration of our global operations. Management
believes excluding this charge from certain financial results
provides meaningful supplemental information regarding our
financial results for the three and twelve months ended
December 31, 2024 and 2023, since the
charges are 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 fourth quarter of 2024
and for the year ended December 31,
2024, we recorded a tax benefit of $0.6 million and $8.2 million, respectively, related to the
tax effects of deductions for stock compensation in excess of
amounts recorded for compensation costs. During the fourth quarter
of 2023 and for the year ended December 31,
2023, we recorded a tax benefit of $0.6 million and $3.4 million, respectively, related to the
tax effects of deductions for stock compensation 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 and twelve months ended December 31, 2024, as compared to the
corresponding periods in 2023, because these amounts are
non-operating and relate 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 experienced multiple periods of
increasing inflation rates, devaluation of the peso, and increasing
borrowing rates. As such, Argentina was deemed a highly inflationary
economy by accounting policymakers. During the fourth quarter of
2024 and for the year ended December 31,
2024, we recorded a $0.6
million and a $1.1 million
foreign currency loss, respectively, 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 fourth quarter of 2023 and
the year ended December 31, 2023, we
recorded a foreign currency loss of $3.2
million and $3.8 million,
respectively. 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.
Adjustments to deferred tax balances - During the
fourth quarter of 2023, we recorded a tax expense of $1.0 million. During the year ended December 31, 2023, we recorded a tax benefit of
$27.2 million related to the write
off of a deferred tax liability related to our original investment
in Boa Vista Serviços as a result of our purchase of the remaining
interest in Boa Vista Serviços in the third quarter of 2023. We
determined the deferred tax balance should no longer be recorded as
a result of our purchase of the remaining interest in Boa Vista
Serviços during the third quarter of 2023. Management believes
excluding this tax effect from certain financial results provides
meaningful supplemental information regarding our financial results
for both periods since this adjustment is not comparable among the
periods. This is consistent with how management reviews and
assesses Equifax's historical performance and is useful when
planning, forecasting and analyzing future periods.
Reversal of a valuation allowance for certain deferred tax
assets - During the fourth quarter of 2024 and for the year
ended December 31, 2024, we recorded
a full reversal of a valuation allowance for certain deferred tax
assets of $4.6 million. The valuation
allowance was initially recorded in the first quarter of 2020 for
deferred tax assets where the benefit was not expected to be
realized. In the fourth quarter of 2024, we determined the benefit
is expected to be realized for the deferred tax assets and
therefore we fully reversed the valuation allowance initially
recorded. The tax effect of the initial valuation allowance
recorded was excluded from financial results in the first quarter
of 2020, and therefore the tax effect of the reversal of the
valuation allowance has been excluded from financial results in the
fourth quarter of 2024. Management believes excluding this tax
effect from financial results provides meaningful supplemental
information regarding our financial results for the three and
twelve months ended December 31, 2024
because this amount is not comparable among the periods. This is
consistent with how management reviews and assesses Equifax's
historical performance and is useful when planning, forecasting and
analyzing future periods.
Legal settlement - During the fourth quarter of 2024 and
for the year ended December 31, 2024, we recorded a
$15.0 million charge for a settlement
associated with the resolution of a matter with the CFPB.
Management believes excluding this charge from certain financial
results provides meaningful supplemental information regarding our
financial results for the three months and the year ended
December 31, 2024, 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.
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
|
Kate Walker
|
|
Investor
Relations
|
Media
Relations
|
|
trevor.burns@equifax.com
|
mediainquiries@equifax.com
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/equifax-delivers-fourth-quarter-2024-revenue-growth-of-7-despite-weak-us-hiring-and-mortgage-markets-302370073.html
SOURCE Equifax Inc.
