Equifax 2007 Annual Report Download - page 3

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EQUIFAX | 2007 ANNUAL REPORT 1
The past year has been one of great ambition and great
accomplishment on the part of a dedicated and determined
Equifax team. We kept our commitments to shareholders
by delivering another record performance in 2007, generat-
ing $1.84 billion in revenue and $2.32 in adjusted earnings
per share. We also introduced innovative new products;
increased penetration of Enabling Technologies and
analytics; diversified our revenue base significantly when
we completed the largest acquisition in Company history;
and invested in new markets.
All of this was accomplished in a culture where
accountability and commitment to performance are
inherent to who we are today and will be tomorrow. I am
very proud of our performance and want to congratulate
all of our employees on a job well done, as well as for
their contributions to helping Equifax inform, enrich and
empower our customers around the world.
A RESILIENT BUSINESS MODEL
AND DIVERSIFIED REVENUE
Over the past 12 months, the Company’s financial results
have reflected the increasing breadth and diversity of
our customer base, value-added solutions, geographic
footprint and business franchise. Today, for example, we
generate less than one-third of our global revenue from
traditional financial institutions – down from 50 percent
a few years ago. Our diverse and resilient business model
helps us perform in challenging economic environments,
such as the one we experienced in the United States
during much of 2007. While growth slowed in our U.S.
Consumer Information Solutions (USCIS) business, our
four other businesses delivered outstanding results.
Below are highlights of our 2007 performance by
business unit:
• U.S. Consumer Information Solutions experienced flat
revenue due to consumer lending pressures and a
weaker economy creating a tough year for many of our
largest customers. U.S. consumer online revenue grew
through increased penetration of analytics and Enabling
Technologies, offset by decreases in mortgage reporting,
credit marketing and direct marketing services.
• Our International business delivered a strong
performance, growing revenue 17 percent and 10 per-
cent in local currency as they broadened their product
line to address increasingly complex business needs.
This business also expanded operating margins across
much of Europe, Latin America and Canada.
• TALX, our newest business unit, achieved revenue
of $179.4 million, and added 23.1 million records
to The Work Number® database, which now totals
166 million consumer employment and income
records. The TALX integration, including revenue
and expense synergies, is exceeding our expectations.
• North America Personal Solutions delivered impressive
results – revenue grew 22 percent and operating mar-
gin was 22 percent – as it shifted its strategy to more
aggressively market subscription-based services. These
subscription-based services now account for 69 percent
of sales, up from 53 percent in 2006.
• North America Commercial Solutions had a strong
year with revenue climbing 37 percent as we expanded
product offerings and continued to add files to our
databases. We also fully integrated Austin-Tetra’s supplier
and customer data management capabilities to offer
enterprise-wide customer and supplier visibility.
Rick Smith
Chairman and Chief Executive Offi cer
To Our Shareholders: