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19
Equifax 2012 Annual Report
Revenue for 2011 increased, as compared to 2010, due to continued
growth in credit-based pre-screen and portfolio management revenue
as well as strong market penetration of wealth-based consumer
information services.
U.S. Consumer Information Solutions Operating Margin. USCIS
operating margins increased 110 basis points to 37.3% in 2012 due
to the benefits of strong revenue growth in a business with significant
fixed costs. In 2011, improved margins in online credit services and
CFMS resulting from solid revenue growth were offset by lower
margins in mortgage solutions due to less favorable product mix and
by expense investment and increased acquisition-related amortization
associated with our fourth quarter 2010 acquisition of Anakam.
International
International Twelve Months Ended December 31, Change
2012 vs. 2011 2011 vs. 2010
(Dollars in millions) 2012 2011 2010 $% $%
Operating revenue:
Latin America $187.4 $208.8 $231.3 $(21.4) -10% $(22.5) -10%
Europe 169.7 158.7 137.6 11.0 7% 21.1 15%
Canada Consumer 129.1 125.4 113.9 3.7 3% 11.5 10%
Total operating revenue $486.2 $492.9 $482.8 $ (6.7) -1% $ 10.1 2%
% of consolidated revenue 23% 25% 26%
Total operating income $143.8 $132.2 $119.4 $ 11.6 9% $ 12.8 11%
Operating margin 29.6% 26.8% 24.7% 2.8 pts 2.1 pts
International revenue in 2012 decreased 1% compared to the prior
year. While the deconsolidation of Brazil negatively impacted revenue
by $35.4 million in 2012, revenue in our other geographies increased
by 6% in 2012 as compared to 2011. Local currency revenue,
excluding Brazil, increased 9% in 2012 due to growth across our
other geographies. Local currency fluctuations against the U.S. dollar,
excluding Brazil, negatively impacted our International revenue by
$12.3 million, or 3%.
International revenue increased by 2% in 2011 as compared to 2010.
While the deconsolidation of Brazil negatively impacted revenue by
$48.7 in 2011, revenue in our other geographies increased by 15%
as compared to 2010. Local currency revenue, excluding Brazil,
increased 12% due to solid growth in Europe, Canada and other
Latin American countries. Local currency fluctuations against the U.S.
dollar, excluding Brazil, favorably impacted our International revenue
by $12.0 million, or 3%.
Latin America. Revenue decreased by 10% in 2012 as compared to
the prior year period. While the deconsolidation of Brazil negatively
impacted revenue by $35.4 million in 2012, revenue in our other Latin
American countries increased 8% in 2012 as compared to 2011.
Local currency revenue, excluding Brazil, increased by 12% due most
particularly to strong growth in Argentina, Uruguay and Ecuador
slightly offset by a small decline in Chile due to a regulatory change in
allowable uses of credit reports. Local currency fluctuations against
the U.S. dollar, excluding Brazil, negatively impacted revenue by $6.5
million, or 4%.
Revenue decreased by 10% in 2011 as compared to 2010. While the
deconsolidation of Brazil negatively impacted revenue by $48.7 mil-
lion in 2011, revenue in our other Latin American countries increased
18% in 2011 as compared to 2010. Local currency revenue, exclud-
ing Brazil, increased by 17% due to broad-based growth across
other Latin American countries. The favorable impact of changes in
foreign exchange rates, excluding Brazil, added $1.0 million, or 1%,
to revenue in 2011.
Europe. 2012 revenue increased 7% compared to 2011. In local cur-
rency, revenue growth was 10% driven by increased sales primarily in
the personal solutions and analytical services business lines despite
more challenging economic conditions. Local currency fluctuations
against the U.S. dollar negatively impacted revenue by $4.4 million,
or 3%.
Revenue increased 15% in 2011 compared to the same period in
2010 due to increased sales in most product segments and the
impact of a first quarter 2011 acquisition, as well as the favorable
impact of changes in foreign exchange rates. In local currency,
revenue was up 11% in 2011. Local currency fluctuations against the
U.S. dollar favorably impacted revenue by $6.0 million, or 4%.
Canada Consumer. Local currency revenue increased 4% in 2012,
as compared to 2011, primarily due to increased volumes for our
analytical services products. Local currency fluctuations against the
U.S. dollar negatively impacted revenue by $1.4 million, or 1%.