Equifax 2000 Annual Report Download - page 17

Divested Operations
The Company sold its risk management busi-
nesses in the U.S., Canada, and the U.K. on
October 1, 2000, and also sold its vehicle infor-
mation business in the U.K. on December 22,
2000. These information services businesses,
which were divested because they no longer
fit the Company’s ongoing business strategy,
have been classified as Divested Operations
and prior year segment information has been
reclassified to conform with this presentation.
Revenue declined $42.5 million in 2000 and
$22.6 million in 1999. The decline in 2000 rev-
enue is primarily caused by the disposition of
the risk management businesses at the begin-
ning of the fourth quarter.
Other
Other consists solely of a lottery contract,
which expires at the end of May 2002, with the
State of California that was subcontracted to
GTECH Corporation. Revenue and operating
income remained comparable at $9.6 mil-
lion and $8.9 million, respectively, for 2000,
1999 and 1998. Revenue and operating
income will remain comparable until the
contract’s expiration.
Payment Services
Card Solutions
Card Solutions includes card processing opera-
tions in the U.S., U.K., Brazil and Chile and a
card software business principally supporting
the international operations. Over the past three
years, Card Solutions has focused its efforts upon
growth in international markets. In September
1998, Card Solutions expanded its operations
into Latin America by acquiring a 59.3% interest
in UNNISA, a card services business in Brazil.
In June 1999, start-up of the U.K. operation com-
menced. In January 2000, the Company acquired
Procard, Chile’s second-largest credit card
processor. Also in 2000, the Company signed a
five-year agreement with the National Australia
Bank to process cards in Australia, New Zealand,
U.K. and Ireland, starting in the second quarter of
2001. This customer will be serviced from a new
card processing operation being established in
Australia. Card Solutions plans to utilize this
Australian operation to pursue further card pro-
cessing opportunities in the Asian and Pacific
Rim markets.
Card Solutions’ revenue increased 16.7% in
2000 and 24.2% in 1999, as approximately 15%
growth in U.S. revenue in each year was com-
plemented with international revenue growth
of 24.9% in 2000 and 75.8% in 1999.
Revenue in the U.S. of $304.8 million in 1998 has
grown to $351.7 million in 1999 and $402.9 mil-
lion in 2000, driven by year-over-year increases in
card issuing transactions and merchant volumes.
International revenue of $52.2 million in 1998
has grown to $114.5 million in 2000, as a
focused investment in these markets has
grown the number of cards from none at the
beginning of 1998 to approximately 13.3 mil-
lion at year-end 2000. Total international cards
are expected to increase to approximately
16.4 million with commencement of the
Australian operation in 2001. International
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MANAGEMENT’S DISCUSSION & ANALYSIS OF RESULTS
OF OPERATIONS & FINANCIAL CONDITION continued....