Equifax 2002 Annual Report Download - page 28

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SEGMENT RESULTS
Our segment results for each of the three years in the period ended December 31, 2002, are as follows:
(In millions) 2002 2001 2000
Revenues:
Equifax North America $902.2 $852.4 $ 755.2
Equifax Europe 126.1 141.1 142.9
Equifax Latin America 76.6 106.7 119.5
Other 4.4 9.6 9.6
Revenue before divested operations, Non-GAAP 1,109.3 1,109.8 1,027.2
Divested Operations –29.2 162.0
Revenues, GAAP $1,109.3 $1,139.0 $1,189.2
Operating income:
Equifax North America $361.6 $340.6 $ 295.9
Equifax Europe 12.7 5.8 17.2
Equifax Latin America 20.3 32.0 40.0
Other 4.4 8.9 8.9
General Corporate Expense (47.7) (44.8) (41.7)
Operating income, Non-GAAP 351.3 342.5 320.3
Divested Operations –(2.9) 12.7
Goodwill Amortization –(25.4) (24.4)
Restructuring and Other Charges –(60.4) –
Operating income, GAAP $ 351.3 $253.8 $ 308.6
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
24
EQUIFAX NORTH AMERICA
In 2002, Equifax North America generated 81% of our revenue and
91% of our operating profit before corporate expense. This segment’s
revenue increased 6% in 2002. The Naviant acquisition, included in
Marketing Services, positively impacted revenue growth 3.5% for the
year. We experienced positive momentum in the second half of the
year as revenues grew 6% compared to a 1% decline in the first half,
excluding revenues from the Naviant acquisition.
As shown in the following table, our Equifax North America
segment includes revenues from our:
•U.S. Consumer and Commercial Services, which are comprised
of the Consumer and Commercial Services that we provide in
the U.S., which we previously referred to as U.S. Credit
Information Services.
•Mortgage Services that we provide in the U.S., which we
previously referred to as U.S. Credit Information Services.
•Canadian Operations, which are comprised of the Consumer
Services, Commercial Services and Credit Marketing Services
that we provide in Canada;
•Credit Marketing Services that we provide in the U.S.;
•Direct Marketing Services, are comprised of the direct and email
marketing services that we provide in the U.S. and include the
products and services that we formerly referred to as our
Consumer Information Services, and now include Naviant’s
products and services; and
•Consumer Direct products and services.
Revenue
(In millions) 2002 2001 2000
U.S. Consumer and Commercial
Services $455.4 $449.2 $393.8
Mortgage Services 55.2 44.4 25.7
Canadian Operations 77.4 77.5 68.1
North America Information Services 588.0 571.1 487.6
Credit Marketing Services 164.3 166.5 177.9
Direct Marketing Services 110.5 92.9 81.9
Total Marketing Services 274.8 259.4 259.8
Consumer Direct 39.4 21.9 7.8
$902.2 $852.4 $755.2
YEAR 2002 COMPARED WITH 2001
U.S. Consumer and Commercial Services 2002 revenue growth
was 1% over 2001. Revenue growth in 2002 was challenging due
to tough economic conditions in the U.S. and a record 2001 base
year. Revenues in the second half of 2002 grew 5.5% compared to
a 3% decline in the first half of the year. The momentum was
driven by mortgage refinancing and market share gains, principally
in financial services. Average prices were flat year over year,