Equifax 2004 Annual Report Download - page 29

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M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S
O F F I N A N C I A L C O N D I T I O N A N D R E S U L T S O F O P E R A T I O N S
27
Operating revenue for 2004 increased $62.1 million or 5%
compared to 2003, with growth in Information Services,
Personal Solutions, Europe and Latin America being
slightly offset by a decrease in Marketing Services.
North America operating income for 2004 improved
$64.8 million, or 20%, compared to 2003 due primarily to
cost containment in our Marketing Services businesses as
a result of our December 2003 restructuring. Operating
income in Europe improved $7.1 million, or 31%, due
primarily to revenue growth in our U.K. businesses.
Operating income in Latin America decreased $3.0 mil-
lion, or 15%, driven primarily by increased data costs in
our Brazilian operations.
EQUIFAX฀NORTH฀AMERICA
INFORMATION฀SERVICES
U.S. Consumer and Commercial Services revenues for
2004 increased by $15.3 million, or 3%, when compared
to 2003 due to increased sales for our small business ser-
vices products and increased sales to our customers in the
fi nancial services, utilities and telecommunications indus-
tries slightly offset by decreased sales of mortgage-related
products. In our Consumer Information business, volume
increased 20%. Average price per unit was lower due to a
shift in industry mix of volume from our mortgage-related
products to fi nancial services, utilities and telecommu-
nications. Mortgage Services revenue increased 5% for
the year ended December 31, 2004, when compared to
(in millions)
2004 Profi t Margin
2003 Profi t Margin $ Change % Change
Operating Income (Loss):
North America
Information Services
$299.5 42%
$296.9 44% $ 2.6 1%
Marketing Services
74.4 32%
48.8 18% 25.6 52%
Marketing Services asset
impairment & related charges
(2.4) –1%
(30.6) –12% 28.2 nm
Marketing Services, net
72.0 31%
18.2 6% 53.8 nm
Personal Solutions
17.6 18%
9.2 13% 8.4 91%
389.1 37%
324.3 32% 64.8 20%
Europe
30.0 21%
22.9 20% 7.1 31%
Latin America
17.0 19%
20.0 25% (3.0) –15%
Corporate Expense
(60.3) nm
(53.0) nm (7.3) –14%
$375.8 30%
$314.2 26% $61.6 20%
nm – not meaningful
(in millions)
2004 % of Revenue
2003 % of Revenue $ Change % Change
Equifax North America Revenue:
U.S. Consumer and
Commercial Services
$ 532.6 51%
$ 517.3 51% $15.3 3%
Mortgage Services
75.5 7%
71.6 7% 3.9 5%
Canadian Operations
99.0 10%
90.9 9% 8.1 9%
Total North America
Information Services
707.1 68%
679.8 67% 27.3 4%
Credit Marketing Services
139.5 14%
149.8 15% (10.3) –7%
Direct Marketing Services
96.6 9%
115.9 11% (19.3) –17%
Total Marketing Services
236.1 23%
265.7 26% (29.6) –11%
Personal Solutions
96.1 9%
69.5 7% 26.6 38%
$1,039.3 100%
$1,015.0 100% $24.3 2%