Equifax 2004 Annual Report Download - page 3

B U S I N E S S D E S C R I P T I O N
Equifax, a 106-year-old company and member of the Standard & Poor’s (S&P) 500
®
Index,
enables
and secures global commerce among consumers and businesses. We are a global
leader in turning information into intelligence, serving customers across a wide range of
industries
and markets in 12 countries throughout North America, Latin America and
Europe.
Equifax employs approximately 4,400 people. Our shares trade on the New York
Stock Exchange under the symbol EFX.
INCOME฀FROM฀
CONTINUING฀OPERATIONS*฀
(in millions)
02฀฀฀฀฀฀03฀฀฀฀฀04
CASH฀FLOW฀
FROM฀OPERATIONS
(in millions)
02฀฀฀฀฀฀03฀฀฀฀฀04
$191.7
$203.3
$215.8
$249.6
$293.7
$309.0
* Non-GAAP fi nancial measures; please see page at right
for a reconciliation of GAAP to Non-GAAP information.
Compound
Year Ended December 31 2004 2003 2002 Growth Rate
GAAP
Operating revenue $1,272.8 $1,210.7 $1,095.3 7.8%
Operating income $ 375.8 $ 314.2 $ 352.5 3.3%
Operating margin 30% 26% 32% N/A
Income from continuing operations $ 237.3 $ 180.7 $ 191.7 11.3%
Diluted earnings per share from
continuing operations $ 1.78 $ 1.32 $ 1.38 13.3%
Cash flow from operations $ 309.0 $ 293.7 $ 249.6 11.3%
Stock price per share at December 31 $ 28.10 $ 24.50 $ 23.14 10.2%
Non-GAAP
Operating income $ 378.2 $ 350.0 $ 352.5 3.6%
Operating margin 30% 29% 32% N/A
Income from continuing operations $ 215.8 $ 203.3 $ 191.7 11.6%
Diluted earnings per share from
continuing operations $ 1.62 $1.49 $ 1.38 8.1%
Reconciliation of GAAP to Non-GAAP financial measures (in millions, except per share data) is as follows:
Year Ended December 31 2004 2003 2002
Operating income, GAAP $ 375.8 $ 314.2 $ 352.5
Asset impairment, restructuring and
other related charges 2.4 35.8 –
Operating income, Non-GAAP Operating income, Non-GAAP $ 378.2 $ 350.0 $ 352.5
Income from continuing operations, GAAP $ 237.3 $ 180.7 $ 191.7
Sale of investment in Intersections Inc. (23.0) – –
Asset impairment, restructuring
and other related charges 1.5 22.6 –
Income from continuing operations, Non-GAAP Income from continuing operations, Non-GAAP $ 215.8 $ 203.3 $ 191.7
Diluted earnings per share from
continuing operations, GAAP $ 1.78 $ 1.32 $ 1.38
Sale of investment in Intersections Inc. $ (0.17) – –
Asset impairment, restructuring
and other related charges $ 0.01 $ 0.17 –
Diluted earnings per share from
continuing operations, Non-GAAP continuing operations, Non-GAAP $ 1.62 $ 1.49 $ 1.38
Shares used in computing diluted
earnings per share 133.5 136.7 138.5
E Q U I F A X F I N A N C I A L H I G H L I G H T S
(Dollars in millions, except per share amounts)
2004 2003 2002
Operating revenue $1,272.8 $1,210.7 $1,095.3 7.8%
Operating margin 30% 26% 32% N/A
Operating margin 30% 29% 32% N/A
1.62 $1.49
2004 2003 2002
other related charges 2.4 35.8 –
and other related charges 1.5 22.6
earnings per share 133.5 136.7 138.5
S H A R E H O L D E R I N F O R M A T I O N
Equifax began operations in 1899 and became a publicly
owned corporation in 1965. Equifax common stock is listed
on the New York Stock Exchange under the symbol EFX.
As of December 31, 2004, Equifax had approximately
8,337 shareholders of record.
DIVIDENDS
Cash dividends have been paid by Equifax for 92 consecutive
years. The Board of Directors sets the record and payment
dates for dividends. A dividend of 3 cents per share was
paid in March 2005. Equifax normally pays dividends on
March 15, June 15, September 15 and December 15.
DIVIDENDS PER SHARE
Quarter 2004 2003
First $0.02 $0.02
Second $0.03 $0.02
Third $0.03 $0.02
Fourth $0.03 $0.02
Year $0.11 $0.08
INVESTORS’ SERVICE PLAN
The Investors’ Service Plan provides shareholders and
other investors with a convenient and economical way to
purchase shares of Equifax common stock directly through
the Plan. Current shareholders may purchase additional
shares and non-shareholders may make initial invest-
ments through the Plan Administrator, SunTrust Bank.
Shareholders may reinvest their quarterly dividends and
may make optional cash investments weekly in amounts
up to $10,000 per month. A brochure and enrollment form
are available by calling toll-free [phone].
ANNUAL SHAREHOLDERS’ MEETING
The Equifax annual meeting of shareholders will be held
at 9:30 a.m. on Tuesday, May 17, 2005, in the Cecil B. Day
Chapel at the Carter Center, 453 Freedom Parkway N.E.,
Atlanta, Georgia. A proxy statement and notice of the meet-
ing will be mailed to all shareholders prior to the meeting.
EQUIFAX ON THE INTERNET
A broad range of consumer, business, investor and governance
information is available at www.equifax.com.
INVESTOR RELATIONS
Investor requests for fi nancial information may be directed
by phone to [phone]; in writing to P.O. Box 4081,
Atlanta, Georgia 30302; or by email to [e-mail].
Requests may be faxed to [phone]. Shareholders may
obtain a copy of our 2004 Annual Report on Form 10-K,
without charge, by writing to the Corporate Secretary,
P.O. Box 4081, Atlanta, Georgia 30302, or online from
our website, www.equifax.com.
STOCK PRICES
2004 2003
(in dollars) High Low High Low
1st Quarter $27.18 $23.90 $24.43 $17.84
2nd Quarter $27.37 $23.52 $27.59 $19.51
3rd Quarter $26.70 $22.60 $26.73 $21.71
4th Quarter $28.46 $25.15 $24.86 $22.26
Year $28.46 $22.60 $27.59 $17.84
Designed and produced by Corporate Reports Inc./Atlanta www.corporatereport.com
Equifax, Equifax Decision Power, Equifax ePORT, eIDverifi er, 3-in-1 Score Power and Score Power are all registered trademarks of Equifax Inc.
Equifax Small Business Enterprise, InterConnect, Equifax Credit Watch, Equifax Accel, Equifax Credit Rankings, Risk Navigator, Equifax APPLY and
Bankruptcy Navigator are trademarks of Equifax Inc.
Form #3201-04
NEW YORK STOCK EXCHANGE CORPORATE GOVERNANCE MATTERS
As a listed company with the New York Stock Exchange (“NYSE”), Equifax is subject to certain corporate governance
standards as required by the NYSE and/or the Securities and Exchange Commission (“SEC”). Among other requirements,
Equifax’s CEO, as required by Section 303A.12(a) of the NYSE Listed Company Manual, must certify to the NYSE each
year whether or not he is aware of any violations by the Company of NYSE Corporate Governance listing standards as of
the date of the certifi cation. On June 16, 2004, Equifax’s CEO, Thomas F. Chapman, submitted such a certifi cation to the
NYSE which stated that he was not aware of any violation by Equifax of the NYSE Corporate Governance listing standards.
On March 16, 2005, Equifax fi led its 2004 Form 10-K with the SEC, which included as Exhibits 31.1 and 31.2 the
required CEO and CFO Sarbanes-Oxley Section 302 certifi cations.