Equifax 2008 Annual Report Download - page 21

28FEB200910255904
medium-sized commercial customers declined. Local cur- increased volumes for marketing products. Local currency
rency fluctuation against the U.S. dollar favorably impacted fluctuation against the U.S. dollar favorably impacted reve-
our Latin America revenue growth by $10.2 million, or 7%, nue growth by $6.1 million, or 6%, as revenue grew 6% in
as revenue grew 12% in local currency in 2007. local currency in 2007.
Canada Consumer. For 2008, as compared to 2007, rev- International Operating Margin. Operating margin for
enue growth was driven by higher prices and volume 2008 was relatively flat at 29.6%, when compared to 2007
related to our marketing services and technology products. as operating expenses for the overall International business
Local currency fluctuation against the U.S. dollar favorably were generally managed in line with revenue. The 2007
impacted revenue growth by $1.2 million, or 1%, and reve- increase in operating margin, as compared to 2006, was
nue in local currency grew 3% for 2008, as compared to primarily driven by revenue growth, partially offset by higher
2007. Although revenue increased year over year, revenue production costs and increased salary costs due to addi-
growth during the first nine months of 2008 was partially tional headcount as we invest for international growth. The
offset by weakness in the fourth quarter revenue due to the increase in production costs was impacted by certain ven-
stronger U.S. dollar and deteriorating conditions in the dor price reductions received by our European business
Canadian economy. The 2007 increase in revenue, as during 2006 that did not recur in 2007. We also invested in
compared to 2006, was primarily driven by price and vol- our Canada Consumer business for mainframe and data
ume increases for our consumer risk products, as well as center improvements.
TALX
TALX Twelve Months Ended December 31, Change
2008 vs. 2007 2007 vs. 2006
(Dollars in millions) 2008 2007 2006 $ % $ %
Operating revenue:
The Work Number $ 131.9 $ 72.6 $ — $ 59.3 82% nm nm
Tax and Talent Management 173.2 106.8 — 66.4 62% nm nm
Total operating revenue $ 305.1 $ 179.4 $ — $ 125.7 70% nm nm
% of consolidated revenue 16% 10% nm
Total operating income $ 53.1 $ 29.3 $ — $ 23.8 81% nm nm
Operating margin 17.4% 16.3% nm 1.1 pts nm
nm — not meaningful
The financial results of TALX’s operations are included in 2008, as compared to 2007, as a result of reduced gov-
our Consolidated Financial Statements beginning on ernment hiring activity which impacted our Talent Manage-
May 15, 2007, resulting in a partial period for 2007. This is ment business. This decrease was partially offset by steady
the primary reason for the significant increase in revenue growth in Tax Management Services, driven by increased
for 2008, as compared to 2007. The Work Number reve- unemployment compensation claims activity.
nue for the third and fourth quarters of 2008, as compared TALX acquisition-related amortization expense was
to the same periods in 2007, increased 12 percent due to $54.5 million for 2008, compared to $34.0 million for 2007.
growth in the government and consumer collections sec- Total employment records in The Work Number database
tors. For Tax and Talent Management Services, revenue increased during the year to 188.9 million at December 31,
declined two percent for the third and fourth quarters of 2008, compared to 165.9 million at December 31, 2007.
North America Personal Solutions
North America Personal Solutions Twelve Months Ended December 31, Change
2008 vs. 2007 2007 vs. 2006
(Dollars in millions) 2008 2007 2006 $ % $ %
Total operating revenue $ 162.6 $ 153.5 $ 126.0 $ 9.1 6% $ 27.5 22%
% of consolidated revenue 8% 8% 8%
Total operating income $ 46.3 $ 34.0 $ 13.6 $ 12.3 36% $ 20.4 150%
Operating margin 28.4% 22.1% 10.8% 6.3 pts 11.3 pts
2008 ANNUAL REPORT 19