Equifax 2009 Annual Report Download - page 22

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued
International Operating Margin. Operating margin decreased for relatively flat at 29.6%, when compared to 2007 as operating
2009, as compared to 2008, due to the revenue declines discussed expenses for the overall International business were generally main-
above. Operating expenses decreased 1% for 2009, in local cur- tained in line with revenue.
rency, when compared to 2008. Operating margin for 2008 was
TALX
TALX Twelve Months Ended December 31, Change
2009 vs. 2008 2008 vs. 2007
(Dollars in millions) 2009 2008 2007 $ % $%
Operating Revenue:
The Work Number $ 158.2 $ 131.9 $ 72.6 $ 26.3 20% $ 59.3 82%
Tax and Talent Management 188.2 173.2 106.8 15.0 9% 66.4 62%
Total operating revenue $ 346.4 $ 305.1 $ 179.4 $ 41.3 14% $ 125.7 70%
% of consolidated revenue 19% 16% 10%
Total operating income $ 75.4 $ 53.1 $ 29.3 $ 22.3 42% $ 23.8 81%
Operating margin 21.8% 17.4% 16.3% 4.4 pts 1.1 pts
The Work Number. Revenue increased in 2009, as compared to unemployment in the U.S., partially offset by declines in volume
2008, due to the increased volumes of verifications of consumer from our Talent Management Services business during the first half
employment from government service agencies, who use our ser- of the year, as demand was negatively impacted by reduced hiring
vices to approve benefits to consumers under certain government activity by employers, particularly governmental agencies who are
programs, and verifications of employment and income by financial key clients, caused by the weakened economy and budgetary pres-
institutions, who confirm consumer data for use in underwriting sures. The significant increase in revenue for 2008, as compared to
decisions. Our acquisition of Rapid Reporting Verification Company 2007, is primarily due to the partial reporting period for 2007 as
in November 2009 provided approximately $5 million of incremental results were included subsequent to the May 15, 2007 acquisition
revenue. The financial results of TALX’s operations are included in date.
our Consolidated Financial Statements beginning on May 15, 2007,
resulting in a partial period for 2007. This is the primary reason for TALX Operating Margin. Operating margin increased for 2009, as
the significant increase in revenue for 2008, as compared to 2007. compared to 2008, due to continued revenue growth, while operat-
ing expenses grew at a slower rate due to the leveraging of certain
Tax and Talent Management Services. The increase in revenue fixed operational and overhead costs and certain operating process
during 2009, as compared to 2008, resulted from growth in our Tax efficiencies.
Management Services business driven primarily by increased unem-
ployment compensation claims activity due to the high levels of
North America Personal Solutions
North America Personal Solutions Twelve Months Ended December 31, Change
2009 vs. 2008 2008 vs. 2007
(Dollars in millions) 2009 2008 2007 $ % $ %
Total operating revenue $ 149.0 $ 162.6 $ 153.5 $ (13.6) (8)% $ 9.1 6%
% of consolidated revenue 8% 8% 8%
Total operating income $ 34.3 $ 46.3 $ 34.0 $ (12.0) (26)% $ 12.3 36%
Operating margin 23.0% 28.4% 22.1% (5.4) pts 6.3 pts
Revenue declined for 2009, as compared to 2008, primarily due to subscription service revenue, which was up 4% for 2009, as com-
lower transaction sales, as a result of lower levels of new consumer pared to the prior year, driven by higher new sales and higher aver-
credit activity, and lower corporate data breach revenues. These age revenue per subscription, reflecting additional features in the
declines were partially offset by direct to consumer, Equifax-branded Equifax offering. Total subscription customers, including direct to
consumer Equifax-branded services and subscriptions related to
data breach offers, were 1.0 million at December 31, 2009. The
20 EQUIFAX 2009 ANNUAL REPORT
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