Equifax 2010 Annual Report Download - page 19

The increase in net income attributable to Equifax for 2010, as
compared to 2009, was primarily due to increased income from
discontinued operations, driven by a $14.9 million gain, net of tax, on
the sale of DMS recorded in the third quarter of 2010 and a
$12.3 million gain, net of tax, on the sale of the APPRO product line
recorded in the second quarter of 2010. Net income attributed to
Equifax for 2010 also benefited from higher operating income, which
grew generally in line with higher revenue.
The decrease in net income for 2009, as compared to 2008, was a
function of lower operating income in three of our five businesses and
$8.0 million of additional restructuring charges in 2009, partially offset
by increased income from our TALX and North America Commercial
Solutions segments and lower interest expense.
Segment Financial Results
U.S. Consumer Information Solutions
U.S. Consumer Information Solutions Twelve Months Ended December 31, Change
2010 vs. 2009 2009 vs. 2008
(Dollars in millions) 2010 2009 2008 $ % $ %
Operating revenue:
Online Consumer Information Solutions $485.2 $501.4 $566.5 $(16.2) -3% $(65.1) -11%
Mortgage Solutions 113.5 99.5 70.2 14.0 14% 29.3 42%
Consumer Financial Marketing Services 144.3 111.3 132.0 33.0 30% (20.7) -16%
Total operating revenue $743.0 $712.2 $768.7 $ 30.8 4% $(56.5) -7%
% of consolidated revenue 40% 41% 42%
Total operating income $269.8 $259.4 $298.9 $ 10.4 4% $(39.5) -13%
Operating margin 36.3% 36.4% 38.9% -0.1 pts -2.5 pts
U.S. Consumer Information Solutions revenue increased 4% in 2010
as compared to 2009 as growth in Mortgage Solutions along with
growth due to our acquisition of IXI Corporation in the fourth quarter
of 2009 was partially offset by a small decline in online credit report-
ing revenue. The decrease in revenue for 2009, as compared to
2008, was mainly due to continued weakness in the U.S. credit
and retail economy, offset by growth in the Mortgage Solutions
business due to increased activity associated with our settlement
services products and increased mortgage refinancing activity in
2009 and 2010.
OCIS. Revenue for 2010, as compared to 2009, declined primarily
due to a reduction of online credit decision transaction volume of 5%
caused by weakness in the U.S. consumer credit markets while pric-
ing remained relatively flat year over year. Revenue for 2009, as
compared to the prior year, declined primarily due to a reduction of
online credit decision transaction volume as consumer lending activity
was lower than in 2008. The 18% decline in volume for 2009, from
the prior year, was partially offset by a 4% increase in average
revenue per transaction. This increase was attributable to a
disproportionate decline in volume from large national accounts
which are generally billed at a lower average price per transaction.
Mortgage Solutions. Revenue for 2010 has increased, as compared
to the prior year, due to favorable long-term interest rates that have
resulted in higher consumer refinancing activity and increased home
sales activity attributable to U.S. government incentives for housing
purchases which expired on May 31, 2010. The 2009 increase in
revenue, as compared to 2008, is due to increased activity associ-
ated with growth in demand for our settlement services products
which resulted in increased revenue of $16.5 million over 2008,
higher volumes of mortgage credit reporting related to increased
refinance activity and incremental revenue from our acquisition of
certain assets of a small mortgage credit reporting reseller.
Consumer Financial Marketing Services. The increase in revenue
in 2010, as compared to 2009, was primarily due to our acquisition
of IXI Corporation during the fourth quarter of 2009. Revenue
decreased in 2009 as compared to 2008 as banks and other market
participants reduced prescreen marketing volumes and negotiated
lower prices for portfolio management services at a time of significant
uncertainty in the consumer credit market. This decline was partially
offset by approximately $6 million of incremental revenue from our
acquisition of IXI Corporation in October 2009.
U.S. Consumer Information Solutions Operating Margin. Operat-
ing margin remained relatively consistent in 2010, as compared to
2009. The margin impact of amortization expense associated with the
IXI acquisition was offset by expense leveraging resulting from
revenue growth and expense reductions due to certain process
streamlining activities.
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