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Key Performance Indicators. Management focuses on a variety of
key indicators to monitor operating and financial performance. These
performance indicators include measurements of operating revenue,
change in operating revenue, operating income, operating margin,
net income, diluted earnings per share, cash provided by operating
activities and capital expenditures. Key performance indicators for the
twelve months ended December 31, 2012, 2011 and 2010, include
the following:
Key Performance Indicators
Twelve Months Ended
December 31,
(Dollars in millions,
except per share data) 2012 2011 2010
Operating revenue $2,160.5 $1,959.8 $1,859.5
Operating revenue change 10% 5% 8%
Operating income $ 489.0 $ 471.0 $ 430.0
Operating margin 22.6% 24.0% 23.1%
Net income attributable
to Equifax $ 272.1 $ 232.9 $ 266.7
Diluted earnings per share
from continuing
operations $ 2.22 $ 1.87 $ 1.86
Cash provided by operating
activities $ 496.3 $ 408.7 $ 352.6
Capital expenditures $ 66.0 $ 75.0 $ 99.8
Operational and Financial Highlights.
• On December 28, 2012, as a part of our long-term growth
strategy of expanding our USCIS business, we acquired
CSC Credit Services for $1.0 billion. We financed the acquisition
with available cash, the issuance of $500 million of 3.30% ten-year
senior notes, and commercial paper borrowings under our CP
program. The results of this acquisition are included in our USCIS
segment and are not material for 2012.
• We repurchased 1.9 million shares of our common stock on the
open market for $85.1 million during 2012.
Business Environment and Company Outlook
We expect U.S. mortgage refinancing activity to remain strong
through the first half of 2013 but then trend down in the second half
of 2013. We also expect a continuation of modest economic growth
in most of our served markets. The environment will continue to be
challenging as various countries deal with their particular political, fis-
cal, and economic issues. However, we continue to expect that our
ongoing investments in new product innovation, business execution,
enterprise growth initiatives, technology infrastructure, strategic
acquisitions, and continuous process improvement will enable us, in
a modestly growing economy, to deliver long term average organic
revenue growth ranging between 6% and 8% with additional growth
of 1% to 2% derived from strategic acquisitions. We also expect to
grow earnings per share at a somewhat faster rate than revenue as a
result of both operating and financial leverage. In 2013, we expect
total revenue growth from continuing operations of 10% to 12%, as
the impact of our acquisition of the CSC Credit Services business will
more than outweigh the negative impact of the expected decline in
U.S. mortgage volumes.
13
Equifax 2012 Annual Report