Equifax 2013 Annual Report Download - page 37

69 EQUIFAX 2013 ANNUAL REPORT
2013 2012
Adjusted operating revenue $2,296.7 $2,073.0
Operating income $ 611.2 $ 480.0
Collection of certain reserved 2012 billings (7.2) —
Charge related to resource realignment 9.3 —
Fees associated with the acquisition of CSC credit services —5.0
Pension settlement —38.7
Adjusted operating income — Non-GAAP $ 613.3 $ 523.7
Adjusted operating margin — Non-GAAP 26.7% 25.3%
Adjusted Operating Income and Operating Margin — These non-
GAAP measures exclude the following items:
Collection of certain reserved 2012 billings — During the
fourth quarter of 2013, we recorded revenue of $7.2 million
($4.5 million, net of tax) that relates to the collection of revenue
attributable to certain reserved billings prior to 2013 that did not
originally meet the revenue recognition criteria due to collectability
issues. Management believes excluding this revenue is useful as it
allows investors to evaluate our performance for different periods
on a more comparable basis. Management makes these adjust-
ments to revenue when measuring operating profitability,
evaluating performance trends, setting performance objectives and
calculating our return on invested capital. This is consistent with
how management reviews and assesses Equifax’s historical
performance and is useful when planning, forecasting and analyz-
ing future periods.
Charge related to resource realignment — During the fourth of
2013, we recorded a restructuring charge primarily to realign
internal resources with our strategic opportunities. This charge of
$9.3 million, pretax, ($5.9 million, net of tax) is reflected in selling,
general and administrative expenses in our Consolidated State-
ments of Income. Management believes excluding this charge
from certain financial results provides meaningful supplemental
information regarding our financial results for the three and twelve
months ended December 31, 2013, as compared to the cor-
responding periods in 2012, since a charge of such an amount is
not comparable among the periods. This is consistent with how
our management reviews and assesses Equifax’s historical
performance and is useful when planning, forecasting and analyz-
ing future periods.
Fees associated with the acquisition of CSC credit
services — During the fourth quarter of 2012, the Company
acquired certain business assets and the operations of CSC Credit
Services, Inc., a subsidiary of Computer Sciences Corporation. In
conjunction with this acquisition, the Company incurred
approximately $5.0 million of transaction fees ($3.2 million, net of
tax). Management believes excluding these fees from certain
financial results provides meaningful supplemental information
regarding our financial results for the three and twelve months
ended December 31, 2012, as compared to the corresponding
periods in 2013, since an acquisition and fees of such an amount
are not comparable among the periods. This is consistent with
how our management reviews and assesses Equifax’s historically
performance and is useful when planning, forecasting and analyz-
ing future periods.
Pension settlement — During the fourth quarter of 2012, the
Company offered certain employees a voluntary lump sum pay-
ment option of their pension benefits or a reduced monthly
annuity. The Company recorded a non-cash settlement charge of
$38.7 million ($24.1 million, net of tax). Management believes
excluding this charge from certain financial results provides
meaningful supplemental information regarding our financial results
for the three and twelve months ended December 31, 2012, as
compared to the corresponding periods in 2013, since this charge
is unusual in nature and not comparable among the periods. This
is consistent with how our management reviews and assesses
Equifax’s historically performance and is useful when planning,
forecasting and analyzing future periods.
RECONCILIATIONS RELATED TO NON-GAAP FINANCIAL MEASURES
70 EQUIFAX 2013 ANNUAL REPORT
SHAREHOLDER INFORMATION
Equifax began operations in 1899 and becameapublicly owned
corporation in 1965. Equifax common stock is listed on the New York
Stock Exchange under the symbol EFX.
DIVIDENDS
Cash dividends have been paid by Equifax for 101 consecutive years.
The Board of Directors sets the record and payment date for
dividends.Adividend of 25 cents per share was paid in March 2014.
Equifax normally pays dividends on March 15, June 15,
September 15 and December 15.
DIVIDENDS PER SHARE
11022102r 2013etrauQ
First $0.22 $0.18
Second $0.22 $0.18
Third $0.22 $0.18
Fourth $0.22 $0.18
Year $0.88 $0.72
$0.16
$0.16
$0.16
$0.16
$0.64
INVESTORS’ SERVICE PLAN
The Investors’ Service Plan provides shareholders and other investors
withaconvenient 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
investments through the Plan Administrator, American Stock Transfer
& Trust Company. Shareholders may reinvest their quarterly
dividends and may make optional cash investments weekly in
amounts up to $10,000 per month.Abrochure 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 Friday, May 2, 2014, in the Company’s executive offices at
1550 Peachtree St., N.W. Atlanta, Georgia.Aproxy statement and
notice of the meeting will be distributed to shareholders with this
annual report.
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 financial information may be directed by
phone to [phone]; in writing to P.O. Box 4081, Atlanta,
Georgia 30302; or by e-mail to [email protected]. Requests
may be faxed to [phone]. Shareholders may obtainacopy
of our Annual Report on Form 10-K for the year ended December 31,
2013, 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
2013 2012 2011
Quarter High Low High Low High Low
First $44.60 $37.89
$59.83 $52.79
Second $48.03 $42.50
$63.91 $55.87
Third $49.49 $45.15
$65.65 $58.75
Fourth $55.52 $46.62
$38.88 $34.48
$39.90 $33.44
$35.75 $28.59
$39.26 $29.07
$39.90 $28.59
$69.94 $58.86
Year $55.52 $37.89
$64.83 $56.57