Equifax Reports Solid, Broad-Based Results With Record Revenue in Second Quarter of 2006

Equifax Inc. today reported second quarter of 2006 earnings with record revenue. In the quarter ended June 30, revenue was $387.7 million, a 7 percent increase from the second quarter of 2005. Net income was $69.6 million, an 11 percent increase from the same quarter in 2005. Diluted earnings per share totaled $0.53, a 13 percent increase from the second quarter of 2005. On a non-GAAP basis, excluding the impact of certain litigation matters in the second quarter of 2006 and the incremental impact of adopting Statement of Financial Accounting Standards No. 123®, “Share-Based Payment” (“SFAS 123R”), net income was $66.5 million, a 6 percent increase from the second quarter of 2005, and diluted earnings per share totaled $0.51, an 8 percent increase from the second quarter of 2005.

“Once again, North America, Europe and Latin America provided great momentum in a very challenging environment. I am also pleased with the growth of our commercial business in the U.S.,” said Richard F. Smith, Equifax Chairman and Chief Executive Officer. “Our European operations improved significantly, while Personal Solutions made meaningful progress on its long- term targets for growth and profitability.”

Second Quarter 2006 Highlights

Operating margin was 25 percent in the second quarter of 2006 compared to 29 percent in the second quarter of 2005. On a non-GAAP basis, excluding the impact of certain litigation matters, operating margin was 28 percent in the second quarter of 2006.

Cash provided by operating activities for the second quarter of 2006 was $90.7 million.

Equifax repurchased 1.4 million shares of its common stock on the open market for $52.0 million.

In June 2006, Equifax consummated a settlement of claims against certain former selling shareholders of Naviant, Inc., an acquisition in 2002, which resulted in a $14.1 million non-taxable gain recorded in other income, net and $0.11 impact on diluted earnings per share.

Equifax recognized a loss contingency in operating expenses associated with certain litigation matters related to Personal Solutions, which resulted in an $8.7 million loss, net of tax, and $0.07 impact on diluted earnings per share.

The negative incremental impact during the second quarter of 2006 due to our adoption on January 1, 2006 of SFAS 123R was $2.3 million, net of tax, of additional stock-based compensation expense and $0.02 on diluted earnings per share.

North America

Total revenue was $311.6 million in the second quarter, a 5 percent increase from the second quarter of 2005. Operating margin for North America was 33 percent in the second quarter of 2006 compared to 38 percent in the second quarter of 2005. On a non-GAAP basis, excluding the impact of certain litigation matters, operating margin was 37 percent in the second quarter of 2006.

North America Information Services revenue was $211.1 million, up 3 percent compared to the second quarter of 2005.
Marketing Services revenue was $69.3 million, up 10 percent compared to the second quarter of 2005.
Personal Solutions revenue was $31.2 million, up 7 percent compared to the second quarter of 2005.

Europe

Total revenue was $37.6 million, up 7 percent compared to the second quarter of 2005. In local currency, revenue was up 9 percent when compared to the same period in the prior year. Operating margin was 25 percent, up from 22 percent in the second quarter of 2005.

Latin America

Total revenue rose to $38.5 million, up 26 percent compared to the second quarter of 2005. In local currency, revenue was up 17 percent when compared to the same period in the prior year. Operating margin was 29 percent, up from 26 percent in the second quarter of 2005.