Equifax Ends 2005 With Record Results for Fourth Quarter and Full Year

Equifax Inc., today reported fourth quarter 2005 earnings with record revenue and recorded the strongest year in the company’s 106-year history.

For the quarter, earnings from continuing operations were $63 million, a 14 percent increase from the fourth quarter of 2004. Revenue of $361 million was up 10 percent. Earnings per share (EPS) from continuing operations totaled $0.48, a 14 percent increase from the fourth quarter of 2004. Excluding Fair and Accurate Credit Transactions Act (FACT Act) related revenue and expense in the fourth quarter of 2005, EPS increased to $0.46, up 10 percent, in the fourth quarter of 2005.

For the full year 2005, revenue increased 13 percent to a record $1.4 billion. EPS from continuing operations was $1.86 per share, a 5 percent increase from 2004. Excluding FACT Act-related revenue and expense in 2005 and special items in 2004, EPS increased to $1.79, up 11 percent, in 2005.

“Equifax closed 2005 with significant momentum in most of our businesses around the world,” said Richard F. Smith, Equifax Chairman and Chief Executive Officer. “This is an exciting time for Equifax and its shareholders. Our stock price increased 35 percent in 2005. In 2006, we will continue to build on our momentum and initiate new and innovative ways to grow the company and enhance shareholder value.”

Fourth Quarter 2005 Highlights

• Operating profit margin was 29 percent compared to 30 percent in the fourth quarter 2004.
• Cash provided by operating activities for the fourth quarter of 2005 was $106 million, up 4 percent from the same period in 2004.
• Free cash flow (a non-GAAP measure), which is an alternative measure of liquidity (and is defined as cash provided by operating activities less capital-related expenditures), was $93 million, an increase of 7 percent from $87 million in fourth quarter 2004.
• Equifax repurchased 1.3 million shares of its common stock for $49 million.
• Total debt at December 31, 2005 decreased by $52 million to $556 million from the third quarter of 2005.

North America
Total revenue increased 10 percent to $290 million in the fourth quarter, compared to $264 million in the prior year. FACT Act-related regulatory recovery fee revenue contributed $9 million to North America’s revenue growth. This fee was instituted in the beginning of December 2004 to mitigate compliance costs related to FACT Act. North America Information Services reported revenue of $197 million, up 9 percent. Marketing Services revenue in North America was $67 million, up 9 percent. Personal Solutions increased revenue 15 percent to $27 million.

Operating margin for North America was 38 percent in the fourth quarter of 2005 and 2004.

Europe
Total revenue was $35 million, down 8 percent compared to 2004. Operating margin was 26 percent, up from 24 percent in 2004.

Latin America
Total revenue rose to $36 million, up 42 percent, reflecting strong growth in the region. Operating margin was 25 percent, up from 19 percent in 2004.

Full Year 2005 Highlights

• Operating profit margin was 29 percent compared to 30 percent in 2004.
• Cash provided by operating activities for 2005 was $338 million, up 9 percent.
• Free cash flow (a non-GAAP measure) was $292 million, an increase of 12 percent from $262 million in 2004.
• Equifax repurchased 4.2 million shares of its common stock for $144 million.
• Total debt at December 31, 2005 decreased by $98 million to $556 million from 2004. The remaining borrowing capacity at the end of 2005 under Equifax’s committed financing facilities totaled approximately $460 million.

North America
Total revenue was $1.2 billion, up 13 percent from 2004. FACT Act-related regulatory recovery fee revenue contributed $38 million to North America’s revenue growth. North America Information Services reported revenue of $806 million, up 14 percent. Marketing Services revenue in North America was $254 million, up 7 percent. Personal Solutions increased revenue 19 percent to $115 million.

Operating margin for North America was 38 percent in 2005 compared to 37 percent in 2004.

Europe
Total revenue was $142 million, flat compared to 2004. Operating margin was 24 percent, up from 21 percent in 2004.

Latin America
Total revenue rose to $127 million, up 38 percent. Operating margin was 26 percent, up from 19 percent in 2004.

2006 Outlook
Based on recent business trends, Equifax expects earnings per share to be between $1.90 and $1.99 in 2006. For additional information concerning EPS excluding certain items impacting comparability between 2005 and the 2006 estimate, see Note C of the attached Reconciliation of non-GAAP financial measures to corresponding GAAP measures and the Form 8-K filed with the Securities and Exchange Commission (SEC) on December 13, 2005. Revenue growth is expected to be between 7 percent and 10 percent. Cash provided by operating activities is expected to be in the range of $360 million to $365 million, and capital expenditures are targeted at $60 million to $65 million.