October 22, 2008

Equifax Q3 Profit Up 6% As Revenue Dips

US consumer credit report agency Equifax has reported a 6% increase in net income to $72.3m for the third quarter 2008, on revenue down 2% at $484.1m.

Operating income increased 17% to $107.2m, while diluted EPS increased 15% to $0.56 compared to $0.48 during the same quarter last year. EBITDA was down 3% at $163m, while cash and cash equivalents at the end of the quarter were $69m, compared to $87m in the same quarter last year.

The company said US consumer information solutions revenue rose 9.5% to $220.6m, while TALX revenue increased 4% to $73.4m. International sales grew 8% to $132.5m, with Europe revenue down 6% at $44.9m, Latin America revenue up 26% at $59.3m, and Canada revenue flat at $28.3m. North America personal solutions revenue rose 6% to $40.9m, and North America commercial solutions revenue was flat at $16.7m.

Richard F Smith, chairman and chief executive at Equifax, said: "I am pleased with the solid earnings performance this quarter which was accomplished in one of the most challenging environments. We continue to aggressively manage our costs, to ensure operating efficiency, while realigning our resources against key strategic opportunities. Our strong financial position enables us to continue investing in product innovation, new markets and geographies to support revenue growth."

Looking ahead to the fourth quarter, the company expects revenue between $453m and $463m, and diluted EPS in the range of $0.59 to $0.63.