-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WUg5QBDch2GAzTsVKwl/BQXkag9lpUXod0JrWHh4Z0/TtuOC3VlN7QjI7Ipc8hme 2yQc6zBrkSN5zgcpXrIlxQ== 0000931763-01-501084.txt : 20010723 0000931763-01-501084.hdr.sgml : 20010723 ACCESSION NUMBER: 0000931763-01-501084 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010611 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EQUIFAX INC CENTRAL INDEX KEY: 0000033185 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-CONSUMER CREDIT REPORTING, COLLECTION AGENCIES [7320] IRS NUMBER: 580401110 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-06605 FILM NUMBER: 1685391 BUSINESS ADDRESS: STREET 1: 1600 PEACHTREE ST NW CITY: ATLANTA STATE: GA ZIP: 30302 BUSINESS PHONE: 4048858000 MAIL ADDRESS: STREET 1: 1600 PEACHTREE ST NW CITY: ATLANTA STATE: GA ZIP: 30309 FORMER COMPANY: FORMER CONFORMED NAME: RETAIL CREDIT CO DATE OF NAME CHANGE: 19760222 8-K/A 1 d8ka.txt FORM 8-K/A DATE OF REPORT JUNE 11, 2001 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________ FORM 8-K/A AMENDMENT NO. 1 TO CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 June 11, 2001 ------------------------------------------------ Date of report (Date of earliest event reported) EQUIFAX INC. -------------------------------------------------- (Exact name of Registrant as Specified in Charter) GEORGIA 1-6605 58-0401110 - ----------------- ------------------------ ------------------- (State or Other (Commission File Number) (I.R.S. Employer Jurisdiction of Identification No.) Incorporation) 1550 PEACHTREE STREET, N.W. ATLANTA, GEORGIA 30309 --------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (404) 885-8000 ---------------------------------------------------- (Registrant's telephone number, including area code) The Registrant hereby amends its Current Report on Form 8-K filed on June 13, 2001 (the "Initial Report") to amend Items 7 and 9 and Exhibits 99.1 and 99.2 in their respective entireties for purposes of reflecting the inclusion of an allocation of interest expense from Equifax to Certegy Inc. in the Restated Consolidated Financial Data filed as Exhibit 99.1(d) to the Initial Report, eliminating an adjustment for this allocation in the Unaudited Pro Forma Consolidated Statements of Income filed as Exhibit 99.1(a) to the Initial Report, and eliminating an adjustment for this allocation in the Normalized Consolidated Financial Data filed as Exhibit 99.2 to the Initial Report. This change does not impact the pro forma results presented in Exhibit 99.1(a), or the "normalized" results presented in Exhibit 99.2. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Financial Statements of Businesses Acquired. None. (b) Pro Forma Financial Information. (i) Pro Forma Consolidated Financial Data (attached hereto as Exhibit 99.1). (A) Revised unaudited pro forma consolidated statements of income for the quarter ended March 31, 2001 and the year ended December 31, 2001. (B) Unaudited pro forma consolidated balance sheet as of March 31, 2001. (C) Revised notes to pro forma consolidated financial data (unaudited). (D) Revised unaudited restated historical consolidated statements of income for the years ended December 31, 1998, 1999 and 2000 (by quarter) and the three months ended March 31, 2001. (c) Exhibits. The following exhibits are filed with this Report: Exhibit No. Description - ----------- ------------------------------------------------------------ 99.1 Pro Forma Consolidated Financial Data. 99.1(a) Revised unaudited pro forma consolidated statements of income for the quarter ended March 31, 2001 and the year ended December 31, 2000. 99.1(b) Unaudited pro forma consolidated balance sheet as of March 31, 2001. 99.1(c) Revised notes to pro forma consolidated financial data (unaudited). 99.1(d) Revised unaudited restated historical consolidated statements of income for the years ended December 31, 1998, 1999 and 2000 (by quarter) and the three months ended March 31, 2001. 99.2 Normalized Consolidated Financial Data (filed herewith as a part of Item 9, and pursuant to the instructions to an Item 9 filing, shall not be deemed to be "filed" information for purposes of Section 18 of the Securities Exchange Act of 1934, as amended). 2 Exhibit No. Description - ----------- ------------------------------------------------------------ 99.2(a) Stand-alone Equifax (normalized) (unaudited) consolidated statements of income for the years ended December 31, 1998, 1999, and 2000 (by quarter) and the three months ended March 31, 2001. 99.2(b) Stand-alone Equifax (normalized) (unaudited) segment revenue and operating income or (loss) for the years ended December 31, 1998, 1999, and 2000 (by quarter) and the three months ended March 31, 2001. 99.2(c) Revised reconciliation of Equifax income from continuing operations per common share (diluted) to Equifax (normalized) net income per common share (diluted) for the years ended December 31, 1998, 1999, and 2000 (by quarter) and the three months ended March 31, 2001. 99.2(d) Stand-alone Equifax (normalized) (unaudited) net income, average diluted shares, and earnings per share for the years ended December 31, 2000, 1999, 1998, 1997, and 1996. 99.2(e) Stand-alone Equifax (normalized) (unaudited) revenue, operating profit, and EBITDA for the years ended December 31, 2000, 1999, 1998, 1997, 1995, 1994, 1993, 1992, and 1991. 99.3 Press Release, dated June 12, 2001** _________________ ** Previously filed. Item 9. Regulation FD Disclosure. On June 12, 2001, Equifax issued a press release announcing that its Board of Directors has approved the spin-off of Certegy, a copy of which is attached hereto as Exhibit 99.3 and incorporated in this Item 9 by this reference. The Normalized Consolidated Financial Data attached as Exhibit 99.2 to this Report reflects the continuing business of Equifax as if it had been operating on a stand-alone basis for all periods presented, assumes that the spin-off of Certegy has taken place, and includes certain other adjustments to present "normalized" Equifax Information Services financial results. This stand-alone Equifax financial data has been "normalized" by adjusting the historical GAAP Equifax financial data for the following: (a) Elimination of historical operating results of Certegy for all periods presented. (b) Elimination of historical operating results and the gains or losses from dispositions of the Healthcare businesses sold in the 4th quarter of 1996, NDS sold in the 2nd quarter of 1997, the global risk management businesses sold in October 2000 and the U.K. vehicle information business sold in December 2000 ("Divested Operations"). 3 (c) A decrease in interest expense or an increase in other income as if the proceeds from the sales of the Divested Operations had been received at the beginning of each period presented. (d) Adjustment of income taxes to reflect the effective tax rate of Equifax as a stand-alone business. (e) Elimination of the write-down on the CSC collections valuation loss in the year ended December 31, 1997. Financial Results During the past 10 years, Equifax has tripled revenues to $1.1 billion in 2000 (13 percent compounded growth) while achieving 17 percent compounded growth in operating income. Operating margins continue to be strong averaging 28 percent over the ten-year period. We are vigilant about consistent execution of our strategy, which has established us as a leader in our business. This gives us the ability to increase sales each year through market share gains, introduction of innovative new products and expansion into new markets. A culture of continuous improvement keeps costs low allowing Equifax to sell its core products at attractive prices and generate high margins. Equifax's performance, strong fundamentals and focus on operational effectiveness position it for future growth. Equifax expects sales growth of seven to nine percent in 2001 and long-term growth of 10 percent or higher. Long-term fully diluted earnings per share growth is estimated at 11 to 13 percent with operating margins above 28 percent. *** Statements in this Current Report on Form 8-K/A that relate to Equifax's future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These statements are based on a number of assumptions that are inherently subject to significant uncertainties. Many of the uncertainties are beyond Equifax's control. Factors that could cause actual results to differ from those expressed or implied by forward-looking statements include, but are not limited to customer demand for our services, the availability and reliability of external data sources, changes in government regulation and competition, as further discussed under the heading "Certain Factors Affecting Forward Looking Statements" included in Part 1 in Equifax's annual report on Form 10-K for the year ended December 31, 2000. 4 SIGNATURE Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. EQUIFAX INC. (Registrant) By: /s/ Philip J. Mazzilli ----------------------------------------- Name: Philip J. Mazzilli Title: Executive Vice President and Chief Financial Officer Dated: July 20, 2001 5 EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------------------- 99.1 Pro Forma Consolidated Financial Data. 99.1(a) Revised unaudited pro forma consolidated statements of income for the quarter ended March 31, 2001 and the year ended December 31, 2000. 99.1(b) Unaudited pro forma consolidated balance sheet as of March 31, 2001. 99.1(c) Revised notes to pro forma consolidated financial data (unaudited). 99.1(d) Revised unaudited restated historical consolidated statements of income for the years ended December 31, 1998, 1999 and 2000 (by quarter) and the three months ended March 31, 2001. 99.2 Normalized Consolidated Financial Data (filed herewith as a part of Item 9, and pursuant to the instructions to an Item 9 filing, shall not be deemed to be "filed" information for purposes of Section 18 of the Securities Exchange Act of 1934, as amended). 99.2(a) Stand-alone Equifax (normalized) (unaudited) consolidated statements of income for the years ended December 31, 1998, 1999, and 2000 (by quarter) and the three months ended March 31, 2001. 99.2(b) Stand-alone Equifax (normalized) (unaudited) segment revenue and operating income or (loss) for the years ended December 31, 1998, 1999, and 2000 (by quarter) and the three months ended March 31, 2001. 99.2(c) Revised reconciliation of Equifax income from continuing operations per common share (diluted) to Equifax (normalized) net income per common share (diluted) for the years ended December 31, 1998, 1999, and 2000 (by quarter) and the three months ended March 31, 2001. 99.2(d) Stand-alone Equifax (normalized) (unaudited) net income, average diluted shares, and earnings per share for the years ended December 31, 2000, 1999, 1998, 1997, and 1996. 99.2(e) Stand-alone Equifax (normalized) (unaudited) revenue, operating profit, and EBITDA for the years ended December 31, 2000, 1999, 1998, 1997, 1995, 1994, 1993, 1992, and 1991. 99.3 Press Release, dated June 12, 2001** _________________ ** Previously filed. 6 EX-99.1 2 dex991.txt PRO FORMA CONSOLIDATED FINANCIAL DATA EXHIBIT 99.1 REVISED PRO FORMA CONSOLIDATED FINANCIAL DATA On June 11, 2001, the Board of Directors of Equifax Inc. ("Equifax") formally approved the spin-off of its Payment Services Business ("Certegy") and set the distribution ratio. The spin-off will take place on July 7, 2001 through a special dividend of all outstanding shares of common stock of Certegy, a wholly- owned subsidiary, to Equifax shareholders of record on June 27, 2001. Equifax shareholders will receive one share of Certegy common stock for every two shares of Equifax common stock held and will receive a cash payment in lieu of Certegy fractional shares. On May 25, 2001, Equifax purchased the remaining 40.7% of Unnisa Ltda, a card processing business in Brazil, for approximately $55 million. Unnisa is part of Certegy. The following unaudited pro forma consolidated financial statements are presented as if the acquisition and the spin-off had taken place on March 31, 2001 for the pro forma consolidated balance sheet and January 1, 2000 for the pro forma consolidated statements of income. In the opinion of management, they include all material adjustments necessary to reflect, on a pro forma basis, the impact of material transactions contemplated by the spin-off on Equifax's historical financial information. The adjustments are described in Note 2 of the Notes to the Pro Forma Consolidated Financial Data (Unaudited) and are referenced in the "Pro Forma Adjustments" columns of the financial statements. This pro forma consolidated financial data should be read in conjunction with the financial statements and the notes thereto included in Equifax's Annual Report on Form 10-K for the year ended December 31, 2000 and in Equifax's Quarterly Report on Form 10-Q for the three months ended March 31, 2001. A-1 Exhibit 99.1(a) REVISED PRO FORMA CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) EQUIFAX INC.
Quarter Ended March 31, 2001 ---------------------------------------------------------------- Pro Forma Adjustments: ------------------------------------- (In thousands, except per share amounts) Historical Unnisa Option Other Certegy Pro Forma - --------------------------------------------------- ----------- ------------- ----------- --------- ----------- Operating revenue $285,208 $ - $ - $ - $285,208 Operating expenses 214,936 - (1,114)(2b) - 213,822 -------- -------- -------- -------- -------- Operating income 70,272 - 1,114 - 71,386 Other income, net 1,607 - - - 1,607 Interest expense (12,926) (900)(2a) - - (13,826) -------- -------- -------- -------- -------- Income from continuing operations before income taxes and minority interests 58,953 (900) 1,114 - 59,167 Provision for income taxes 23,904 (371)(2a) 459 (2b) - 23,992 Minority interests in earnings, net of tax (934) - - - (934) -------- -------- -------- -------- -------- Income from continuing operations 34,115 (529) 655 - 34,241 Discontinued operations, net of tax 13,987 - - (13,987)(2c) - -------- -------- -------- -------- -------- Net income $ 48,102 $ (529) $ 655 $(13,987) $ 34,241 ======== ======== ======== ======== ======== Per common share (basic): Income from continuing operations $ 0.25 $ 0.00 $ 0.00 $ - $ 0.25 Discontinued operations, net of tax 0.10 - - (0.10) - -------- -------- -------- -------- -------- Net income $ 0.35 $ 0.00 $ 0.00 $ (0.10) $ 0.25 ======== ======== ======== ======== ======== Shares used in computing basic earnings per share 136,007 136,007 136,007 136,007 136,007 ======== ======== ======== ======== ======== Per common share (diluted): Income from continuing operations $ 0.25 $ 0.00 $ 0.00 $ - $ 0.25 Discontinued operations, net of tax 0.10 - - (0.10) - -------- -------- -------- -------- -------- Net income $ 0.35 $ 0.00 $ 0.00 $ (0.10) $ 0.25 ======== ======== ======== ======== ======== Shares used in computing diluted earnings per share 137,612 137,612 137,612 137,612 137,612 ======== ======== ======== ======== ========
A-2 Exhibit 99.1(a) REVISED PRO FORMA CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) EQUIFAX INC.
Year Ended December 31, 2000 -------------------------------------------------------------------- Pro Forma Adjustments: -------------------------------------- (In thousands, except per share amounts) Historical Unnisa Option Other Certegy Pro Forma - --------------------------------------------------- ----------- ------------- ---------- --------- ----------- Operating revenue $1,189,205 $ - $ - $ - $1,189,205 Operating expenses 880,579 - (3,347)(2b) - 877,232 ---------- -------- -------- -------- ---------- Operating income 308,626 - 3,347 - 311,973 Other income, net 3,667 - - - 3,667 Interest expense (55,846) (3,601)(2a) - - (59,447) ---------- -------- -------- -------- ---------- Income from continuing operations before income taxes and minority interests 256,447 (3,601) 3,347 - 256,193 Provision for income taxes 108,276 (1,564)(2a) 1,453 (2b) - 108,165 Minority interests in earnings, net of tax (7,076) - - - (7,076) ---------- -------- -------- -------- ---------- Income from continuing operations 141,095 (2,037) 1,894 - 140,952 Discontinued operations, net of tax 86,927 - - (86,927)(2c) - ---------- -------- -------- -------- ---------- Net income $ 228,022 $ (2,037) $ 1,894 $(86,927) $ 140,952 ========== ======== ======== ======== ========== Per common share (basic): Income from continuing operations $ 1.05 $ (0.02) $ 0.01 $ - $ 1.05 Discontinued operations, net of tax 0.65 - - (0.65) - ---------- -------- -------- -------- ---------- Net income $ 1.70 $ (0.02) $ 0.01 $ (0.65) $ 1.05 ========== ======== ======== ======== ========== Shares used in computing basic earnings per share 134,400 134,400 134,400 134,400 134,400 ========== ======== ======== ======== ========== Per common share (diluted): Income from continuing operations $ 1.04 $ (0.01) $ 0.01 $ - $ 1.04 Discontinued operations, net of tax 0.64 - - (0.64) - ---------- -------- -------- -------- ---------- Net income $ 1.68 $ (0.01) $ 0.01 $ (0.64) $ 1.04 ========== ======== ======== ======== ========== Shares used in computing diluted earnings per share 136,016 136,016 136,016 136,016 136,016 ========== ======== ======== ======== ==========
A-3
Exhibit 99.1(b) PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED) EQUIFAX INC. March 31, 2001 -------------------------------------------------------------------------------- Pro Forma Adjustments: ------------------------------------------- (In thousands) Historical Unnisa Option Other Dividend Pro Forma - -------------- ------------- ------------- ---------- ---------- ------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 25,387 $ - $ - $ - $ 25,387 Trade accounts receivable, net 226,523 - - - 226,523 Other receivables 67,346 - - - 67,346 Deferred income tax assets 18,278 - - - 18,278 Other current assets 38,065 - - - 38,065 ----------- -------- ---------- ---------- ----------- Total current assets 375,599 - - - 375,599 ----------- -------- ---------- ---------- ----------- PROPERTY AND EQUIPMENT: Land, buildings and improvements 32,183 - - - 32,183 Data processing equipment and furniture 149,135 - - - 149,135 ----------- -------- ---------- ---------- ----------- 181,318 - - - 181,318 Less accumulated depreciation 119,144 - - - 119,144 ----------- -------- ---------- ---------- ----------- 62,174 - - - 62,174 ----------- -------- ---------- ---------- ----------- GOODWILL 538,482 - - - 538,482 ----------- -------- ---------- ---------- ----------- PURCHASED DATA FILES 213,855 - - - 213,855 ----------- -------- ---------- ---------- ----------- OTHER ASSETS 340,412 - (30,000)(2b) - 310,412 ----------- -------- ---------- ---------- ----------- NET ASSETS OF DISCONTINUED OPERATIONS 396,554 55,400(2a) (245,000)(2b) (206,954)(2c) 0 ----------- -------- ---------- ---------- ----------- $ 1,927,076 $ 55,400 $ (275,000) $ (206,954) $ 1,500,522 =========== ======== ========== ========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term debt and current maturities of long-term debt $ 59,880 $ - $ - $ - $ 59,880 Accounts payable 23,333 - - - 23,333 Accrued salaries and bonuses 15,378 - - - 15,378 Income taxes payable 16,735 - - - 16,735 Other current liabilities 133,488 - - - 133,488 ----------- -------- ---------- ---------- ----------- Total current liabilities 248,814 - - - 248,814 ----------- -------- ---------- ---------- ----------- LONG-TERM DEBT, LESS CURRENT MATURITIES 978,967 55,400(2a) (275,000)(2b) - 759,367 ----------- -------- ---------- ---------- ----------- LONG-TERM DEFERRED REVENUE 28,027 - - - 28,027 ----------- -------- ---------- ---------- ----------- DEFERRED INCOME TAX LIABILITIES 80,620 - - - 80,620 ----------- -------- ---------- ---------- ----------- OTHER LONG-TERM LIABILITIES 132,902 - - - 132,902 ----------- -------- ---------- ---------- ----------- SHAREHOLDERS' EQUITY: Common stock 220,495 - - - 220,495 Paid-in capital 342,026 - - - 342,026 Retained earnings 937,339 - - (206,954)(2c) 730,385 Accumulated other comprehensive loss (172,931) - - - (172,931) Treasury stock, at cost (778,901) - - - (778,901) Stock held by employee benefits trusts, at cost, (90,282) - - - (90,282) ----------- -------- ---------- ---------- ----------- Total shareholders' equity 457,746 - - (206,954) 250,792 ----------- -------- ---------- ---------- ----------- $ 1,927,076 $ 55,400 $ (275,000) $ (206,954) $ 1,500,522 =========== ======== ========== ========== =========== A-4
Exhibit 99.1(c) REVISED NOTES TO PRO FORMA CONSOLIDATED FINANCIAL DATA (UNAUDITED) EQUIFAX INC. Note 1. The accompanying unaudited Pro Forma Consolidated Financial Data reflects all adjustments that, in the opinion of management, are necessary to present fairly the Company's pro forma financial position at March 31, 2001, and pro forma results of operations for the three months ended March 31, 2001 and the year ended December 31, 2000. The historical information presented in the pro forma financial data reflects Certegy as a discontinued operation. Note 2. Following are explanations of the pro forma adjustments in the accompanying pro forma consolidated financial data. Balance sheet adjustments assume the transactions noted had occurred on March 31, 2001. Income statement adjustments assume the transactions noted had occurred at the beginning of the period presented on the income statement. (a) To reflect the additional debt and interest assumed by the Company associated with the May 2001 purchase of the remaining 40.7% interest in Unnisa, a credit card processing business in Brazil. The assets related to this acquisition are adjusted to "net assets of discontinued operations" since they are part of the Certegy net assets. (b) To reflect an estimated $30 million transfer of the Company's prepaid pension asset to Certegy and to reflect an increase in pension income due to Certegy no longer benefiting from the over- funded status of the Equifax pension plan. To also reflect Certegy's assumption of $275 million of the Company's long-term debt. (c) To eliminate the historical operations of Certegy, and to record the dividend of the net assets of Certegy to shareholders. A-5 EXHIBIT 99.1(d) REVISED UNAUDITED RESTATED CONSOLIDATED FINANCIAL DATA The following unaudited consolidated statements of income for the years ended December 31, 1998, 1999, 2000 (by quarter), and for the three month period ended March 31, 2001 have been prepared from the historical statements of Equifax Inc. ("Equifax"), but have been restated to show: (a) the historical operations of Certegy as discontinued; and (b) an allocation of interest expense from Equifax to Certegy to reflect: (i) a $275 million assumption of Equifax debt by Certegy as of September 1, 1998 through the most current period; and (ii) a $137 million assumption of Equifax debt by Certegy prior to September 1, 1998. The change in the amount of debt assumed by Certegy is related to the September 1998 acquisition by Unnisa Ltda (Brazil) by Certegy. This financial data should be read in conjunction with the financial statements and the notes thereto included in Equifax's Annual Report on Form 10-K for the year ended December 31, 2000 and in Equifax's Quarterly Report on Form 10-Q for the periods ended March 31, 2000, June 30, 2000, September 30, 2000 and March 31, 2001. A-6 Exhibit 99.1(d) REVISED RESTATED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) EQUIFAX INC. (RESTATED) (In thousands, except per share amounts)
1998 1999 2000 ---------- ---------- -------------------------------- Total Total Year Year Qtr 1 Qtr 2 Qtr 3 ---------- ---------- -------- -------- -------- Revenue............................................... $1,055,809 $1,092,704 $273,824 $305,540 $323,942 Operating Expenses.................................... 793,876 806,406 211,317 234,146 238,229 ---------- ---------- -------- -------- -------- Operating Income...................................... 261,933 286,298 62,507 71,394 85,713 Interest Expense..................................... (30,273) (42,195) (11,673) (15,131) (16,137) Other Income, Net.................................... 4,680 10,761 1,039 1,768 24 ---------- ---------- -------- -------- -------- Income Before Taxes and Minority Interests........... 236,340 254,864 51,873 58,031 69,600 Tax Expense.......................................... 95,616 99,855 21,924 24,553 29,425 Minority Interest Expense............................ (5,498) (7,270) (1,379) (1,484) (1,833) ---------- ---------- -------- -------- -------- Income From Continuing Operations..................... 135,226 147,739 28,570 31,994 38,342 Discontinued Operations, Net of Income Taxes.......... 58,207 68,138 13,657 21,084 25,975 ---------- ---------- -------- -------- -------- Net Income............................................ $ 193,433 $ 215,877 $ 42,227 $ 53,078 $ 64,317 ========== ========== ======== ======== ======== Per Common Share (Basic): Income From Continuing Operations..................... $ 0.96 $ 1.07 $ 0.21 $ 0.24 $ 0.29 Discontinued Operations, Net of Income Taxes.......... 0.41 0.50 0.10 0.16 0.19 ---------- ---------- -------- -------- -------- Net Income.......................................... $ 1.37 $ 1.57 $ 0.32 $ 0.40 $ 0.48 ========== ========== ======== ======== ======== Shares Used in Computing Basic Earnings Per Share..... 141,397 137,457 133,917 134,089 134,355 Per Common Share (Diluted): Income From Continuing Operations..................... $ 0.94 $ 1.06 $ 0.21 $ 0.24 $ 0.28 Discontinued Operations, Net of Income Taxes.......... 0.40 0.49 0.10 0.16 0.19 ---------- ---------- -------- -------- -------- Net Income.......................................... $ 1.34 $ 1.55 $ 0.31 $ 0.39 $ 0.47 ========== ========== ======== ======== ======== Shares Used in Computing Diluted Earnings Per Share... 144,403 139,603 135,150 135,777 135,796
2000 2001 ----------------------- -------- Total Qtr 4 Year Qtr 1 --------- ---------- -------- Revenue............................................... $ 285,899 $1,189,205 $285,208 Operating Expenses.................................... 196,887 880,579 214,936 --------- ---------- -------- Operating Income...................................... 89,012 308,626 70,272 Interest Expense..................................... (12,905) (55,846) (12,926) Other Income, Net.................................... 836 3,667 1,607 --------- ---------- -------- Income Before Taxes and Minority Interests........... 76,943 256,447 58,953 Tax Expense.......................................... 32,374 108,276 23,904 Minority Interest Expense............................ (2,380) (7,076) (934) --------- ---------- -------- Income From Continuing Operations..................... 42,189 141,095 34,115 Discontinued Operations, Net of Income Taxes.......... 26,211 86,927 13,987 --------- ---------- -------- Net Income............................................ $ 68,400 $ 228,022 $ 48,102 ========= ========== ======== Per Common Share (Basic): Income From Continuing Operations..................... $ 0.31 $ 1.05 $ 0.25 Discontinued Operations, Net of Income Taxes.......... 0.19 0.65 0.10 --------- ---------- -------- Net Income.......................................... $ 0.51 $ 1.70 $ 0.35 ========= ========== ======== Shares Used in Computing Basic Earnings Per Share..... 135,239 134,400 136,007 Per Common Share (Diluted): Income From Continuing Operations..................... $ 0.31 $ 1.04 $ 0.25 Discontinued Operations, Net of Income Taxes.......... 0.19 0.64 0.10 --------- ---------- -------- Net Income.......................................... $ 0.50 $ 1.68 $ 0.35 ========= ========== ======== Shares Used in Computing Diluted Earnings Per Share... 137,280 136,016 137,612
NOTE: The effective income tax rates (including minority interest expense) for continuing operations were 41.4%, 40.3% and 43.4% in 1998, 1999 and 2000, respectively. The increase in 2000 was attributable to non-deductible goodwill associated with the divestiture of the Company's Risk Management businesses. A-7 EX-99.2 3 dex992.txt NORMALIZED CONSOLIDATED FINANCIAL DATA Exhibit 99.2 NORMALIZED CONSOLIDATED FINANCIAL DATA The following unaudited consolidated statements of income for the years ended December 31, 1998, 1999, and 2000 (by quarter), and for the three months ended March 31, 2001 have been prepared from the historical statements of Equifax, but have been normalized to exclude the results of Certegy and divested operations. They have also been normalized with certain other adjustments including adjusting interest and other income assuming proceeds from divestitures were received at the beginning of the period. See item 9 for a more detailed discussion of these adjustments. B-1
Exhibit 99.2(a) CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) STAND-ALONE EQUIFAX INC. (NORMALIZED) (In thousands, except per share amounts) 1998 1999 2000 2001 -------- -------- ------------------------------------------------------ -------- Total Total Total Year Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1 -------- -------- ------------------------------------------------------ -------- Revenue.......................... $857,269 $917,011 $230,932 $262,707 $281,213 $281,057 $1,055,909 $285,208 Operating Expenses............... 618,098 649,627 173,173 195,871 200,688 191,359 761,091 214,936 -------- -------- -------- -------- -------- -------- ---------- -------- Operating Income................. 239,171 267,384 57,759 66,836 80,525 89,698 294,818 70,272 Interest Expense............... (20,991) (32,921) (9,355) (12,812) (13,818) (12,277) (48,262) (12,926) Other Income................... 9,553 11,006 2,112 2,833 2,713 3,440 11,098 1,607 -------- -------- -------- -------- -------- -------- ---------- -------- Income Before Taxes and Minority Interests............ 227,733 245,469 50,516 56,857 69,420 80,861 257,654 58,953 Tax Expense.................... 91,550 98,138 20,245 22,813 27,846 32,334 103,238 23,904 Minority Interest Expense...... (5,498) (7,270) (1,379) (1,484) (1,833) (2,380) (7,076) (934) -------- -------- -------- -------- -------- -------- ---------- -------- Net Income....................... $130,685 $140,061 $ 28,892 $ 32,560 $ 39,741 $ 46,147 $ 147,340 $ 34,115 ======== ======== ======== ======== ======== ======== ========== ======== Average Diluted Shares........... 144,403 139,603 135,150 135,777 135,796 137,280 136,016 137,612 -------- -------- -------- -------- -------- -------- ---------- -------- Diluted EPS...................... $0.91 $1.00 $0.21 $0.24 $0.29 $0.34 $1.08 $0.25 ======== ======== ======== ======== ======== ======== ========== ======== B-2
Exhibit 99.2(b) SEGMENT REVENUE AND OPERATING INCOME (UNAUDITED) STAND-ALONE EQUIFAX INC. (NORMALIZED) (In thousands) 1998 1999 2000 2001 -------- -------- ------------------------------------------------------- ---------- Total Total Total Year Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1 -------- -------- -------- -------- -------- -------- ----------- ---------- Revenue: North American Information Services $616,709 $633,126 $163,594 $170,469 $170,534 $168,766 $ 673,363 $181,925 Consumer Information Services - - - 24,314 42,918 43,300 110,532 37,908 Equifax Europe 127,001 148,711 35,986 35,819 34,637 36,416 142,858 35,784 Equifax Latin America 103,923 125,538 28,943 29,696 30,715 30,166 119,520 27,182 Other Information Services 9,636 9,636 2,409 2,409 2,409 2,409 9,636 2,409 -------- -------- -------- -------- -------- -------- ---------- -------- $857,269 $917,011 $230,932 $262,707 $281,213 $281,057 $1,055,909 $285,208 ======== ======== ======== ======== ======== ======== ========== ======== Operating Income: North America Information Services $248,898 $261,025 $ 60,050 $ 70,565 $ 71,736 $ 72,174 $ 274,525 $ 72,169 Consumer Information Services - - - (1,973) 3,298 6,577 7,902 3,724 Equifax Europe (7,043) 4,739 969 2,732 3,227 6,808 13,736 (404) Equifax Latin America 26,121 28,759 6,014 6,987 9,637 8,873 31,511 5,336 Other Information Services 8,866 8,868 2,217 2,217 2,217 2,217 8,868 2,217 -------- -------- -------- -------- -------- -------- ---------- -------- 276,842 303,391 69,250 80,528 90,115 96,649 336,542 83,042 General Corporate (37,671) (36,007) (11,491) (13,692) (9,590) (6,951) (41,724) (12,770) -------- -------- -------- -------- -------- -------- ---------- -------- $239,171 $267,384 $ 57,759 $ 66,836 $ 80,525 $ 89,698 $ 294,818 $ 70,272 ======== ======== ======== ======== ======== ======== ========== ======== B-3
Exhibit 99.2(c) REVISED RECONCILIATION OF EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO EARNINGS PER SHARE FROM STAND-ALONE EQUIFAX INC. (NORMALIZED) (UNAUDITED)
1998 1999 2000 2001 -------- -------- ------------------------------------------------------- ---------- Total Total Total Year Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1 -------- -------- -------- -------- -------- -------- -------- ---------- EPS, Continuing operations.......... $ 0.94 $ 1.06 $ 0.21 $ 0.24 $ 0.28 $ 0.31 $ 1.04 $ 0.25 Exclude income from divested operations, net of reduced interest expense and other income from proceeds.............. (0.03) (0.05) (0.01) (0.01) - 0.02 - - Income taxes, Continuing operations rate vs normalized rate........... - (0.01) 0.01 0.01 0.01 0.01 0.04 - ------- ------- ------- ------- ------- ------- ------- ------- EPS, Normalized..................... $ 0.91 $ 1.00 $ 0.21 $ 0.24 $ 0.29 $ 0.34 $ 1.08 $ 0.25 ======= ======= ======= ======= ======= ======= ======= ======= Average Diluted Shares (in thousands) 144,403 139,603 135,150 135,777 135,796 137,280 136,016 137,612
B-4 Exhibit 99.2(d) NET INCOME, AVERAGE DILUTED SHARES, AND DILUTED EARNINGS PER SHARE (UNAUDITED) STAND-ALONE EQUIFAX INC. (NORMALIZED) (In thousands, except per share amounts) Avg Diluted Diluted Net Income Shares EPS ---------- ----------- ------- 2000 $147,340 136,016 $1.08 1999 140,061 139,603 1.00 1998 130,685 144,403 0.91 1997 134,435 147,818 0.91 1996 115,625 149,207 0.77 B-5 Exhibit 99.2(e) REVENUE, OPERATING INCOME AND EBITDA (UNAUDITED) STAND-ALONE EQUIFAX INC. (NORMALIZED) (In thousands) Operating Revenue Income EBITDA ------- --------- ------ 2000 $1,055,909 $294,818 $393,263 1999 917,011 267,384 347,217 1998 857,269 239,171 305,034 1997 703,016 218,156 269,095 1996 609,664 180,872 227,471 1995 514,566 155,732 189,141 1994 448,720 125,841 156,523 1993 421,878 109,532 141,759 1992 386,681 87,089 120,453 1991 346,575 73,229 106,648 B-6 -----END PRIVACY-ENHANCED MESSAGE-----