Equifax Ends Another Year with Record Setting Results

Fourth Quarter Income Statement

ATLANTA, January 22, 1996 -- 1995 was another record setting year at Equifax, with its announcement today of fourth quarter results. For the quarter, revenue of $419.3 million was up 4.7 percent versus 1994 results (8.8 percent excluding 1995 divestitures). Operating income of $80.1 million increased 25.7 percent versus 1994 results and earnings per share of $.30 increased 25 percent versus 1994 E.P.S. of $.24.

For the year, revenue of $1.623 billion grew 14.1 percent and operating income of $262.9 billion grew 22.8 percent versus 1994 results. Earnings per share of $.98 grew 21 percent versus 1994's E.P.S. of $.81. All earnings per share are adjusted for the two-for-one stock split in December 1995.

Results for the fourth quarter mark the highest revenue, operating income, net income and earnings per share for any quarter in Equifax history.

Equifax's President and new Chief Executive Officer, D. W. McGlaughlin, said, "Fourth quarter results demonstrate the operating leverage inherent in many of our businesses and concluded another record-breaking year. 1995 has been a year in which we've seen continued growth in our higher margin units within Financial Services, a continued turnaround in our Insurance Information Services division and the integration and expansion of business operations in key geographic footholds. In 1996 and beyond, we ex pect to see continued revenue growth across all operating groups, with a focus on international operations as a result of our operating realignment."

On January 3rd, Equifax announced that it had changed its organizational structure such that its three business product groups assumed total responsibility for their respective international activities.

Mr. McGlaughlin continued, "Equifax remained active with its share repurchase program during the fourth quarter and repurchased approximately $61 million in Equifax stock. As of the end of the year, $157 million remained available under the Board's most recent $200 million share repurchase authorization."

Senior Vice President and Chief Financial Officer, Donald U. Hallman, said, "1995 has been a year of integrating acquisitions made in 1994. Despite acquisition integration costs and investment in newer business areas such as Healthcare Information Services, the consolidated operating income margin expanded to 16.2 percent from 15.1 percent in 1994."

During the fourth quarter, Equifax received a $25 million payment from the California State Lottery for certain assets in connection with the reinstatement of the lottery contract with Equifax's subsidiary, High Integrity Systems, Inc. (HISI). Partially offsetting this $25 million payment were expenses associated with the contract. During the fourth quarter, the Company also incurred certain restructuring expenses in the operating groups totaling $19.6 million.

SEGMENT RESULTS

During the fourth quarter, Credit Information Services continued to demonstrate substantial operating leverage. Revenue growth of 10.5% was due to strong demand from the utilities, automotive and mortgage industries, in addition to Credit Marketing Services and Risk Management. The Card Services unit within Payment Services also had a very strong quarter with growth from new customers.

The Insurance Information Services Group continued its turnaround in 1995. The strong performance of Data Services, strategic acquisitions, and a sharp focus on expense management and reduced staffing levels in the labor-intensive product lines contributed to these achievements for the quarter and the year.

1995 was a year of integrating 1994 international acquisitions, specifically Infolink in the U.K. and Canadian Bonded Credits in Canada. The synergies expected from these acquisitions continued to be realized in the fourth quarter.

Excluding the California lottery settlement and restructuring expenses, operating income in General Information Services for the fourth quarter declined versus fourth quarter 1994. Continued investment in a new product, Medical Credentials Verification Service, as well as in other healthcare business units in addition to the third quarter divestitures of two marketing services units caused the decline versus fourth quarter results in 1994. There was also a one-time gain in the fourth quarter 1994 of $4.2 million on the sale of a business.

Equifax Inc. (NYSE:EFX), committed to Global Information Leadership for the Information Age, is the leading provider of information services that help grant credit, authorize and process credit card and check transactions, market products, insure lives and property and control healthcare costs. Established in 1899 in Atlanta, Equifax today employs about 14,000 people throughout North and South America, the United Kingdom, and continental Europe. Revenues for the year ended December 1995 exceeded $1.6 billion.