Equifax Earnings Per Share Climb 21% In 1997 With Record Fourth Quarter And Year End Results

ATLANTA, January 21, 1998 -- Equifax Inc. today reported outstanding fourth quarter and year end results driven by double digit revenue growth, continued operating leverage and the strong performance of Information Services, Card Services and European operations. For the year, * Revenue of $1.37 billion increased 11.7% versus 1996. * Operating income from continuing operations of $323.9 million increased 21.4% over the prior year (before unusual charges) . * Basic earnings per share from continuing operations (before a non-recurring gain, unusual charge and accounting change in 1997), rose from $1.05 in 1996 to $1.27 in 1997 or 21%. * Fourth quarter highlights which contributed to these results include: * Revenues for the quarter ending December 31, 1997, climbed 10.5% to $367.0 million compared to the prior year period. * Operating income from continuing operations of $94.9 million (before an unusual charge) increased 17.9% over the comparable period. * Basic earnings per share from continuing operations (before an unusual charge and accounting change in 1997) rose from $.33 during the same period last year to $.37 for the fourth quarter of 1997.

"Equifax has just completed one of the best years in our history....our positioning has never been better to capitalize on global opportunities, and our prospects for domestic growth remain strong as well. It has been a year which has seen numerous changes at the company - and we've emerged as a premier provider of knowledge-based solutions and transaction processing on a global basis...helping to change the shape of global commerce," said Equifax President and CEO Thomas F. Chapman. "Equifax has posted earnings per share increases from continuing operations, before unusual items, averaging almost 20% over the last five years, an impressive record."

Chief Financial Officer Dave Post said, "The operating leverage inherent in our business remains evident, as the operating income margin before unusual items set an annual record of 23.7% versus 21.8% in 1996." During the quarter, the Company's stock repurchase program remained active, with 1.5 million shares of stock repurchased for $49.7 million. Throughout 1997, Equifax spent $129.1 million repurchasing 4.1 million shares. Approximately $223 million remained available for repurchase as of December 31, 1997.

During the second quarter of 1997, the Company's National Decision Systems business unit was sold resulting in a pre-tax gain of $42.8 million or $.12 per share. During the fourth quarter, Equifax recorded a $25 million pre-tax expense charge ($.10 per share) in connection with its upcoming purchase of Computer Science Corporation's collections business. This charge reflects valuation differences on this pending acquisition.

The fourth quarter's results were also affected by a nonrecurring after-tax, noncash charge of $3.2 million or $.02 per share related to a new accounting rule established by the Financial Accounting Standards Board Emerging Issues Task Force on November 20, 1997. This rule, EITF Issue No. 97-13, requires certain components of computer system development projects to be expensed as they are incurred.

During the quarter, Equifax incurred Year 2000 compliance expenses of $1.1 million after-tax or about $.01 per share. For the year, Year 2000 compliance expense totaled $2.9 million after-tax or about $.02 per share. Year 2000 expenses in 1998 are estimated to be higher than those incurred in 1997 as a result of some projects which were delayed into 1998 as well as generally higher programming costs in the marketplace.

FOURTH QUARTER SEGMENT RESULTS

For the fourth quarter, Credit Services revenue of $151.9 million increased slightly and operating income of $55.1 million increased 4.4%. Both revenue and operating income were negatively impacted by the second quarter divestiture of National Decision Systems, because the majority of this unit's income is typically recognized during the fourth quarter. Excluding the impact of this divestiture, Credit Services revenue increased 11.8% and operating income increased 20.6%. Credit Reporting Services revenue benefited from strong demand within the banking and telecommunications industries, as well as growth in Credit Marketing Services and Risk Management.

Payment Services revenue of $127.1 million grew 22.5% in the fourth quarter led by strong growth in Card Services and FBS Software. Card Services revenue grew 36.2% as a result of increased business and the acquisition of CSG Card Services. Payment Services operating income of $28.4 million increased 15.6% benefiting from the strong revenue growth in Card Services as well as improvement within FBS Software but was partially offset by the performance of Check Services.

Revenue in International Operations of $85.5 million for the fourth quarter grew 18.9% as a result of growth in European credit operations, and the purchase of the remaining 50% interest of DICOM in Chile. Operating income in International Operations of $20.5 million increased 76.7% as a result of the strong performance of U.K. operations, continuing operating leverage from the integration of U.K. acquisitions, and the DICOM acquisition.

Revenue in General Information Services, which now solely consists of revenue associated with the lottery subcontract, was $2.4 million, and operating income was $2.2 million.

Equifax is a global leader in providing information, processing, consulting and software solutions that facilitate and enhance buyer-seller transactions worldwide. The company serves businesses in the banking, finance, retail, credit card, telecommunications/utilities and health care administration industries. Equifax is changing the shape of global commerce through growth and innovation, driven by technology and people. It operates globally in 17 countries with sales in 40 countries. Founded in 1899 in Atlanta, Equifax (NYSE:EFX) today has 10,000 employees around the world. Revenues for the 12 months ended December 31, 1997, were $1.4 billion. Visit the company's Internet web site at http://www.equifax.com.