Equifax Earnings Set Second Quarter Record; Earnings Per Share Grow 22%

Second Quarter Income Statement

ATLANTA, July 17, 1996 -- Equifax (NYSE: EFX) today reported record second quarter revenues and earnings for the period ending June 30, 1996.

Revenues for the quarter ending June 30, 1996, climbed 9.4% compared to the prior year period, setting an all-time quarterly record of $445.6 million. Earnings per share climbed 22% from $.23 during the same period last year to $.28 for the second quarter of 1996.

"Second quarter performance continued the trend of strong revenue and earnings growth," said Equifax President and Chief Executive Officer Daniel W. McGlaughlin. "Revenue growth was strong, particularly given the divestitures of three businesses last year. Excluding acquisitions and divestitures, revenue grew 10.8%. We're also pleased to report the Economic Value Added (EVA(TM)) performance measure for our company improved substantially versus the comparable period a year ago."

During the quarter, Equifax recorded a gain of $8.2 million resulting from the sale of its February 1995 investment in Physician Computer Network, Inc. This gain is recorded in other income. In June 1996, Equifax recorded a $10.3 million loss to write off certain intangible assets in its Healthcare division in accordance with FASB Statement No. 121. Operating income, excluding the asset impairment writeoff, was $75.0 million and increased 18.0% over the comparable prior year period.

Chief Financial Officer Donald U. Hallman said, "Equifax's operating income margin, before the asset writeoff, for the second quarter was 16.8% versus 15.6% in 1995 -- the fourteenth consecutive year-over-year quarterly increase in the operating income margin, before unusual items. During the second quarter, Equifax remained active with its share repurchases, with purchases of $47.0 million. Of the $200 million authorization which the Board approved in October 1995, $80 million remains available for share repurchase."

SEGMENT RESULTS

Revenues in Financial Services increased 16% to $284.0 million. Credit Services revenue increased 16.9% primarily due to growth in Credit Reporting Services, Credit Marketing Services and Risk Management. Credit Reporting Services revenue benefited from strong demand within the financial, utilities, banking and automotive industries. Payment Services revenue grew 15% led by strong growth in Card Services and FBS. International Operations revenue grew 15%, led by 24% revenue growth in European operations, largely due to acquisitions.

The Insurance Services Group reported revenue growth of 9.5%. The strong performance of Data Services, CUE U.K. and Osborn Labs contributed to this growth.

The operating loss in General Information Services for the second quarter was $0.3 million before the asset impairment writeoff, compared to a loss of $2.3 million for the second quarter of 1995.

Equifax Inc., committed to Global Information Leadership in 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 health care 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 twelve months ended June 30, 1996, were $1.7 billion.