Equifax Earnings Per Share Climb 22% With Record Third Quarter Results

ATLANTA, October 15, 1997 -- Equifax Inc. today reported outstanding third quarter results driven by double digit revenue growth, continued operating leverage and the strong performance of Credit Reporting Services, Card Services and European operations.

Third quarter highlights which contributed to these results include: * Revenues for the period ending September 30, 1997, climbed 13.7% to $344.1 million compared to the prior year period. * Operating income of $82.7 million increased 22.9% over the comparable period. * Earnings per share from continuing operations rose from $.27 during the same period last year to $.33 for the third quarter of 1997.

"Equifax continues to deliver strong growth momentum once again with these record-setting third quarter results. The company is strategically positioned to continue to capitalize on global opportunities as demand for our products and services remains strong," said

Equifax Vice-Chairman and CEO Daniel W. McGlaughlin. "Equifax has posted earnings per share increases, before unusual items, averaging more than 19% over the last four years, and earnings per share from continuing operations, before unusual items, are up 24% through the first nine months of 1997."

Chief Financial Officer Dave Post said, "The operating leverage inherent in our business remains evident, as the operating income margin set a third quarter record of 24.0% versus 22.2% in 1996." During the quarter the Company's stock repurchase program remained active, with .9 million shares of stock repurchased for $28 million. Approximately $72 million remained available for repurchase as of September 30, 1997.

During the third quarter, Equifax incurred expenses of about $1.4 million related to Year 2000 compliance. Equifax has been addressing the issue to ensure its systems are ready well in advance of the Millennium. For the year, Equifax estimates Year 2000 compliance expenses of $.02 to $.03 per share.

SEGMENT RESULTS

Credit Services revenue of $153.4 million increased 5.5% and operating income of $58.5 million increased 12.2%, primarily due to growth in Credit Reporting Services, Credit Marketing Services and Risk Management, but revenue was negatively impacted by the second quarter divestiture of National Decision Systems. Credit Reporting Services revenue benefited from strong demand within the banking and telecommunications industries. The divestiture of National Decision Systems will have a negative impact on the fourth quarter earnings comparison, because the majority of this unit's income was recognized during the fourth quarter.

Payment Services revenue of $108.6 million grew 28.2% led by strong growth in Card Services. Card Services revenue grew 59.5% as a result of increased business and the acquisition of CSG Card Services. Payment Services operating income of $18.2 million increased 13.5% benefiting from the strong revenue growth in Card Services as well as improvement within Check Services but was partially offset by the timing of software sales with FBS Software.

Revenue in International Operations of $79.7 million grew 35.1% as a result of Canadian and European credit operations, acquisitions in Canada and the purchase of the remaining 50% interest of DICOM in Chile. Operating income in International Operations of $13.1 million increased 22.1% as a result of strong performance of U.K. operations, continuing operating leverage from the integration of European 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 world leader in providing financial information and processing solutions, with global operations in consumer and commercial credit information services, payment services, software, modeling, analytics and consulting and direct-to-consumer services. The company serves many industries including banking, finance, retail, credit card, telecommunications and utilities and health care. Equifax was founded in 1899 in Atlanta and today has 10,000 employees around the world. It operates globally in 17 countries, with sales in 40 countries. Equifax (NYSE: EFX) revenues for the 12 months ended September 30, 1997, exceeded $1.3 billion.