Equifax Inc. reported financial results for the third quarter ended September 30, 2007. Revenue increased 25 percent to $492.5 million compared to the prior year period. The core Equifax businesses grew 7 percent while 18 percent is attributable to the acquisition of TALX in May 2007. Operating income grew 7 percent to $129.2 million, and was up 12 percent excluding the net favorable impact of certain litigation matters in the prior year period.

Third quarter diluted earnings per share ("EPS") was 48 cents compared to 61 cents in the prior year period. Prior year EPS was favorably impacted by 10 cents related to litigation matters and the reversal of certain income tax reserves. EPS adjusted to exclude the impact of acquisition related amortization expense and the aforementioned litigation and tax matters increased 5 percent to 58 cents from the prior year period. Adjusted EPS and operating income excluding 2006 favorable litigation-related items are non-GAAP financial measures, which are defined and reconciled to the most closely related GAAP financial measure in the information accompanying this release.

"The diversity and strength of our business units enabled Equifax to deliver strong financial performance for the quarter. Our results were bolstered by double-digit growth from our North America Commercial Solutions, North America Personal Solutions and International businesses," said Richard F. Smith, Equifax Chairman and Chief Executive Officer. "At a time when many of our customers are weathering a tough economic climate, our business model and diversified revenue stream allow us to consistently drive top line growth and profitability."

Third Quarter 2007 Highlights

• Double-digit revenue growth in our North America Commercial Solutions, North America Personal Solutions and International operating segments and a full quarter's results from TALX contributed to a 25 percent increase in revenue in the third quarter of 2007, when compared to the same period in 2006.
• Operating margin was 26.2 percent compared to 30.6 percent in the third quarter of 2006. On a non-GAAP basis, excluding the impact of our TALX acquisition in 2007 and the 2006 litigation-related matters mentioned above, operating margin was 28.2 percent in 2007 compared to 29.3 percent in the third quarter of 2006. The third quarter 2007 operating margin reflects increased costs of litigation and greater investments in marketing and technology when compared to the same period in 2006.
• Net income was $67.9 million, a 14 percent decrease from the third quarter of 2006, which included the favorable net impact of the 2006 litigation-related matters mentioned above and a $9.5 million benefit from the resolution of a tax matter. On a non-GAAP basis excluding the impact of these litigation matters and tax benefit, net income increased 2 percent. Year over year net income growth was negatively impacted by increased intangible amortization expense related to the acquisition of TALX and interest expense on additional debt incurred to finance this acquisition and our subsequent repurchase of common stock.
• As planned, total debt increased to $1.4 billion in the third quarter of 2007 compared to $1.2 billion at June 30, 2007, with the increase resulting primarily from our share repurchase program.
• We repurchased 11.1 million of our common shares for $441.6 million in the third quarter, as part of our previously announced share repurchase programs. From the date of the TALX acquisition through September 30, 2007, we have repurchased $620.9 million of our previously announced goal of repurchasing $700.0 million of our shares by the end of 2007.