Equifax Delivers Record Revenue and Eighth Consecutive Quarter of Double-Digit Growth
Equifax (NYSE: EFX) reported record fourth-quarter 2021 revenue of $1.3 billion, a 12% increase year-over-year, with Workforce Solutions revenue up 29%. Full-year revenue reached $4.9 billion, marking a 19% increase. Diluted EPS for Q4 was $0.99, up from $0.61 in Q4 2020. The company anticipates 2022 revenue guidance of $5.25 to $5.35 billion, despite a projected 21.5% decline in the U.S. mortgage market. Adjusted EPS for 2021 was $7.64, up 10% from 2020. Equifax is optimistic about future growth, driven by new product innovation and acquisitions.
- Record Q4 2021 revenue of $1.3 billion, up 12% year-over-year.
- Workforce Solutions revenue grew 29%, contributing significantly to overall growth.
- Full-year 2021 revenue increased 19% to $4.9 billion.
- Diluted EPS for Q4 was $0.99, up from $0.61 in Q4 2020.
- Company expects 2022 revenue growth despite anticipated mortgage market decline.
- U.S. mortgage market projected to decline by 21.5%, impacting overall revenue growth.
- Adjusted EPS for Q4 2021 decreased by 8% compared to the previous year.
- Operating margin for Workforce Solutions decreased from 48.7% to 40.5% year-over-year.
ATLANTA, Feb. 9, 2022 /PRNewswire/ -- Equifax Inc. (NYSE: EFX) today announced financial results for the quarter and full year ended December 31, 2021.
- Record fourth quarter 2021 revenue of
$1.3 billion , up12% - Workforce Solutions revenue growth of
29% ; eleven consecutive quarters of double-digit revenue growth - Strong new product innovation leveraging new EFX Cloud
- Closed in February bolt-on acquisition of Efficient Hire to enhance differentiated data and strengthen Workforce Solutions
"We delivered a strong 2021 with our eighth consecutive quarter of double-digit revenue growth. Our fourth quarter revenue of
"Our EFX2023 growth strategy driving accelerated New Product Innovation leveraging the EFX Cloud, continued strong growth of Workforce Solutions, and further expanding our differentiated data will drive revenue and margin growth in 2022 and beyond by delivering differentiated solutions that 'Only Equifax' can provide. We are reconfirming our prior framework with full-year 2022 guidance reflecting our expectation of performance at the midpoint of revenue in a range of
Financial Results Summary
The Company reported revenue of
Fourth quarter 2021 diluted EPS attributable to Equifax was
Net income attributable to Equifax of
For the full year 2021, revenue was
As further discussed in the attached Common Questions and Answers, we changed our operating segments in the fourth quarter of 2021 and integrated our Global Consumer Solutions business into our U.S. Information Solutions, Workforce Solutions and International operating segments. The change in operating segments has been applied retrospectively for the periods presented in this earnings release.
Workforce Solutions fourth quarter results
- Total revenue was
$531.6 million in the fourth quarter of 2021, up 29 percent from the fourth quarter of 2020. Operating margin for Workforce Solutions was 40.5 percent in the fourth quarter of 2021 compared to 48.7 percent in the fourth quarter of 2020. Adjusted EBITDA margin for Workforce Solutions was 48.4 percent in the fourth quarter of 2021, compared to 55.8 percent in the fourth quarter of 2020. - Verification Services revenue was
$426.6 million , up 29 percent when compared to the fourth quarter of 2020. - Employer Services revenue was
$105.0 million , up 28 percent when compared to the fourth quarter of 2020.
USIS fourth quarter results
- Total revenue was
$434.0 million in the fourth quarter of 2021, flat compared to the fourth quarter of 2020. Operating margin for USIS was 30.5 percent in the fourth quarter of 2021, compared to 27.7 percent in the fourth quarter of 2020. Adjusted EBITDA margin for USIS was 39.4 percent in the fourth quarter of 2021, compared to 41.6 percent in the fourth quarter of 2020. - Online Information Solutions revenue was
$313.9 million , flat when compared to the fourth quarter of 2020. - Mortgage Solutions revenue was
$40.7 million , down 19 percent when compared to the fourth quarter of 2020. - Financial Marketing Services revenue was
$79.4 million , up 14 percent when compared to the fourth quarter of 2020.
International fourth quarter results
- Total revenue was
$287.6 million in the fourth quarter of 2021, up 6 percent from the fourth quarter of 2020 on both a reported and local currency basis. Operating margin for International was 16.1 percent in the fourth quarter of 2021, compared to 13.4 percent in the fourth quarter of 2020. Adjusted EBITDA margin for International was 29.9 percent in the fourth quarter of 2021, compared to 33.2 percent in the fourth quarter of 2020. - Asia Pacific revenue was
$88.4 million , up 9 percent from the fourth quarter of 2020 on a reported and local currency basis. - Europe revenue was
$90.3 million , flat from the fourth quarter of 2020 on a reported and local currency basis. - Latin America revenue was
$45.3 million , up 6 percent from the fourth quarter of 2020 and up 15 percent on a local currency basis. - Canada revenue was
$63.6 million , up 9 percent from the fourth quarter of 2020 and up 6 percent on a local currency basis.
Adjusted EPS and Adjusted EBITDA Margin
- Adjusted EPS attributable to Equifax was
$1.84 for the fourth quarter of 2021, down 8 percent compared to the fourth quarter of 2020. Adjusted EBITDA margin was 32.2 percent for the fourth quarter of 2021, compared to 37.8 percent in the fourth quarter of 2020. - Full year adjusted EPS attributable to Equifax was
$7.64 , up 10 percent from the prior year period. Full year adjusted EBITDA margin was 33.9 percent. compared to 36.2 percent in 2020. - These financial measures exclude adjustments as described further in the Non-GAAP Financial Measures section below.
2022 First Quarter and Full Year Guidance | |||||||
Q1 2022 | FY 2022 | ||||||
Low-End | High-End | Low-End | High-End | ||||
Reported Revenue | |||||||
Reported Revenue Growth | |||||||
Local Currency Growth (1) | |||||||
Organic Local Currency Growth (1) | |||||||
Adjusted Earnings Per Share | |||||||
(1) | Refer to page 10 for definitions. |
About Equifax
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by more than 13,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com.
Earnings Conference Call and Audio Webcast
In conjunction with this release, Equifax will host a conference call on February 10, 2022 at 8:30 a.m. (ET) via a live audio webcast. To access the webcast and related presentation materials, go to the Investor Relations section of our website at www.equifax.com. The discussion will be available via replay at the same site shortly after the conclusion of the webcast. This press release is also available at that website.
Non-GAAP Financial Measures
This earnings release presents adjusted EPS attributable to Equifax which is diluted EPS attributable to Equifax adjusted (to the extent noted above for different periods) for acquisition-related amortization expense, costs related to the 2017 cybersecurity incident (these costs are comprised of legal fees for 2021, and legal fees and incremental costs to transform our information technology infrastructure and data security for 2020), fair value adjustment of equity investments, pension mark-to-market fair value adjustment, income tax effects of Q1 2020 gain on fair market value adjustment of equity investment, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, legal settlement unrelated to the 2017 cybersecurity incident, realignment of internal resources, income tax effect of stock awards recognized upon vesting or settlement, Argentina highly inflationary foreign currency adjustment, valuation allowance for certain deferred tax assets and tax benefit on legal settlement related to the 2017 cybersecurity incident. All adjustments are net of tax, with a reconciling item for the aggregated tax impact of the adjustments. This earnings release also presents adjusted EBITDA and adjusted EBITDA margin which is defined as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization, and also excludes certain one-time items. These are important financial measures for Equifax but are not financial measures as defined by GAAP.
These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of net income or EPS as determined in accordance with GAAP.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented in the Q&A. This information can also be found under "Investor Relations/Financial Information/Non-GAAP Financial Measures" on our website at www.equifax.com.
Forward-Looking Statements
This release contains forward-looking statements and forward-looking information. These statements can be identified by expressions of belief, expectation or intention, as well as statements that are not historical fact. These statements are based on certain factors and assumptions including with respect to foreign exchange rates, expected growth, results of operations, performance, the outcome of legal proceedings, business prospects and opportunities and effective tax rates. While the Company believes these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.
Several factors could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to, actions taken by us, including restructuring or strategic initiatives (including our technology, data and security cloud transformation, capital investments and asset acquisitions or dispositions), as well as developments beyond our control, including, but not limited to, the impact of COVID-19 and changes in U.S. and worldwide economic conditions that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services. The extent to which the COVID-19 pandemic could negatively impact our operations will depend on future developments which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, the actions taken to control the spread of COVID-19 or treat its impact, and changes in U.S. and worldwide economic conditions. Further deteriorations in economic conditions, as a result of COVID-19 or otherwise, could lead to a further or prolonged decline in demand for our products and services and negatively impact our business. It may also impact financial markets and corporate credit markets which could adversely impact our access to financing or the terms of any financing. We cannot at this time predict the extent of the impact of the COVID-19 pandemic and resulting economic impact, but it could have a material adverse effect on our business, financial position, results of operations and cash flows. Other risk factors include the impact of our technology and security transformation and improvements in our information technology and data security infrastructure; changes in tax regulations; adverse or uncertain economic conditions and changes in credit and financial markets, such as rising interest rates and inflation; potential adverse developments in new and pending legal proceedings or government investigations; risks associated with our ability to comply with business practice commitments and similar obligations under settlement agreements and consent orders entered into in connection with the 2017 cybersecurity incident; economic, political and other risks associated with international sales and operations; risks relating to unauthorized access to data or breaches of confidential information due to criminal conduct, attacks by hackers, employee or insider malfeasance and/or human error; changes in, and the effects of, laws and regulations and government policies governing or affecting our business, including, without limitation, our examination and supervision by the Consumer Financial Protection Bureau, a federal agency that holds primary responsibility for the regulation of consumer protection with respect to financial products and services in the U.S., oversight by the U.K. Financial Conduct Authority and Information Commissioner's Office of our debt collections services and core credit reporting businesses in the U.K., oversight by the Office of Australian Information Commission, the Australian Competition and Consumer Commission and other regulatory entities of our credit reporting business in Australia and the impact of current privacy laws and regulations, including the European General Data Protection Regulation and the California Consumer Privacy Act, or any future privacy laws and regulations; federal or state responses to identity theft concerns; our ability to successfully develop and market new products and services, respond to pricing and other competitive pressures, complete and integrate acquisitions and other investments and achieve targeted cost efficiencies; timing and amount of capital expenditures; changes in capital markets and corresponding effects on the Company's investments and benefit plan obligations; foreign currency exchange rates and earnings repatriation limitations; and the decisions of taxing authorities which could affect our effective tax rates. A summary of additional risks and uncertainties can be found in our Annual Report on Form 10-K for the year ended December 31, 2020 including without limitation under the captions "Item 1. Business -- Governmental Regulation" and "-- Forward-Looking Statements" and "Item 1A. Risk Factors" and in our other filings with the U.S. Securities and Exchange Commission. Forward-looking statements are given only as at the date of this release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact: | |
Dorian Hare | Kate Walker |
Investor Relations | Media Relations |
(404) 885-8210 | mediainquiries@equifax.com |
dorian.hare@equifax.com | |
EQUIFAX CONSOLIDATED STATEMENTS OF INCOME
| ||||
Three Months Ended December 31, | ||||
(In millions, except per share amounts) | 2021 | 2020 | ||
Operating revenue | $ 1,253.2 | $ 1,118.5 | ||
Operating expenses: | ||||
Cost of services (exclusive of depreciation and amortization below) | 525.7 | 480.9 | ||
Selling, general and administrative expenses | 343.1 | 366.5 | ||
Depreciation and amortization | 132.2 | 101.6 | ||
Total operating expenses | 1,001.0 | 949.0 | ||
Operating income | 252.2 | 169.5 | ||
Interest expense | (38.5) | (36.9) | ||
Other expense, net | (75.5) | (38.1) | ||
Consolidated income before income taxes | 138.2 | 94.5 | ||
Provision for income taxes | (15.2) | (16.8) | ||
Consolidated net income | 123.0 | 77.7 | ||
Less: Net income attributable to noncontrolling interests including redeemable | (0.9) | (3.2) | ||
Net income attributable to Equifax | $ 122.1 | $ 74.5 | ||
Basic earnings per common share: | ||||
Net income attributable to Equifax | $ 1.00 | $ 0.61 | ||
Weighted-average shares used in computing basic earnings per share | 122.0 | 121.7 | ||
Diluted earnings per common share: | ||||
Net income attributable to Equifax | $ 0.99 | $ 0.61 | ||
Weighted-average shares used in computing diluted earnings per share | 123.8 | 123.1 | ||
Dividends per common share | $ 0.39 | $ 0.39 | ||
EQUIFAX CONSOLIDATED STATEMENTS OF INCOME
| ||||
Twelve Months Ended December 31, | ||||
(In millions, except per share amounts) | 2021 | 2020 | ||
Operating revenue | $ 4,923.9 | $ 4,127.5 | ||
Operating expenses: | ||||
Cost of services (exclusive of depreciation and amortization below) | 1,980.9 | 1,737.4 | ||
Selling, general and administrative expenses | 1,324.6 | 1,322.5 | ||
Depreciation and amortization | 480.4 | 391.0 | ||
Total operating expenses | 3,785.9 | 3,450.9 | ||
Operating income | 1,138.0 | 676.6 | ||
Interest expense | (145.6) | (141.6) | ||
Other (expense) income, net | (43.2) | 150.2 | ||
Consolidated income before income taxes | 949.2 | 685.2 | ||
Provision for income taxes | (200.7) | (159.0) | ||
Consolidated income from continuing operations | 748.5 | 526.2 | ||
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling | (4.3) | (6.1) | ||
Net income attributable to Equifax | $ 744.2 | $ 520.1 | ||
Basic earnings per common share: | ||||
Net income attributable to Equifax | $ 6.11 | $ 4.28 | ||
Weighted-average shares used in computing basic earnings per share | 121.9 | 121.5 | ||
Diluted earnings per common share: | ||||
Net income attributable to Equifax | $ 6.02 | $ 4.24 | ||
Weighted-average shares used in computing diluted earnings per share | 123.6 | 122.8 | ||
Dividends per common share | $ 1.56 | $ 1.56 | ||
EQUIFAX CONDENSED CONSOLIDATED BALANCE SHEET
| ||||
December 31, | ||||
(In millions, except par values) | 2021 | 2020 | ||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 224.7 | $ 1,684.6 | ||
Trade accounts receivable, net of allowance for doubtful accounts of | 727.6 | 630.6 | ||
Prepaid expenses | 108.4 | 104.1 | ||
Other current assets | 60.2 | 59.0 | ||
Total current assets | 1,120.9 | 2,478.3 | ||
Property and equipment: | ||||
Capitalized internal-use software and system costs | 1,727.3 | 1,374.5 | ||
Data processing equipment and furniture | 299.6 | 299.9 | ||
Land, buildings and improvements | 250.3 | 239.1 | ||
Total property and equipment | 2,277.2 | 1,913.5 | ||
Less accumulated depreciation and amortization | (961.3) | (774.1) | ||
Total property and equipment, net | 1,315.9 | 1,139.4 | ||
Goodwill | 6,258.1 | 4,495.8 | ||
Indefinite-lived intangible assets | 94.9 | 94.9 | ||
Purchased intangible assets, net | 1,898.0 | 997.8 | ||
Other assets, net | 353.1 | 405.6 | ||
Total assets | $ 11,040.9 | $ 9,611.8 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Short-term debt and current maturities of long-term debt | $ 824.8 | $ 1,101.1 | ||
Accounts payable | 211.6 | 159.1 | ||
Accrued expenses | 237.5 | 251.8 | ||
Accrued salaries and bonuses | 257.9 | 250.3 | ||
Deferred revenue | 121.3 | 108.3 | ||
Other current liabilities | 638.2 | 612.5 | ||
Total current liabilities | 2,291.3 | 2,483.1 | ||
Long-term debt | 4,470.1 | 3,277.3 | ||
Deferred income tax liabilities, net | 358.2 | 332.3 | ||
Long-term pension and other postretirement benefit liabilities | 130.1 | 130.7 | ||
Other long-term liabilities | 190.0 | 178.1 | ||
Total liabilities | 7,439.7 | 6,401.5 | ||
Equifax shareholders' equity: | ||||
Preferred stock, | — | — | ||
Common stock, Issued shares - 189.3 at December 31, 2021 and 2020; Outstanding shares - 122.1 and 121.8 at December 31, 2021 and 2020, respectively | 236.6 | 236.6 | ||
Paid-in capital | 1,536.7 | 1,470.7 | ||
Retained earnings | 4,751.6 | 4,185.4 | ||
Accumulated other comprehensive loss | (295.4) | (171.4) | ||
Treasury stock, at cost, 66.6 shares and 66.9 shares at December 31, 2021 and 2020, | (2,639.2) | (2,547.0) | ||
Stock held by employee benefits trusts, at cost, 0.6 shares at December 31, 2021 and 2020, respectively | (5.9) | (5.9) | ||
Total Equifax shareholders' equity | 3,584.4 | 3,168.4 | ||
Noncontrolling interests including redeemable noncontrolling interests | 16.8 | 41.9 | ||
Total shareholders' equity | 3,601.2 | 3,210.3 | ||
Total liabilities and equity | $ 11,040.9 | $ 9,611.8 | ||
EQUIFAX CONSOLIDATED STATEMENTS OF CASH FLOWS
| ||||
Twelve Months Ended December 31, | ||||
(In millions) | 2021 | 2020 | ||
Operating activities: | ||||
Consolidated net income | $ 748.5 | $ 526.2 | ||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 489.6 | 399.3 | ||
Stock-based compensation expense | 54.9 | 54.7 | ||
Deferred income taxes | 9.3 | 66.5 | ||
Loss (gain) on fair market value adjustment of equity investments | 63.6 | (149.5) | ||
Gain on sale of asset | (4.6) | — | ||
Gain on divestiture | (0.2) | — | ||
Changes in assets and liabilities, excluding effects of acquisitions: | ||||
Accounts receivable, net | (66.2) | (93.7) | ||
Other assets, current and long-term | 16.4 | 35.8 | ||
Current and long-term liabilities, excluding debt | 23.5 | 106.9 | ||
Cash provided by operating activities | 1,334.8 | 946.2 | ||
Investing activities: | ||||
Capital expenditures | (469.0) | (421.3) | ||
Acquisitions, net of cash acquired | (2,935.6) | (61.4) | ||
Cash received from sale of asset | 4.9 | — | ||
Cash received from divestitures | 1.5 | — | ||
Investment in unconsolidated affiliates, net | — | (10.0) | ||
Cash used in investing activities | (3,398.2) | (492.7) | ||
Financing activities: | ||||
Net short-term borrowings (repayments) | 323.4 | (0.7) | ||
Payments on long-term debt | (1,100.2) | (125.0) | ||
Proceeds from issuance of long-term debt | 1,697.1 | 1,123.3 | ||
Treasury stock purchases | (69.9) | — | ||
Dividends paid to Equifax shareholders | (190.0) | (189.5) | ||
Dividends paid to noncontrolling interests | (6.5) | (4.6) | ||
Proceeds from exercise of stock options and employee stock purchase plan | 46.8 | 41.7 | ||
Payment of taxes related to settlement of equity awards | (57.3) | (15.9) | ||
Purchase of redeemable noncontrolling interests | (11.2) | (9.0) | ||
Debt issuance costs | (14.5) | (9.8) | ||
Other | — | 0.3 | ||
Cash provided by financing activities | 617.7 | 810.8 | ||
Effect of foreign currency exchange rates on cash and cash equivalents | (14.2) | 19.0 | ||
(Decrease) increase in cash and cash equivalents | (1,459.9) | 1,283.3 | ||
Cash and cash equivalents, beginning of period | 1,684.6 | 401.3 | ||
Cash and cash equivalents, end of period | $ 224.7 | $ 1,684.6 | ||
Common Questions & Answers (Unaudited)
(Dollars in millions)
1. Can you provide a further analysis of operating revenue for the fourth quarter and the full year by operating segment?
Operating revenue consists of the following components:
(In millions) | Three Months Ended | |||||||||||
Local Currency | Organic Local | |||||||||||
Operating revenue: | 2021 | 2020 | $ Change | % Change | % Change (1) | % Change (2) | ||||||
Verification Services | $ 426.6 | $ 330.0 | $ 96.6 | |||||||||
Employer Services | 105.0 | 82.4 | 22.6 | |||||||||
Total Workforce Solutions | 531.6 | 412.4 | 119.2 | |||||||||
Online Information Solutions | 313.9 | 313.7 | 0.2 | —% | (4)% | |||||||
Mortgage Solutions | 40.7 | 50.4 | (9.7) | (19)% | (19)% | |||||||
Financial Marketing Services | 79.4 | 69.6 | 9.8 | |||||||||
Total U.S. Information Solutions | 434.0 | 433.7 | 0.3 | —% | (3)% | |||||||
Asia Pacific | 88.4 | 81.4 | 7.0 | |||||||||
Europe | 90.3 | 90.1 | 0.2 | —% | —% | (1)% | ||||||
Latin America | 45.3 | 42.5 | 2.8 | |||||||||
Canada | 63.6 | 58.4 | 5.2 | |||||||||
Total International | 287.6 | 272.4 | 15.2 | |||||||||
Total operating revenue | $ 1,253.2 | $ 1,118.5 | $ 134.7 | |||||||||
(In millions) | Twelve Months Ended | |||||||||||
Local | Organic Local | |||||||||||
Operating revenue: | 2021 | 2020 | $ Change | % Change | % Change (1) | % Change (2) | ||||||
Verification Services | $ 1,608.9 | $ 1,103.2 | $ 505.7 | |||||||||
Employer Services | 426.5 | 358.5 | 68.0 | |||||||||
Total Workforce Solutions | 2,035.4 | 1,461.7 | 573.7 | |||||||||
Online Information Solutions | 1,349.8 | 1,296.4 | 53.4 | |||||||||
Mortgage Solutions | 190.4 | 199.8 | (9.4) | (5)% | (5)% | |||||||
Financial Marketing Services | 246.5 | 215.0 | 31.5 | |||||||||
Total U.S. Information Solutions | 1,786.7 | 1,711.2 | 75.5 | |||||||||
Asia Pacific | 356.0 | 296.5 | 59.5 | |||||||||
Europe | 319.9 | 285.2 | 34.7 | |||||||||
Latin America | 175.9 | 160.3 | 15.6 | |||||||||
Canada | 250.0 | 212.6 | 37.4 | |||||||||
Total International | 1,101.8 | 954.6 | 147.2 | |||||||||
Total operating revenue | $ 4,923.9 | $ 4,127.5 | $ 796.4 | |||||||||
(1) | Local currency revenue change is calculated by conforming 2021 results using 2020 exchange rates. |
(2) | Organic local currency revenue growth is defined as local currency revenue growth, adjusted to reflect an increase in prior |
2. What are the costs related to the technology transformation?
Costs related to the technology transformation are defined as incremental costs to transform our information technology infrastructure and data security. From January 1, 2018 through December 31, 2020, these technology transformation costs were excluded from adjusted net income and adjusted EBITDA. Beginning in the first quarter of 2021, technology transformation costs were included in our adjusted net income and adjusted EBITDA. Technology transformation costs for the fourth quarter and full year 2021 are provided for comparability to prior periods. We recorded
3. What is the estimate of the change in overall U.S. Mortgage Market transaction volume that is included in the 2022 first quarter and full year guidance provided?
Equifax estimates the change year over year in overall U.S. Mortgage Market transaction volume as being equal to the change in total U.S. mortgage credit inquiries received by Equifax. The change year over year in total U.S. mortgage credit inquiries received by Equifax in the first quarter of 2021 was an increase of
4. What is the impact of the GCS integration on operating segment performance?
In the fourth quarter of 2021, we integrated our Global Consumer Solutions business into our U.S. Information Solutions, Workforce Solutions and International operating segments. U.S. consumer credit monitoring solutions businesses have been moved into U.S. Information Solutions, with the remaining U.S. consumer identity theft protection business moved to Workforce Solutions. All international consumer credit monitoring solutions businesses in Canada and Europe have been moved into the International operating segment. In addition, certain costs related to legacy GCS platforms have been reclassified as expenses within our Corporate segment, as these platforms are now being utilized by multiple operating segments and are considered global in nature. For the fourth quarter and full year 2021, costs reclassified from our legacy GCS operating segment to our Corporate segment were
The change in operating segments has been applied retrospectively to our segment results for all periods presented within this earnings release. The following table reflects the impacts of the GCS integration on revenue, operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin for all periods for 2020 and 2021. Year to date amounts may not equal the sum of all quarterly periods due to rounding.
(In millions) | ||||||||||||||||||||
Revenue | Q1 | Q2 | Q3 2020 | Q4 2020 | FY | Q1 | Q2 | Q3 | Q4 | FY | ||||||||||
Workforce Solutions (prior | ||||||||||||||||||||
Impact of segment change | 6.1 | 6.0 | 5.9 | 5.9 | 23.8 | 6.3 | 6.3 | 6.6 | 6.7 | 26.0 | ||||||||||
Workforce Solutions (revised) | ||||||||||||||||||||
U.S. Information Solutions (prior | ||||||||||||||||||||
Impact of segment change | 68.7 | 56.1 | 57.7 | 46.2 | 228.7 | 50.0 | 49.9 | 49.9 | 45.5 | 195.1 | ||||||||||
U.S. Information Solutions (revised) | ||||||||||||||||||||
International (prior reporting | ||||||||||||||||||||
Impact of segment change | 22.2 | 21.7 | 23.7 | 24.9 | 92.5 | 25.1 | 26.3 | 25.2 | 24.6 | 101.2 | ||||||||||
International (revised) | ||||||||||||||||||||
Operating Income | ||||||||||||||||||||
Workforce Solutions (prior | ||||||||||||||||||||
Impact of segment change | 0.7 | 0.9 | 0.8 | 0.9 | 3.2 | 0.9 | 0.6 | 0.9 | 0.7 | 3.2 | ||||||||||
Workforce Solutions (revised) | ||||||||||||||||||||
Workforce Solutions operating | ||||||||||||||||||||
U.S. Information Solutions (prior | ||||||||||||||||||||
Impact of segment change | 18.6 | 12.4 | 14.9 | 5.5 | 51.4 | 15.2 | 10.6 | 11.0 | 7.5 | 44.3 | ||||||||||
U.S. Information Solutions | ||||||||||||||||||||
U.S. Information Solutions | ||||||||||||||||||||
International (prior reporting | $ 15.3 | $ (6.2) | $ 25.4 | $ 32.2 | $ 66.7 | $ 27.8 | $ 29.3 | $ 27.9 | $ 41.6 | |||||||||||
Impact of segment change | 0.4 | 0.9 | 3.2 | 4.4 | 9.0 | 2.0 | 4.1 | 4.6 | 4.6 | 15.2 | ||||||||||
International (revised) | $ 15.7 | $ (5.3) | $ 28.6 | $ 36.6 | $ 75.7 | $ 29.8 | $ 33.4 | $ 32.5 | $ 46.2 | |||||||||||
International operating margin | (2.6)% | |||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
Workforce Solutions (prior | ||||||||||||||||||||
Impact of segment change | 1.4 | 1.5 | 1.4 | 1.5 | 5.9 | 1.5 | 1.4 | 1.5 | (0.4) | 4.1 | ||||||||||
Workforce Solutions (revised) | ||||||||||||||||||||
Workforce Solutions adjusted | ||||||||||||||||||||
U.S. Information Solutions (prior | ||||||||||||||||||||
Impact of segment change | 21.8 | 16.1 | 18.4 | 11.7 | 68.0 | 17.9 | 13.7 | 14.6 | 11.0 | 57.2 | ||||||||||
U.S. Information Solutions | ||||||||||||||||||||
U.S. Information Solutions | ||||||||||||||||||||
International (prior reporting structure) | $ 60.3 | $ 39.5 | $ 70.7 | $ 84.2 | $ 68.1 | $ 68.5 | $ 65.6 | $ 79.3 | ||||||||||||
Impact of segment change | 1.6 | 2.9 | 4.7 | 6.3 | 15.5 | 3.5 | 5.9 | 6.7 | 6.7 | 22.8 | ||||||||||
International (revised) | $ 61.9 | $ 42.4 | $ 75.4 | $ 90.5 | $ 71.6 | $ 74.4 | $ 72.3 | $ 86.0 | ||||||||||||
International adjusted EBITDA |
Additional information around the change in operating segments will be included within our upcoming Form 10-K for the year ended December 31, 2021. The below table illustrates revenue and operating income under our legacy operating segments for the fourth quarter and full year of 2021.
(in millions) | Q4 2021 | FY 2021 | ||||||
Segment | Revenue | Operating Income | Revenue | Operating Income | ||||
Workforce Solutions | $ 524.9 | $ 214.5 | $ 2,009.4 | $ 997.5 | ||||
USIS | 388.5 | 125.0 | 1,591.6 | 507.5 | ||||
International | 263.0 | 41.6 | 1,000.6 | 126.7 | ||||
GCS | 76.8 | 8.0 | 322.3 | 45.7 | ||||
Corporate | — | (136.9) | — | (539.4) | ||||
Total EFX | $ 1,253.2 | $ 252.2 | $ 4,923.9 | $ 1,138.0 | ||||
Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share amounts)
A. Reconciliation of net income attributable to Equifax to diluted EPS attributable to Equifax, defined as net income adjusted for acquisition-related amortization expense, costs related to the 2017 cybersecurity incident, fair value adjustment of equity investments, pension mark-to-market fair value adjustments, income tax effects of Q1 2020 gain on fair market value adjustment of equity investment, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, legal settlement unrelated to the 2017 cybersecurity incident, realignment of internal resources and other costs, the income tax effect of stock awards recognized upon vesting or settlement, Argentina highly inflationary foreign currency impacts, valuation allowance for certain deferred tax assets, tax benefit on legal settlement related to the 2017 cybersecurity incident and income tax adjustments:
Three Months Ended December 31, | ||||||||
(In millions, except per share amounts) | 2021 | 2020 | $ Change | % Change | ||||
Net income attributable to Equifax | $ 122.1 | $ 74.5 | $ 47.6 | |||||
Acquisition-related amortization expense of certain acquired intangibles (1) | 56.8 | 36.0 | 20.8 | |||||
2017 cybersecurity incident related costs (2) | 0.3 | 112.6 | (112.3) | nm | ||||
Fair market value adjustment of equity investment (3) | 63.8 | 13.3 | 50.5 | nm | ||||
Pension mark-to-market fair value adjustment (4) | 20.2 | 32.2 | (12.0) | (37)% | ||||
Income tax effects of Q1 2020 gain on fair market value adjustment of equity | — | (1.4) | 1.4 | nm | ||||
Foreign currency impact of certain intercompany loans (6) | 0.4 | 3.3 | (2.9) | nm | ||||
Acquisition-related costs other than acquisition amortization (7) | 8.9 | — | 8.9 | nm | ||||
Legal settlement (8) | (6.5) | — | (6.5) | nm | ||||
Realignment of internal resources and other costs (9) | 8.6 | 31.9 | (23.3) | (73)% | ||||
Income tax effects of stock awards that are recognized upon vesting or settlement (10) | (4.9) | (3.2) | (1.7) | |||||
Argentina highly inflationary foreign currency adjustment (11) | 0.1 | — | 0.1 | nm | ||||
Tax impact of adjustments (14) | (41.6) | (53.6) | 12.0 | (22)% | ||||
Net income attributable to Equifax, adjusted for items listed above | $ 228.2 | $ 245.6 | $ (17.4) | (7)% | ||||
Diluted EPS attributable to Equifax, adjusted for items listed above | $ 1.84 | $ 2.00 | $ (0.16) | (8)% | ||||
Weighted-average shares used in computing diluted EPS | 123.8 | 123.1 | ||||||
Twelve Months Ended December 31, | ||||||||
(In millions, except per share amounts) | 2021 | 2020 | $ Change | % Change | ||||
Net income attributable to Equifax | $ 744.2 | $ 520.1 | $ 224.1 | |||||
Acquisition-related amortization expense of certain acquired intangibles (1) | 176.4 | 141.8 | 34.6 | |||||
2017 cybersecurity incident related costs (2) | (0.1) | 365.0 | (365.1) | nm | ||||
Fair market value adjustment of equity investments (3) | 64.0 | (149.5) | 213.5 | nm | ||||
Pension mark-to-market fair value adjustment (4) | 20.2 | 32.2 | (12.0) | (37)% | ||||
Income tax effects of Q1 2020 gain on fair market value adjustment of equity | — | (5.4) | 5.4 | nm | ||||
Foreign currency impact of certain intercompany loans (6) | (4.3) | 6.2 | (10.5) | nm | ||||
Acquisition-related costs other than acquisition amortization (7) | 19.1 | — | 19.1 | nm | ||||
Legal settlement (8) | (6.5) | — | (6.5) | nm | ||||
Realignment of internal resources and other costs (9) | 8.6 | 31.9 | (23.3) | (73)% | ||||
Income tax effects of stock awards that are recognized upon vesting or settlement (10) | (14.2) | (6.1) | (8.1) | |||||
Argentina highly inflationary foreign currency adjustment (11) | (0.8) | 0.5 | (1.3) | nm | ||||
Valuation allowance for certain deferred tax assets (12) | — | 7.0 | (7.0) | nm | ||||
Tax benefit on legal settlement related to the 2017 cybersecurity incident (13) | — | (4.8) | 4.8 | nm | ||||
Tax impact of adjustments (14) | (61.9) | (82.8) | 20.9 | (25)% | ||||
Net income attributable to Equifax, adjusted for items listed above | $ 944.7 | $ 856.1 | $ 88.6 | |||||
Diluted EPS attributable to Equifax, adjusted for items listed above | $ 7.64 | $ 6.97 | $ 0.67 | |||||
Weighted-average shares used in computing diluted EPS | 123.6 | 122.8 | ||||||
(1) | During the fourth quarter of 2021, we recorded acquisition-related amortization expense of certain acquired intangibles of |
For the year ended December 31, 2021, we recorded acquisition-related amortization expense of certain acquired intangibles of | |
(2) | During the fourth quarter of 2021, we recorded legal fees related to the 2017 cybersecurity incident of |
(3) | During the fourth quarter of 2021, we recorded a |
(4) | During the fourth quarter of 2021, we recorded a |
(5) | During the fourth quarter of 2020 and the year ended December 31, 2020, we recorded income tax effects of the Q1 2020 gain on fair market value adjustment of an equity investment of |
(6) | During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded foreign currency loss of |
(7) | During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded |
(8) | During the fourth quarter of 2021, we recorded a |
(9) | During the fourth quarter of 2021 and the fourth quarter of 2020, we recorded |
(10) | During the fourth quarter and for the year ended December 31, 2021, we recorded a tax benefit of |
(11) | Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. For the fourth quarter and year ended December 31, 2021, we recorded a |
(12) | During the first quarter of 2020, we recorded a valuation allowance for certain deferred tax assets of |
(13) | During the first quarter of 2020, we recorded a |
(14) | During the fourth quarter of 2021, we recorded the tax impact of adjustments of |
For the year ended December 31, 2021, we recorded the tax impact of adjustments of
| |
Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share amounts)
B. Reconciliation of net income attributable to Equifax to adjusted EBITDA, defined as net income excluding income taxes, interest expense, net, depreciation and amortization, costs related to the 2017 cybersecurity incident, fair value adjustment of equity investments, pension mark-to-market fair value adjustments, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, legal settlement unrelated to the 2017 cybersecurity incident, realignment of internal resources and other costs, Argentina highly inflationary foreign currency impacts and presentation of adjusted EBITDA margin:
Three Months Ended December 31, | ||||||||
(In millions) | 2021 | 2020 | $ Change | % Change | ||||
Revenue | $ 1,253.2 | $ 1,118.5 | $ 134.7 | |||||
Net income attributable to Equifax | $ 122.1 | $ 74.5 | $ 47.6 | |||||
Income taxes | 15.2 | 16.8 | (1.6) | (10)% | ||||
Interest expense, net* | 38.1 | 36.4 | 1.7 | |||||
Depreciation and amortization | 132.2 | 101.6 | 30.6 | |||||
2017 cybersecurity incident related costs (1) | 0.3 | 112.4 | (112.1) | nm | ||||
Fair market value adjustment of equity investment (2) | 63.8 | 13.3 | 50.5 | nm | ||||
Pension mark-to-market fair value adjustment (3) | 20.2 | 32.2 | (12.0) | (37)% | ||||
Foreign currency impact of certain intercompany loans (4) | 0.4 | 3.3 | (2.9) | nm | ||||
Acquisition-related costs other than acquisition amortization (5) | 8.9 | — | 8.9 | nm | ||||
Legal settlement (6) | (6.5) | — | (6.5) | nm | ||||
Realignment of internal resources and other costs (7) | 8.6 | 31.9 | (23.3) | (73)% | ||||
Argentina highly inflationary foreign currency adjustment (8) | 0.1 | — | 0.1 | nm | ||||
Adjusted EBITDA, excluding the items listed above | $ 403.4 | $ 422.4 | $ (19.0) | (5)% | ||||
Adjusted EBITDA margin | ||||||||
Twelve Months Ended December 31, | ||||||||
(In millions) | 2021 | 2020 | $ Change | % Change | ||||
Revenue | $ 4,923.9 | $ 4,127.5 | $ 796.4 | |||||
Net income attributable to Equifax | $ 744.2 | $ 520.1 | $ 224.1 | |||||
Income taxes | 200.7 | 159.0 | 41.7 | |||||
Interest expense, net* | 144.3 | 138.5 | 5.8 | |||||
Depreciation and amortization | 480.4 | 391.0 | 89.4 | |||||
2017 cybersecurity incident related costs (1) | (0.1) | 364.8 | (364.9) | nm | ||||
Fair market value adjustment of equity investments (2) | 64.0 | (149.5) | 213.5 | nm | ||||
Pension mark-to-market fair value adjustment (3) | 20.2 | 32.2 | (12.0) | (37)% | ||||
Foreign currency impact of certain intercompany loans (4) | (4.3) | 6.2 | (10.5) | nm | ||||
Acquisition-related costs other than acquisition amortization (5) | 19.1 | — | 19.1 | nm | ||||
Legal settlement (6) | (6.5) | — | (6.5) | nm | ||||
Realignment of internal resources and other costs (7) | 8.6 | 31.9 | (23.3) | (73)% | ||||
Argentina highly inflationary foreign currency adjustment (8) | (0.8) | 0.5 | (1.3) | nm | ||||
Adjusted EBITDA, excluding the items listed above | $ 1,669.8 | $ 1,494.7 | $ 175.1 | |||||
Adjusted EBITDA margin | ||||||||
*Excludes interest income of | |
(1) | During the fourth quarter of 2021, we recorded legal fees related to the 2017 cybersecurity incident of |
(2) | During the fourth quarter of 2021, we recorded a |
(3) | During the fourth quarter of 2021, we recorded a |
(4) | During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded foreign currency loss of |
(5) | During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded |
(6) | During the fourth quarter of 2021, we recorded a |
(7) | During the fourth quarter of 2021 and the fourth quarter of 2020, we recorded |
(8) | Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. For the fourth quarter and year ended December 31, 2021, we recorded a |
C. Reconciliation of net income attributable to Equifax to adjusted EBITDA, defined as net income excluding income taxes, interest expense, net, depreciation and amortization, costs related to the 2017 cybersecurity incident, fair value adjustment of equity investments, pension mark-to-market fair value adjustments, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, legal settlement unrelated to the 2017 cybersecurity incident, realignment of internal resources and other costs, Argentina highly inflationary foreign currency impacts and presentation of adjusted EBITDA margin for each of the segments:
(In millions) | Three Months Ended December 31, 2021 | |||||||||
Workforce | U.S. Information | International | General | Total | ||||||
Revenue | $ 531.6 | $ 434.0 | $ 287.6 | — | $ 1,253.2 | |||||
Operating Income | 215.2 | 132.5 | 46.2 | (141.7) | 252.2 | |||||
Depreciation and Amortization | 39.2 | 42.5 | 33.9 | 16.6 | 132.2 | |||||
Other income/(expense), net* | (0.1) | 0.5 | (69.5) | (6.8) | (75.9) | |||||
Noncontrolling interest | — | — | (0.9) | — | (0.9) | |||||
Adjustments (1) | 3.0 | (4.4) | 76.3 | 20.9 | 95.8 | |||||
Adjusted EBITDA | $ 257.3 | $ 171.1 | $ 86.0 | $ (111.0) | $ 403.4 | |||||
Operating Margin | nm | |||||||||
Adjusted EBITDA Margin | nm | |||||||||
(In millions) | Twelve Months Ended December 31, 2021 | |||||||||
Workforce | U.S. Information | International | General | Total | ||||||
Revenue | $ 2,035.4 | $ 1,786.7 | $ 1,101.8 | — | $ 4,923.9 | |||||
Operating Income | 1,000.7 | 551.8 | 141.9 | (556.4) | 1,138.0 | |||||
Depreciation and Amortization | 106.6 | 158.4 | 141.2 | 74.2 | 480.4 | |||||
Other income/(expense), net* | — | 2.5 | (50.4) | 3.4 | (44.5) | |||||
Noncontrolling interest | — | — | (4.3) | — | (4.3) | |||||
Adjustments (1) | 3.1 | (0.6) | 75.9 | 21.8 | 100.2 | |||||
Adjusted EBITDA | $ 1,110.4 | $ 712.1 | $ 304.3 | $ (457.0) | $ 1,669.8 | |||||
Operating Margin | nm | |||||||||
Adjusted EBITDA Margin | nm | |||||||||
*Excludes interest income of |
(In millions) | Three Months Ended December 31, 2020 | |||||||||
Workforce | U.S. Information | International | General | Total | ||||||
Revenue | $ 412.4 | $ 433.7 | $ 272.4 | — | $ 1,118.5 | |||||
Operating Income | 200.7 | 120.1 | 36.6 | (187.9) | 169.5 | |||||
Depreciation and Amortization | 18.0 | 31.0 | 36.0 | 16.6 | 101.6 | |||||
Other income/(expense), net* | — | 0.6 | (8.9) | (30.3) | (38.6) | |||||
Noncontrolling interest | — | — | (3.2) | — | (3.2) | |||||
Adjustments (2) | 11.3 | 28.7 | 30.0 | 123.1 | 193.1 | |||||
Adjusted EBITDA | $ 230.0 | $ 180.4 | $ 90.5 | $ (78.5) | $ 422.4 | |||||
Operating Margin | nm | |||||||||
Adjusted EBITDA Margin | nm | |||||||||
(In millions) | Twelve Months Ended December 31, 2020 | |||||||||
Workforce | U.S. Information | International | General | Total | ||||||
Revenue | $ 1,461.7 | $ 1,711.2 | $ 954.6 | — | $ 4,127.5 | |||||
Operating Income | 703.9 | 515.3 | 75.7 | (618.3) | 676.6 | |||||
Depreciation and Amortization | 72.0 | 120.2 | 133.3 | 65.5 | 391.0 | |||||
Other income/(expense), net* | — | 2.6 | 133.4 | 11.1 | 147.1 | |||||
Noncontrolling interest | — | — | (6.1) | — | (6.1) | |||||
Adjustments (2) | 30.3 | 90.7 | (66.1) | 231.2 | 286.1 | |||||
Adjusted EBITDA | $ 806.2 | $ 728.8 | $ 270.2 | $ (310.5) | $ 1,494.7 | |||||
Operating Margin | nm | |||||||||
Adjusted EBITDA Margin | nm | |||||||||
*Excludes interest income |
(1) | During the fourth quarter of 2021, we recorded pre-tax expenses of |
For the year ended December 31, 2021, we recorded a pre-tax net benefit of | |
(2) | During the fourth quarter of 2020, we recorded pre-tax expenses of |
For year ended December 31, 2020, we recorded pre-tax expenses of | |
Notes to Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures
Acquisition-related amortization expense, net of tax - During the fourth quarter of 2021 and 2020, we recorded acquisition-related amortization expense of certain acquired intangibles of
We calculate this financial measure by excluding the impact of acquisition-related amortization expense and including a benefit to reflect the material cash income tax savings resulting from the income tax deductibility of amortization for certain acquired intangibles. These financial measures are not prepared in conformity with GAAP. Management believes excluding the impact of amortization expense is useful because excluding acquisition-related amortization, and other items that are not comparable allows investors to evaluate our performance for different periods on a more comparable basis. Certain acquired intangibles result in material cash income tax savings which are not reflected in earnings. Management believes that including a benefit to reflect the cash income tax savings is useful as it allows investors to better value Equifax. Management makes these adjustments to earnings when measuring profitability, evaluating performance trends, setting performance objectives and calculating our return on invested capital.
Costs related to the 2017 cybersecurity incident - Costs related to the 2017 cybersecurity incident include legal fees to respond to subsequent litigation and government investigations. Through the year ended December 31, 2020, these costs also included incremental costs to transform our information technology, data security and infrastructure. During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded pre-tax expense of
Fair market value adjustment of equity investments - During the fourth quarter and for the year ended December 31, 2021 we recorded a
During the first quarter of 2020, we recorded a
Pension mark-to-market fair value adjustment - We utilize a mark-to-market method of accounting for recognizing actuarial gains and losses and expected return on plan assets for our defined benefit pension and other postretirement benefit plans. Under our accounting methodology for recognizing actuarial gains and losses and expected return on plan assets for our defined benefit pension and other postretirement benefit plans, remeasurement of projected benefit obligation and plan assets are immediately recognized in earnings through net periodic benefit cost within Other Income (Expense) on the Consolidated Statements of Income, with pension and postretirement plans to be remeasured annually in the fourth quarter, or on an interim basis as triggering events require remeasurement. During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded a
Income tax effects of Q1 2020 gain on fair market value adjustment of equity investment - During the first quarter of 2020, we recorded a gain related to adjusting our equity method investment in India, in conjunction with the purchase of the remaining interest of our joint venture. Prior to the purchase of the remaining interest, Equifax did not have control over the joint venture. As a result of the transaction, Equifax recognized a gain related to the remeasurement of the preexisting equity interest in the India joint venture at the acquisition-date fair value of the business combination. Additional income tax effects related to this transaction were recorded each quarter of 2020. Management believes excluding this gain and related income tax effects from certain financial results provides meaningful supplemental information regarding our financial results for 2020, since the non-operating gain is not comparable among the periods. This is consistent with how our management reviews and assesses Equifax's historical performance and is useful when planning, forecasting and analyzing future periods.
Foreign currency impact of certain intercompany loans - During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded a
Acquisition-related costs other than acquisition amortization - During the fourth quarter and for the year ended December 31, 2021, we recorded
Legal Settlement - During the third quarter of 2018, we recorded an
Charge related to the realignment of internal resources and other costs - During the fourth quarter of 2021 and the fourth quarter of 2020, we recorded a restructuring charge of
Income tax effects of stock awards that are recognized upon vesting or settlement - During the fourth quarter and for the year ended December 31, 2021, we recorded a tax benefit of
Argentina highly inflationary foreign currency adjustment - Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. During the fourth quarter of 2021 and for the year ended December 31, 2021, we recorded a foreign currency loss of
Valuation allowance for certain deferred tax assets - During the first quarter of 2020, we recorded a
Tax benefit on a legal settlement related to the 2017 cybersecurity incident - During the first quarter of 2020, we recorded a
Adjusted EBITDA and EBITDA margin - Management defines adjusted EBITDA as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization, and also excludes certain one-time items. Management believes the use of adjusted EBITDA and adjusted EBITDA margin allows investors to evaluate our performance for different periods on a more comparable basis.
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SOURCE Equifax Inc.
FAQ
What are Equifax's fourth quarter 2021 financial results?
How did Workforce Solutions perform in Q4 2021?
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