"2015 was an outstanding year for Equifax. Our strong performance continued throughout the fourth quarter, with broad-based contribution from each of the business units. We are well positioned for 2016 and beyond," said Richard F. Smith, Equifax's Chairman and Chief Executive Officer. "We enter 2016 with great momentum driven by our New Product Innovation, Enterprise Growth Initiatives, and a management team that is dedicated to delivering its best to our customers, shareholders, employees, and consumers. In addition, we shortly expect to close on a large strategic acquisition. Veda Group, the premier provider of information solutions in Australia and New Zealand, will bring a highly experienced management team with new and exciting growth opportunities in the Asia Pacific region for 2016 and beyond."
Financial Results Summary
The company reported revenue of $666.3 million in the fourth quarter of 2015, a 7 percent increase from the fourth quarter of 2014 and a 10 percent increase in local currency.
Fourth quarter diluted EPS attributable to Equifax was $0.93, an increase of 16 percent as compared to fourth quarter of 2014. On a non-GAAP basis, adjusted EPS attributable to Equifax was $1.14, up 12 percent as compared to fourth quarter of 2014. This financial measure for 2015 excludes the Veda acquisition related amounts. The financial measure for both 2015 and 2014 excludes the acquisition-related amortization expense, net of associated tax impacts, as described more fully in the attached Q&A.
For the full year 2015, revenue was $2.7 billion, a 9 percent increase from 2014. Diluted EPS attributable to Equifax was $3.55, a 19 percent increase from the prior year. On a non-GAAP basis, full year adjusted EPS attributable to Equifax was $4.50, up 16 percent from the prior year period. For the full year 2015, operating margin was 26.1% compared to 26.2% for the prior year.
On a non-GAAP basis, full year adjusted operating margin was 27.4%, up 90 basis points from the prior year. These financial measures for 2015 and 2014 have been adjusted for certain items, which affect the comparability of the underlying operational performance and are described more fully in the attached Q&A.
In addition to the financial highlights noted above, fourth quarter 2015 net income attributable to Equifax was $111.9 million, a 14 percent increase from the prior year.
In the fourth quarter of 2015, we implemented an organizational realignment which changed our internal structure to include our direct to consumer reseller business in our Personal Solutions segment. This change affected the USIS and International segments, specifically Canada and the U.K. These changes were driven by an enterprise wide strategy to maximize the penetration of our products and services in our targeted markets, and aligned with the recent organizational changes for the business unit leadership. The segment results below reflect this change for all periods presented. Refer to Question 1 in the attached Q&A for more information.
Source - Equifax.com