897ca09bfa23a2d05ed5f29686c1bbcaa2a38ce950db55b03ea314fba51a125a

The jump in **Operating Cash Flow** in FY 2023 was primarily due to the absence of the **$345.0 million consumer class action settlement payment** that occurred in January 2022. Without this one-time payment, Equifax’s cash flow from operating activities saw an improvement of **$359.7 million**, driving the significant increase in FY 2023 compared to FY 2022.  **[0000033185-24-000017_efx-20231231.htm:70]** 

Why did Operating Cash Flow jump in FY 2023?

The significant rise in operating cash flow in Q1 2024 was driven by **three key factors**. First, **improved net income** boosted cash flow as consolidated net income increased to **$126.1 million** compared to **$113.5 million** in Q1 2023.  **[0000033185-24-000025_exhibit99120240331.htm:9]** **[0000033185-24-000032_efx-20240331.htm:4]** **[0000033185-24-000032_efx-20240331.htm:26]**  Second, **changes in working capital** played a role, notably through a larger increase in current and long-term liabilities (excluding debt) and a higher outflow from accounts receivable, which partially offset the benefits.  **[0000033185-24-000025_exhibit99120240331.htm:9]** **[0000033185-24-000032_efx-20240331.htm:4]** **[0000033185-24-000032_efx-20240331.htm:26]**  Finally, higher **depreciation and amortization expenses**—rising to **$166.6 million** from **$152.2 million**—added non-cash adjustments to operating activities.  **[0000033185-24-000025_exhibit99120240331.htm:9]** **[0000033185-24-000032_efx-20240331.htm:4]** 

What contributed to the significant rise in Operating Cash Flow in Q1 2024?

9fc4b7d1d008bb3f6d3a312e2f9d12a05e98565e0ae7ec06c3c33b753eb32e65

In Q4 2022, Equifax's operating income was lower primarily due to a combination of factors. The company experienced **lower operating revenue**, with revenue decreasing to **$1,198.0 million** from the previous period, which directly impacted profitability. Additionally, **higher depreciation and amortization expenses** rose to **$142.3 million**, partly driven by increased capitalized software development spending and cloud production costs. The **cost of services** also increased, rising to **$539.2 million**, which further contributed to the decline. Moreover, segment-specific challenges in **Workforce Solutions** and **USIS**, such as slower U.S. mortgage origination activity and reduced revenue from mortgage-related and marketing solutions, compounded these issues.  **[0000033185-23-000004_a2022q48-kexhibit991.htm:20]** **[0000033185-23-000004_a2022q48-kexhibit991.htm:8]** 

Why was Operating Income so low in Q4 2022?

The drop in Basic EPS in Q4 2022 was primarily due to **lower net income** resulting from a decline in both operating revenue and operating income, accompanied by an **increased interest expense** and **higher income tax provision**. Specifically, net income fell from **$122.1 million in Q4 2021** to **$108.2 million in Q4 2022**, driven by a **4% decrease in operating revenue** (from **$1,253.2 million** to **$1,198.0 million**) and lower operating income (from **$252.2 million** to **$176.1 million**). In addition, interest expense rose from **$38.5 million** to **$54.6 million** and the tax provision increased from **$15.2 million** to **$32.2 million**, all of which contributed to the decline in Basic EPS from **$1.00** to **$0.88**.  **[0000033185-23-000004_a2022q48-kexhibit991.htm:8]** **[0000033185-23-000004_a2022q48-kexhibit991.htm:1]** **[0000033185-23-000012_efx-20221231.htm:59]** 

What factors led to the drop in Basic EPS in Q4 2022?

The decline in Q4 2022 operating revenue was primarily driven by a **41% drop in U.S. mortgage revenue** amid higher interest rate pressures, which led to lower mortgage credit inquiries and originations.  **[0000033185-23-000004_a2022q48-kexhibit991.htm:11]**  Additionally, **segment-specific challenges** significantly contributed: Workforce Solutions revenue fell by **4%** (with a **7% decline in Verification Services**) while U.S. Information Solutions revenue decreased by **6%**—impacted by a **36% decline in Mortgage Solutions**, a **9% decline in Financial Marketing Services**, and a **2% decline in Online Information Solutions**.  **[0000033185-23-000004_a2022q48-kexhibit991.htm:1]**  Furthermore, the **International segment faced adverse effects from currency headwinds** and shifts in revenue mix, further influencing the overall revenue decline.  **[0000033185-23-000012_efx-20221231.htm:62]** **[0000033185-23-000004_a2022q48-kexhibit991.htm:1]** **[EFX_3227401_0]** 

What contributed to the decline in Operating Revenue in Q4 2022?

The documents mainly discuss Q4 2022 performance in a year-over-year context rather than providing a direct explanation for the sharp drop from **$219.70 million in Q3 2022** to **$141.40 million in Q4 2022**. They explain that in Q4 2022 the company experienced a **decrease in operating income** (owing to lower revenues and higher operating expenses), an **increase in interest expense**, and significant changes in the “Other Income (Expense), Net” line item. However, these factors are discussed when comparing Q4 2022 with Q4 2021, and the documents do not explicitly address why Income Before Taxes was lower in Q4 compared to Q3 2022.  **[0000033185-22-000058_efx-20220930.htm:2]** **[0000033185-23-000012_efx-20221231.htm:87]** **[0000033185-23-000004_a2022q48-kexhibit991.htm:8]** 

Why did Income Before Taxes drop sharply in Q4 2022?

The significant decline in Q1 2023 net income was primarily due to a marked drop in operating income, which fell by **$127.0 million (38%)** mainly because of **reduced revenue**—a decrease of **$61.2 million (4%)** driven by a sharp decline in the U.S. mortgage market—and **increased operating expenses** that rose by **$65.8 million (6%)**. Additionally, a higher **interest expense** increased by **$17.9 million (45%)**, which further impacted net income, although lower tax expense partly offset these declines.  **[0000033185-23-000023_efx-20230331.htm:22]** **[0000033185-23-000019_exhibit99120230331.htm:5]** **[0000033185-23-000023_efx-20230331.htm:21]** 

What caused the significant decline in Net Income in Q1 2023?

f9191c1f2929c0d680c2d87f74e8b11650de01d532157d37212f266903ee82a1

Operating Revenue (USD, millions)

Cost of Services (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Depreciation and Amortization (USD, millions)

Total Operating Expenses (USD, millions)

Operating Income (USD, millions)

Interest Expense (USD, millions)

Other Income, Net (USD, millions)

Consolidated Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Consolidated Net Income (USD, millions)

Net Income Attributable to Noncontrolling Interests (USD, millions)

Net Income Attributable to Equifax (USD, millions)

Basic Earnings per Common Share (Net income attributable to Equifax) (USD)

Weighted-average Shares Used in Computing Basic Earnings per Share (millions)

Diluted Earnings per Common Share (Net income attributable to Equifax) (USD)

Weighted-average Shares Used in Computing Diluted Earnings per Share (millions)

Dividends per Common Share (USD)

f075fda189775d7e84972da59007d243843d0de4d5594af40942b1240ff6aaee

Stock-based Compensation Expense (USD, millions)

Cash Provided by Operating Activities (USD, millions)

Capital Expenditures (USD, millions)

Cash Used in Investing Activities (USD, millions)

Net Short-term Payments (USD, millions)

Payments on Long-term Debt (USD, millions)

Dividends Paid to Equifax Shareholders (USD, millions)

Distributions Paid to Noncontrolling Interests (USD, millions)

Proceeds from Exercise of Stock Options and Employee Stock Purchase Plan (USD, millions)

Payment of Taxes Related to Settlement of Equity Awards (USD, millions)

Cash (Used in) Provided by Financing Activities (USD, millions)

Effect of Foreign Currency Exchange Rates on Cash and Cash Equivalents (USD, millions)

Increase (Decrease) in Cash and Cash Equivalents (USD, millions)

Deferred Income Taxes (USD, millions)

Cash and Cash Equivalents, Beginning of Period (USD, millions)

Cash and Cash Equivalents, End of Period (USD, millions)

df66a9d183ec9976b00b8ea1f85534e0927889f048fb9ed354c35559e90ad76f

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

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57d4586c162314fef4e633babd00845f1dbb348c199fb65108ae51d78bb7717a

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

95bbf0897a333b18ac291e0d06e50f70a89daa64813f922e870a27065c1b5812

Remaining performance obligations (less than 1 year) (USD millions)

Remaining performance obligations (1 to 3 years) (USD millions)

Remaining performance obligations (3 to 5 years) (USD millions)

Remaining performance obligations (thereafter) (USD millions)

Total remaining performance obligations (USD millions)

0cbcddb9967586fb07a210fdd7a1c3706cbfea3e20d782ae2f8819fc1b156c9d

e27bb22d21857b598e47a57630850304a76e78d8b939ecf32b99dae66ba20f2f

U.S.

Australia

U.K.

Canada

Other

Asia Pacific

Europe

Latin America

Total International

Total Revenue

e83d225311288f9134ab2e66ea67393d84078cae017d65c4d133ae669e654de8

EQUIFAX (EFX)

Financials