Equifax Inc. announced financial results for the quarter ended March 31, 2017.

"We are off to a strong start in 2017 with our first quarter performance," said Richard F. Smith, Chairman and Chief Executive Officer at Equifax. "Broad-based growth was driven by our continued focus on new product innovation, delivering on our enterprise growth initiatives and execution of our vertical market strategies. We remain confident about our outlook for growth in 2017."

Financial Results Summary

The company reported revenue of $832.2 million in the first quarter of 2017, a 14 percent increase from the first quarter of 2016 on a reported basis and up 15 percent on a local currency basis.

First quarter diluted EPS attributable to Equifax was $1.26, up 49 percent from the first quarter of 2016. Adjusted EPS attributable to Equifax was $1.44, up 17 percent from the first quarter of 2016. This financial measure for 2017 excludes the income tax effects of stock awards recognized upon vesting or settlement and adjustments resulting from the conclusion of tax audits. The financial measure for both 2017 and 2016 excludes acquisition-related amortization expense, net of associated tax impacts, and Veda acquisition related amounts as described more fully in the attached Q&A.

Net income attributable to Equifax of $153.3 million was up 50 percent compared to the first quarter of 2016. Adjusted EBITDA margin was 36.0 percent, compared to 34.2 percent in the first quarter of 2016. These financial measures for 2017 and 2016 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.

USIS delivered solid revenue growth driven by mortgage, new product innovation and enterprise-growth initiatives.

• Total revenue was $310.1 million in the first quarter of 2017 compared to $294.9 million in the first quarter of 2016, an increase of 5 percent. Operating margin for USIS was 41.8 percent in the first quarter of 2017 compared to 41.6 percent in the first quarter of 2016. Adjusted EBITDA margin for USIS was 48.6 percent in the first quarter of 2017 compared to 48.7 percent in the first quarter of 2016.

• Online Information Solutions revenue was $225.2 million, up 3 percent from the first quarter of 2016.

• Mortgage Solutions revenue was $38.6 million, up 22 percent from the first quarter of 2016.

• Financial Marketing Services revenue was $46.3 million, up 2 percent when compared to the first quarter of 2016.

International drove double-digit local currency growth with broad-based growth across Europe, Latin America, Canada and Asia Pacific.

• Total revenue was $216.2 million in the first quarter of 2017, up 37 percent from the first quarter of 2016 and a 41 percent increase on a local currency basis. Operating margin for International was 13.8 percent in the first quarter of 2017, compared to 12.3 percent in the first quarter of 2016. Adjusted EBITDA margin for International was 31.2 percent in the first quarter of 2017, compared to 25.3 percent in the first quarter of 2016.

• Asia Pacific revenue was $72.0 million driven largely by the Veda acquisition.

• Europe revenue was $61.7 million, up 2 percent from the first quarter of 2016 and up 15 percent on a local currency basis.

• Latin America revenue was $51.0 million, up 20 percent from the first quarter of 2016 and up 20 percent on a local currency basis.

• Canada revenue was $31.5 million, up 15 percent from the first quarter of 2016 and up 11 percent on a local currency basis.

Workforce Solutions delivered double-digit growth again driven by strong performance across multiple strategic verticals.

• Total revenue was $200.0 million in the first quarter of 2017, an 11 percent increase from the first quarter of 2016. Operating margin for Workforce Solutions was 44.7 percent in the first quarter of 2017 compared to 43.6 percent in the first quarter of 2016. Adjusted EBITDA margin for Workforce Solutions was 50.2 percent in the first quarter of 2017 compared to 49.5 percent in the first quarter of 2016.

• Verification Services revenue was $115.1 million, up 16 percent when compared to the first quarter of 2016.

• Employer Services revenue was $84.9 million, up 5 percent when compared to the first quarter of 2016.

Global Consumer Solutions achieved double-digit growth driven by indirect and Direct-to-Consumer reseller revenues.

• Revenue was $105.9 million, an 11 percent increase from the first quarter of 2016 and up 13 percent on a local currency basis. Operating margin was 29.1 percent compared to 28.3 percent in the first quarter of 2016. Adjusted EBITDA margin was 31.7 percent compared to 30.8 percent in the first quarter of 2016.

Second Quarter 2017 and Full Year 2017 Outlook

We are off to a strong start in Q1. For the second quarter, we expect revenue to be between $857 and $862 million, reflecting constant currency growth of 7.0 percent to 7.5 percent, partially offset by 1 percent of foreign exchange impact. Adjusted EPS is expected to be between $1.55 and $1.58 which is up 10 percent to 12 percent, excluding $0.01 of foreign exchange headwind.

We expect full year 2017 revenue to be between $3.375 and $3.425 billion, reflecting constant currency growth of approximately 8-9 percent, partially offset by 1 percent of foreign exchange headwind at current rates.

Adjusted EPS for the year is expected to be between $5.96 and $6.10, which is up 8 percent to 10 percent. Excluding approximately $0.02 full year per share negative impact from foreign exchange, this reflects constant currency EPS growth of 8 percent to 11 percent.