Equifax Inc. announced financial results for the quarter ended June 30, 2017.

"Second quarter performance reflects outstanding execution by the team and the strength of our unique portfolio of businesses," said Richard F. Smith, Chairman and Chief Executive Officer at Equifax. "The team continues to make significant progress on new product innovation and our enterprise growth initiatives, both in the U.S. and around the world. We remain confident in our outlook for 2017 and are optimistic about the opportunities in front of us as we look ahead to 2018."

Financial Results Summary

The company reported revenue of $856.7 million in the second quarter of 2017, a 6 percent increase compared to the second quarter of 2016 on a reported basis and up 7 percent on a local currency basis.

Second quarter diluted EPS attributable to Equifax was $1.36, up 26 percent compared to the second quarter of 2016. Adjusted EPS attributable to Equifax was $1.60, up 12 percent compared to the second quarter of 2016. This financial measure for 2017 excludes the income tax effects of stock awards recognized upon vesting or settlement and for 2016 excludes Veda acquisition related amounts. The financial measure for both 2017 and 2016 excludes acquisition-related amortization expense, net of associated tax impacts. These items are described more fully in the attached Q&A.

Net income attributable to Equifax of $165.4 million was up 26 percent compared to the second quarter of 2016. Adjusted EBITDA margin was 39.1 percent, compared to 36.6 percent in the second 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 strong revenue growth driven by mortgage, marketing and analytic services, and identity and fraud solutions.

• Total revenue was $331.9 million in the second quarter of 2017 compared to $307.9 million in the second quarter of 2016, an increase of 8 percent. Operating margin for USIS was 45.1 percent in the second quarter of 2017 compared to 43.5 percent in the second quarter of 2016. Adjusted EBITDA margin for USIS was 51.5 percent in the second quarter of 2017 compared to 50.4 percent in the second quarter of 2016.

• Online Information Solutions revenue was $232.6 million, up 6 percent compared to the second quarter of 2016.

• Mortgage Solutions revenue was $38.6 million, up 10 percent compared to the second quarter of 2016.

• Financial Marketing Services revenue was $60.7 million, up 15 percent compared to the second quarter of 2016.

International drove double-digit local currency growth and continued to make progress on their technology platforms and new product initiatives.

• Total revenue was $231.4 million in the second quarter of 2017, up 6 percent compared to the second quarter of 2016 and a 10 percent increase on a local currency basis. Operating margin for International was 19.9 percent in the second quarter of 2017, compared to 15.4 percent in the second quarter of 2016. Adjusted EBITDA margin for International was 30.9 percent in the second quarter of 2017, compared to 28.4 percent in the second quarter of 2016.

• Asia Pacific revenue was $76.5 million, up 6 percent compared to the second quarter of 2016 and up 4 percent on a local currency basis.

• Europe revenue was $68.5 million, up 2 percent compared to the second quarter of 2016 and up 12 percent on a local currency basis.

• Latin America revenue was $52.9 million, up 13 percent compared to the second quarter of 2016 and up 14 percent on a local currency basis.

• Canada revenue was $33.5 million, up 4 percent compared to the second quarter of 2016 and up 8 percent on a local currency basis.

Workforce Solutions continued to deliver double-digit growth with strong performance across multiple verticals.

• Total revenue was $194.5 million in the second quarter of 2017, a 10 percent increase compared to the second quarter of 2016. Operating margin for Workforce Solutions was 45.7 percent in the second quarter of 2017 compared to 44.2 percent in the second quarter of 2016. Adjusted EBITDA margin for Workforce Solutions was 51.2 percent in the second quarter of 2017 compared to 50.2 percent in the second quarter of 2016.

• Verification Services revenue was $130.3 million, up 19 percent when compared to the second quarter of 2016.

• Employer Services revenue was $64.2 million, down 5 percent when compared to the second quarter of 2016.

Global Consumer Solutions revenue declined in the quarter.

• Revenue was $98.9 million, an 8 percent decrease compared to the second quarter of 2016 and down 7 percent on a local currency basis. Operating margin was 27.7 percent compared to 24.0 percent in the second quarter of 2016. Adjusted EBITDA margin was 31.0 percent compared to 26.4 percent in the second quarter of 2016.

Third Quarter 2017 and Full Year 2017 Outlook

We are off to a strong start through the first half of 2017. For the third quarter, at current exchange rates, we expect revenue to be between $853 and $861 million, reflecting growth of 6-7 percent, with limited foreign exchange impact. Adjusted EPS is expected to be between $1.50 and $1.54 which is up 4 percent to 7 percent, also with limited foreign exchange impact.

We expect full year 2017 revenue to be between $3.395 and $3.425 billion, reflecting constant currency growth of approximately 9 percent. Adjusted EPS for the year is expected to be between $6.02 and $6.10, which is up approximately 10 percent.