Equifax Inc. announced financial results for the quarter ended June 30, 2018.

"During the second quarter, we delivered solid results while continuing to make strong progress on our data security, IT, and consumer transformation. The Equifax team also made strong steps forward in rebuilding confidence with customers and partners," said Mark W. Begor, Chief Executive Officer of Equifax. "During the quarter, we intensified our focus on customers and partners to deliver the solutions from our unique data that allows them to more effectively grow and manage their business. We did this while continuing to make significant investments in our infrastructure toward our goal of being an industry leader in IT and data security. We will continue this focus for the remainder of 2018."

Financial Results Summary

The company reported revenue of $876.9 million in the second quarter of 2018, a 2 percent increase compared to the second quarter of 2017 on both a reported and local currency basis.

Net income attributable to Equifax of $144.8 million was down 12 percent compared to the second quarter of 2017.

Second quarter diluted EPS attributable to Equifax was $1.19, down 12 percent compared to the second quarter of 2017.

USIS second quarter results

• Total revenue was $324.6 million in the second quarter of 2018 compared to $331.9 million in the second quarter of 2017, a decrease of 2 percent. Operating margin for USIS was 38.9 percent in the second quarter of 2018 compared to 45.1 percent in the second quarter of 2017. Adjusted EBITDA margin for USIS was 47.7 percent in the second quarter of 2018 compared to 51.5 percent in the second quarter of 2017.

• Online Information Solutions revenue was $224.1 million, down 4 percent compared to the second quarter of 2017.

• Mortgage Solutions revenue was $45.5 million, up 18 percent compared to the second quarter of 2017.

• Financial Marketing Services revenue was $55.0 million, down 9 percent compared to the second quarter of 2017.

International second quarter results

• Total revenue was $250.3 million in the second quarter of 2018, up 8 percent compared to the second quarter of 2017 on a reported and local currency basis. Operating margin for International was 14.8 percent in the second quarter of 2018, compared to 19.9 percent in the second quarter of 2017. Adjusted EBITDA margin for International was 30.5 percent in the second quarter of 2018, compared to 30.9 percent in the second quarter of 2017.

• Asia Pacific revenue was $86.1 million, up 12 percent compared to the second quarter of 2017 and up 12 percent on a local currency basis.

• Europe revenue was $72.3 million, up 6 percent compared to the second quarter of 2017 and down 1 percent on a local currency basis.

• Latin America revenue was $54.2 million, up 2 percent compared to the second quarter of 2017 and up 15 percent on a local currency basis.

• Canada revenue was $37.7 million, up 13 percent compared to the second quarter of 2017 and up 8 percent on a local currency basis.

Workforce Solutions second quarter results

• Total revenue was $207.6 million in the second quarter of 2018, a 7 percent increase compared to the second quarter of 2017. Operating margin for Workforce Solutions was 40.4 percent in the second quarter of 2018 compared to 45.7 percent in the second quarter of 2017. Adjusted EBITDA margin for Workforce Solutions was 47.6 percent in the second quarter of 2018 compared to 51.2 percent in the second quarter of 2017.

• Verification Services revenue was $149.3 million, up 15 percent compared to the second quarter of 2017.

• Employer Services revenue was $58.3 million, down 9 percent compared to the second quarter of 2017.

Global Consumer Solutions second quarter results

• Revenue was $94.4 million in the second quarter of 2018, down 5 percent compared to the second quarter of 2017 on a reported and local currency basis. Operating margin was 20.1 percent in the second quarter of 2018 compared to 27.7 percent in the second quarter of 2017. Adjusted EBITDA margin was 31.0 percent compared to 31.0 percent in the second quarter of 2017.

Adjusted EPS and Adjusted EBITDA Margin

• Adjusted EPS attributable to Equifax was $1.56 in the second quarter of 2018, down 3 percent compared to the second quarter of 2017. This financial measure for 2018 excludes the cybersecurity incident related costs and adjustments from uncertain tax positions resulting from a recent settlement with tax authorities. The financial measure for both 2018 and 2017 excludes acquisition-related amortization expense, net of associated tax impacts and income tax effects of stock awards recognized upon vesting or settlement. These items are described more fully in the attached Q&A.

• Adjusted EBITDA margin was 35.0 percent in the second quarter of 2018, compared to 39.1 percent in the second quarter of 2017. These financial measures for 2018 and 2017 have been adjusted for certain items, including costs related to the cybersecurity incident, which affect the comparability of the underlying operational performance and are described more fully in the attached Q&A.

Third Quarter and Full Year Guidance

• For the third quarter of 2018, we expect reported revenue to be between $853 and $863 million, reflecting constant currency growth as compared to the third quarter of 2017 of 4 percent to 5 percent, partially offset by an expected 2 percent negative impact of foreign exchange. Adjusted EPS is expected to be between $1.39 and $1.44. The impact of foreign exchange on adjusted EPS compared to the third quarter of 2017 is expected to be negative $0.03 per share.

• We expect full year 2018 reported revenue to be between $3.425 and $3.525 billion, and adjusted EPS to be between $5.80 and $6.00 per share, both unchanged from our prior guidance. The impact of foreign exchange is now expected to negatively impact revenue by 1 percent and adjusted EPS by approximately $0.08 per share as compared to 2017