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

"During the third quarter, we continued to make good progress on our transformation as we invest heavily in our infrastructure towards our goal of being an industry leader in technology and data security. These investments will enhance our ability to deliver unique data and insights to our customers to help them grow," said Mark W. Begor, Chief Executive Officer of Equifax. "Third quarter was another step forward as we work towards returning to our normal growth mode. Our financial results in the quarter showed solid progress but were impacted by currency and the slowing U.S. mortgage market and international markets."

Financial Results Summary

The company reported revenue of $834.2 million in the third quarter of 2018, flat compared to the third quarter of 2017 and up 2 percent on a local currency basis.

Net income attributable to Equifax of $38.4 million was down 60 percent compared to the third quarter of 2017.

Third quarter diluted EPS attributable to Equifax was $0.32, down 60 percent compared to the third quarter of 2017.

USIS third quarter results

• Total revenue was up slightly at $308.3 million in the third quarter of 2018 compared to $307.7 million in the third quarter of 2017. Operating margin for USIS was 30.9 percent in the third quarter of 2018 compared to 42.1 percent in the third quarter of 2017. Adjusted EBITDA margin for USIS was 46.2 percent in the third quarter of 2018 compared to 49.2 percent in the third quarter of 2017.

• Online Information Solutions revenue was $222.4 million, up 1 percent compared to the third quarter of 2017.

• Mortgage Solutions revenue was $39.0 million, up 1 percent compared to the third quarter of 2017.

• Financial Marketing Services revenue was $46.9 million, down 2 percent compared to the third quarter of 2017.

International third quarter results

• Total revenue was $235.0 million in the third quarter of 2018, down 2 percent and up 5 percent compared to the third quarter of 2017 on a reported and local currency basis, respectively. Operating margin for International was 8.2 percent in the third quarter of 2018, compared to 22.0 percent in the third quarter of 2017. Adjusted EBITDA margin for International was 29.4 percent in the third quarter of 2018, compared to 33.2 percent in the third quarter of 2017.

• Asia Pacific revenue was $80.5 million, down 1 percent compared to the third quarter of 2017 and up 7 percent on a local currency basis.

• Europe revenue was $68.5 million, down 1 percent compared to the third quarter of 2017 and flat on a local currency basis.

• Latin America revenue was $48.7 million, down 11 percent compared to the third quarter of 2017 and up 7 percent on a local currency basis.

• Canada revenue was $37.3 million, up 6 percent compared to the third quarter of 2017 and up 11 percent on a local currency basis.

Workforce Solutions third quarter results

• Total revenue was $202.2 million in the third quarter of 2018, a 9 percent increase compared to the third quarter of 2017. Operating margin for Workforce Solutions was 38.1 percent in the third quarter of 2018 compared to 43.1 percent in the third quarter of 2017. Adjusted EBITDA margin for Workforce Solutions was 47.5 percent in the third quarter of 2018 compared to 48.6 percent in the third quarter of 2017.

• Verification Services revenue was $143.9 million, up 11 percent compared to the third quarter of 2017.

• Employer Services revenue was $58.3 million, up 3 percent compared to the third quarter of 2017.

Global Consumer Solutions third quarter results

• Revenue was $88.7 million in the third quarter of 2018, down 12 percent compared to the third quarter of 2017 on a reported and local currency basis. Operating margin was 13.8 percent in the third quarter of 2018 compared to 24.5 percent in the third quarter of 2017. Adjusted EBITDA margin was 28.3 percent compared to 27.9 percent in the third quarter of 2017.

Adjusted EPS and Adjusted EBITDA margin

• Adjusted EPS attributable to Equifax was $1.41 in the third quarter of 2018, down 8 percent compared to the third quarter of 2017. This financial measure for 2018 excludes the foreign currency impacts from Argentina being a highly inflationary economy and a legal settlement. The financial measure for both 2018 and 2017 excludes cybersecurity incident related costs, 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 33.0 percent in the third quarter of 2018, compared to 37.4 percent in the third quarter of 2017. This financial measure for 2018 and 2017 has been adjusted for certain items, including costs related to the cybersecurity incident and a legal settlement as well as the foreign currency impacts from Argentina being a highly inflationary economy, which affect the comparability of the underlying operational performance and are described more fully in the attached Q&A.

Fourth quarter and full year guidance

• For the fourth quarter of 2018, we expect reported revenue to be between $835 and $850 million, reflecting local currency growth as compared to the fourth quarter of 2017 of 2% to 4%, partially offset by an expected 2.5% negative impact of foreign exchange. Adjusted EPS is expected to be between $1.30 and $1.35 per share. The impact of foreign exchange on adjusted EPS compared to the fourth quarter of 2017 is expected to be negative $0.04 per share.

• We expect full year 2018 reported revenue to be between $3.412 and $3.427 billion, reflecting local currency growth as compared to 2017 of 2.2% and 2.7%, partially offset by an expected 0.75% negative impact of foreign exchange. Adjusted EPS is expected to be between $5.70 and $5.75 per share. The impact of foreign exchange on adjusted EPS compared to 2017 is expected to be negative $0.10 per share.