Equifax Inc. (NYSE:EFX) Q1 2019 Earnings Conference Call Transcript

May 10, 2019 • 08:30 am ET

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Equifax Inc. (NYSE:EFX) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Equifax First Quarter 2019 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the call over to Trevor Burns. Please go ahead.

Executive
Trevor Burns

Thanks, and good morning. Welcome to today's conference call. I'm Trevor Burns, Investor Relations. With me today are Mark Begor, Chief Executive Officer and John Gamble, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the Investor Relations section in the About Equifax tab of our website at www.equifax.com.

During this call, we will be making certain forward-looking statements, including second quarter and full year 2019 guidance, to help you understand Equifax and its business environment. These statements involve a number of risk factors, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Certain risk factors inherent in our business are set forth in filings with the SEC, including our 2018 Form 10-K and subsequent filings. Also, we will be referring to certain non-GAAP financial measures, including adjusted EPS attributable to Equifax and adjusted EBITDA, which will be adjusted for certain items affecting comparability of our underlying operational performance. For the first quarter of 2019, adjusted EPS attributable to Equifax excludes costs associated with the realignment of internal resources and other activities, acquisition-related amortization expense, the income tax effects of stock awards recognized upon vesting or settlement, and foreign currency losses from re-measuring the Argentinian peso denominated net monetary assets.

Adjusted EPS attributable to Equifax also excludes and accrue for legal matters related to the 2017 cybersecurity incident. Legal and professional fees related to the cybersecurity incident, principally fees related to our outstanding litigation and government investigations as well as the incremental non-recurring project costs designed to enhance our technology and data security. This includes projects costs to implement systems and processes to enhance our technology and data security infrastructure, as well as the projects to replace and substantially consolidate our global networks and systems, as well as the cost to manage these projects. These projects that will transform our technology infrastructure and further enhance our data security were incurred throughout 2018, and are expected to occur in 2019 and 2020.

Adjusted EBITDA as defined as net income attributable to Equifax, adding back interest expense, net of interest income, income tax expense, depreciation and amortization and also as the case for adjusted EPS, excluding an accrual for legal matters related to the 2017 cybersecurity incident, costs related to the 2017 cybersecurity incident, costs associated with the realignment of internal resources and other activities, and foreign currency losses from re-measuring the Argentinian peso denominated that net monetary assets. These non-GAAP measures are detailed in reconciliation tables, which are included with our earnings release and are also posted on our website.

In addition to the non-GAAP measures that we posted on our website, we will post after this call certain supplemental financial information on our website to better help you understand our business.