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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Q & A
Operator
Operator

Thank you. (Operator Instructions) And our first question will come from Manav Patnaik with Barclays.

Analyst
Manav Patnaik

Thank you. Good morning. Mark, just first on the legal settlement, can you just help frame for us the remaining cases like is this $690 million basically take care of, I don't know 90% of the issues so forth. Just wanted some color there.

Executive
Mark W. Begor

Yeah. Thanks, Manav. As you heard me earlier mention, we've -- we're not prepared to talk about which settlements are included in here and which are not, but we try to be clear that included the significant issues facing the Company. Our expectation is in the coming weeks, as I also mentioned earlier in the call, will have some real clarity around that once we finalize the discussions that are actively underway.

Executive
John W. Gamble, Jr.

And Manav, there will be quite a bit of disclosure in the 10-Q that will be filed later today.

Analyst
Manav Patnaik

Okay, got it. And then, John, if I could just follow-up on some color on the guidance in terms of the total M&A contribution, I know Mark just called out PayNet, but what was that contribution from M&A this quarter and then for the full year? I guess.

Executive
John W. Gamble, Jr.

Yeah, the contribution from M&A this quarter was relatively small, all right, really the most substantial contribution was DataX, and it's less than $5 million in the period. And then we had some other very small acquisitions in International and very small acquisitions in EWS, none of which were material in anyway.

Analyst
Manav Patnaik

And for the full year?

Executive
John W. Gamble, Jr.

For full year, we gave a -- for full year, we gave a view for PayNet. If you get into the second half, the substantial impact for Equifax of acquisitions is really just PayNet, because we start to wrap around that period in which we bought DataX as we get into early in the third quarter.

Executive
Mark W. Begor

I think I said Manav in my comments that we expect PayNet to add 1.5% to USIS in the second quarter.

Analyst
Manav Patnaik

Yeah. Got it. All right. Thank you, guys.

Executive
Mark W. Begor

Thanks.

Operator
Operator

We'll now hear from George Mihalos with Cowen.

Analyst
George Mihalos

Hey, good morning guys. And nice to see the progress on the settlement side. I guess maybe Mark, two things to kind of kick it off. First, you sounded upbeat about the pipeline, maybe you can provide a little bit more color of that vertical -- anything vertical specific or if you're having a lot more success, maybe leveraging the workforce and winning new business and then, I understand that financial marketing is probably going to be a bit choppier, but it's nice to see the 6% growth. Should we expect that to now be positive throughout the course of the year? Will there continue to be some variability?

Executive
Mark W. Begor

Yeah, I think on last one, that's one that I tried to be clear in my comments. First off, we were pleased to see that growth, which is really the first growth that we've had since the cyber incident in 2017. Those pipelines