Equifax Inc (NYSE:EFX) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET

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Equifax Inc (NYSE:EFX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Equifax Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]

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

Executive
John W. Gamble

Thanks, and good morning. Welcome to today's conference call. I'm John Gamble, Chief Financial Officer. With me today is Mark Begor, Chief Executive 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 full year 2020 guidance to help you understand Equifax and its business environment. These statements involve a number of risks, uncertainties and other factors that could cause us -- 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 that affect the comparability of our underlying operational performance. For the fourth quarter of 2019, adjusted EPS attributable to Equifax excludes accruals for legal matters related to the 2017 cybersecurity incident, costs associated with acquisition-related amortization expense, the income tax effects of stock awards recognized upon vesting or settlement and foreign currency losses for remeasuring the Argentinean peso-denominated net monetary assets.

Adjusted EPS attributable to Equifax also includes legal and professional fees related to the 2017 cybersecurity incident, principally fees related to our outstanding litigation and government investigations, as well as the incremental non-recurring project cost designed to enhance our technology and data security. This includes projects to implement systems and processes to enhance our technology and data security infrastructure, as well as 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 2019 and are expected to occur in 2020 and 2021.

Adjusted EBITDA is defined as net income attributable to Equifax, adding back interest expense, net of interest income, income tax expense, depreciation and amortization. And also, as is the case for adjusted EPS, excluding accruals for legal matters related to the 2017 cybersecurity incident, costs related to the 2017 cybersecurity incident and foreign currency losses from remeasuring the Argentinean peso-denominated net monetary assets. These non-GAAP measures are detailed in reconciliation tables which are included in our earnings release and are also posted on our website.

I would also like to welcome back Jeff Dodge, who will be rejoining us for the next several months until Trevor Burns returns from his medical leave. Mark and I would like to thank Jeff for stepping back in, it is greatly appreciated and Jeff has joined us today.

Now I'd like to turn it over to Mark.

Executive
Mark W. Begor

Thanks, John,