September 13, 2011

Equifax Inc. 

 

 - 33 - 

TALX Revenue by Business Unit ($MM) 

Tax and Talent 

Management

47%

The Work 

Number

53%

 

 

The Work Number (TWN Services) (53% of TALX Revenues) 

TWN Services include employment, income and social security number verification services and 

complementary services which include W-2 management services (initial, reissue and correction of W2 forms). 

Other services include paperless pay and paperless new hire services. TWN Services also provide I-9 

management services designed to help clients electronically comply with the immigration laws that require 

employers to complete an I-9 form for each new hire.   

The Work Number is the Crown jewel of the TALX segment thanks to the Work Number Database 

(TWN Database) that contained approximately 220 million current and historic employment records as of 

December 31, 2010. The TWN Database receives its data from over 2,400 organizations including over half of 

Fortune 500 companies that regularly update the database. The data is used to provide employment 

verifications to third party verifiers who are charged a fee on a per transaction basis. The Company has not 

experienced significant turnover in the employer contributors to the TWN database because Equifax’s 

verification service frees them from the administrative burden and expense of responding to third party 

employment verification results. The TWN database has expanded by 50% over the past 4 years and contains 

49 million active records used for employment and income verification that no other competitor comes close to 

matching. The following chart illustrates the growth of the Work Number database.  

Continuous, Strong Growth of the Work Number Database 

 

Source: Company presentation, August 2011 

$209.1 

$186.5 

Total TALX Revenue: $395.6 

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Equifax Inc. 

 

 - 34 - 

Tax and Talent Management Services (47% of TALX Revenues) 

The tax and talent management provide a broad range of human resource related services including 

unemployment tax management and services associated with recruiting and onboarding new employees of 

corporate and government agencies.   

Recent Results – TALX 

TALX 

  

  

  

  

% Change 

     

  

  

 

2008 2009 2010 

2009  

vs.  

2008 

2010 

vs.  

2009 

 

 

 

6 Mos.  

2010 

6 Mos. 

2011 

%  

Change

Operating Revenues: 

  

  

  

  

  

     

  

  

The Work Number 

$131.9 

$158.2 

$209.1 

19.9% 

32.2%    

$99.7 

$103.5 

3.8%

Tax and Talent Management $173.2 $188.2 $186.5 8.7% -0.9%  

 

$94.6 $92.2 -2.5%

TALX 

Operating 

Revenue: $305.1 $346.4 $395.6  13.5% 14.2%  

  $194.3 $195.7 

0.7%

  

  

  

  

  

  

     

  

  

TALX Operating Income 

$53.1 

$75.4 

$92.1 

42.0% 

22.1%    

$44.5 

$42.5 

-4.5%

TALX Operating Margin 

17.4% 

21.8% 

23.3%    

  

  

22.9% 21.7% 

  

 

Revenue growth in The Work Number increased by 4% during the first half of 2011 as double-digit 

growth in the Company’s traditional employment-based verification services and complementary services was 

partially offset by weakness in government-based tax transcript verifications. Meanwhile, revenue growth in 

Tax and Talent Management declined by 3% during the first half of 2011. The lower revenue was attributed to 

declines in the Talent Management services business reflecting decreased government hiring at the 

Transportation Security Administration (TSA) and reduced licensing revenue, partially offset by modest 

revenue growth in the Tax Management Business. Segment operating margins were adversely impacted 

during the first half of 2011 by 120 basis points reflecting declines within Talent Management and higher 

personnel related expenses.  

North America Personal Solutions (PSOL)  

The Company’s personal solutions products give consumers information to make financial decisions 

and monitor credit, credit score and identity information through Equifax Complete, ID Patrol, Credit Watch and 

Score Watch monitoring products. The Company’s products are available to consumers directly and through 

their relationships with business partners who distribute products or provide these services to their employees 

or customers. The PSOL segment now generates ~75% of its revenues from subscription-based products, up 

from 27% in 2005.  

PSOL – Recent Results  

North America Personal Solutions

 

  

  

  

  

% Change 

     

  

  

 

2008 2009 2010 

2009 

vs.  

2008 

2010 

vs.  

2009 

 

 

6 Mos.  

2010 

6 Mos. 

2011 

%  

Change 

  

  

  

  

  

  

     

  

  

PSOL Operating Revenues 

$162.6 

$149.0 

$157.6 

-8.4% 

5.8%    

$80.0 

$89.6 

12.0% 

  

  

  

  

  

  

     

  

  

PSOL Operating Income 

$46.3 

$34.3 

$44.6 

-25.9% 

30.0%    

$20.2 

$25.2 

24.8% 

PSOL Operating Margin 

28.5% 

23.0% 

28.3%    

  

  

25.3% 28.1% 

  

 

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