<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 31, 1997
EQUIFAX INC.
(Exact name of registrant as specified in its charter)
GEORGIA 1-6605 58-0401110
(State or other juris- (Commission (I.R.S. Employer
diction of incorporation) File Number) Identification No.)
1600 PEACHTREE STREET, N.W.
ATLANTA, GEORGIA 30309
(Address of principal executive offices)
(404) 885-8000
(Registrant's telephone number, including area code)
Page 1 of 12
Exhibit Index on Page 4
<PAGE>
Item 5. Other Events
- ------ ------------
Equifax Inc. ("Equifax") will spin off its Insurance Services Group on
August 7, 1997, through a special dividend of all outstanding shares
of common stock of ChoicePoint Inc. ("ChoicePoint"), a wholly-owned
subsidiary, to Equifax shareholders of record on July 24, 1997.
Equifax shareholders will receive one share of ChoicePoint common
stock for every ten shares of Equifax common stock held and will
receive a cash payment in lieu of ChoicePoint fractional shares.
The two companies will be separated for accounting purposes on July
31, 1997, but the spinoff will occur upon the distribution of the
ChoicePoint common stock on August 7, 1997, when ChoicePoint will
become an independent company. Shares of ChoicePoint common stock
which have been traded on a "when issued" basis on the New York Stock
Exchange since July 25, 1997, under the symbol "CPS wi" will begin
trading on August 8, 1997, on the New York Stock Exchange under the
symbol "CPS." Equifax common stock will continue to be traded on the
New York Stock Exchange under the symbol "EFX."
The current Equifax board Chairman, C. B. Rogers, Jr., will serve as
Chairman of the Board of ChoicePoint for a transitional period after
the spinoff. In addition to Mr. Rogers, four of the other seven
persons comprising the ChoicePoint Board of Directors currently serve
or have served on the Equifax Board of Directors. Three of these
persons (Ron D. Barbaro, Tinsley H. Irvin and Derek V. Smith) have
resigned from the Equifax Board leaving two common Board members (C.
B. Rogers, Jr. and D. W. McGlaughlin) for a transitional period.
Attached hereto as Exhibit 99 are pro forma consolidated financial
data and restated historical consolidated statements of income of
Equifax Inc. which include:
(i) Unaudited pro forma consolidated statements of income for the
quarter ended March 31, 1997 and the year ended December 31,
1996
(ii) Unaudited pro forma consolidated balance sheet as of March 31,
1997
(iii) Notes to unaudited pro forma consolidated financial data
(iv) Unaudited restated historical consolidated statements of income
for the years ended December 31, 1996, 1995, 1994, 1993 and
1992, and for each of the three month periods ended March 31,
1997, March 31, 1996, June 30, 1996, September 30, 1996, and
December 31, 1996.
Page 2 of 12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned hereunto duly authorized.
EQUIFAX INC.
(Registrant)
Date: August 1, 1997 By:/s/ D.W. McGlaughlin
------------------------------
D. W. McGlaughlin
President and Chief
Executive Officer
Page 3 of 12
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Index Number Description of Exhibit Page Number
------------ ---------------------- -----------
<S> <C> <C>
99(a) Unaudited pro forma consolidated statements of
income for the quarter ended March 31, 1997 and 6
the year ended December 31, 1996
99(b) Unaudited pro forma consolidated balance sheet 8
as of March 31, 1997
99(c) Notes to pro forma consolidated financial data 9
(unaudited)
99(d) Restated historical consolidated statements of
income for the years ended December 31, 1996, 10
1995, 1994, 1993 and 1992, and for each of the
three month periods ended March, 31, 1997;
March 31, 1996; June 30, 1996; September 30,
1996; and December 31, 1996.
</TABLE>
Page 4 of 12
<PAGE>
EXHIBIT 99
PRO FORMA CONSOLIDATED FINANCIAL DATA
The following unaudited pro forma consolidated statements of income for the
quarter ended March 31, 1997 and the year ended December 31, 1996 and the
unaudited pro forma consolidated balance sheet as of March 31, 1997 present the
consolidated results of operations and consolidated financial position of
Equifax Inc. assuming that the transactions contemplated by the spinoff had
occurred as of the beginning of 1996 and as of March 31, 1997 respectively. In
the opinion of management, they include all material adjustments necessary to
reflect, on a pro forma basis, the impact of material transactions contemplated
by the spinoff on Equifax's historical financial information. The adjustments
are described in Note 2 of the Notes to the Pro Forma Consolidated Financial
Data (Unaudited) and are referenced in the "Pro Forma Adjustments" column of the
financial statements. This pro forma consolidated financial data should be read
in conjunction with the financial statements and the notes thereto included in
the Company's Annual Report on Form 10-K for the year ended December 31, 1996
and in the Company's Quarterly Report on Form 10-Q for the period ended March
31, 1997.
Page 5 of 12
<PAGE>
EXHIBIT 99(a)
EQUIFAX INC.
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Quarter ended March 31, 1997
---------------------------------------------
Pro Forma
(In thousands, except per share amounts) Historical Adjustments Pro Forma
- ---------------------------------------- ---------- ----------- ---------
<S> <C> <C> <C>
Operating revenue $ 478,200 $(166,138)(2a) $ 312,062
--------- --------- ---------
Operating costs and expenses
before unusual items 397,466 (153,951)(2a) 243,515
Unusual items - - -
--------- --------- ---------
Total costs and expenses 397,466 (153,951) 243,515
--------- --------- ---------
Operating income 80,734 (12,187) 68,547
Other income, net 383 (11)(2a) 372
Interest expense 6,088 (1,619)(2a) 4,469
--------- --------- ---------
Income before income taxes 75,029 (10,579) 64,450
Provision for income taxes 30,312 (4,403)(2a) 25,909
--------- --------- ---------
Net income $ 44,717 $ (6,176) $ 38,541
========= ========= =========
Weighted average common shares outstanding 145,176 145,176 145,176
Net income per common share $ 0.31 $ (0.04) $ 0.27
========= ========= =========
</TABLE>
Page 6 of 12
<PAGE>
EXHIBIT 99(a)
EQUIFAX INC.
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Year ended December 31, 1996
----------------------------------------------
Pro Forma
(In thousands, except per share amounts) Historical Adjustments Pro Forma
- ---------------------------------------- ----------- ------------ ----------
<S> <C> <C> <C>
Operating revenue $ 1,811,223 $(588,425)(2a) $ 1,222,798
----------- --------- -----------
Operating costs and expenses
before unusual items 1,496,492 (540,595)(2a) 955,897
Unusual items 10,313 - 10,313
----------- --------- -----------
Total costs and expenses 1,506,805 (540,595) 966,210
----------- --------- -----------
Operating income 304,418 (47,830) 256,588
Other income, net 22,181 219 (2a) 22,400
Interest expense 23,036 (6,597)(2a) 16,439
----------- --------- -----------
Income before income taxes 303,563 (41,014) 262,549
Provision for income taxes 125,946 (16,494)(2a) 109,452
----------- --------- -----------
Net income $ 177,617 $ (24,520) $ 153,097
=========== ========= ===========
Weighted average common shares outstanding 145,518 145,518 145,518
Net income per common share $ 1.22 $ (0.17) $ 1.05
=========== ========= ==========
</TABLE>
Page 7 of 12
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT 99(b)
EQUIFAX INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31, 1997
--------------------------------------------------------
Pro Forma
(In thousands) Historical Adjustments Pro Forma
- ---------------------------------------------------- --------------- ----------------- -----------------
ASSETS
<S> <C> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 48,405 $ (4,471) (2a) $ 43,934
Accounts receivable 305,906 (88,635) (2a) 217,271
Deferred income tax assets 34,964 (4,753) (2a) 30,211
Due from ChoicePoint - 92,593 (2a) -
(13,000) (2c)
( 79,593) (2d)
Other current assets 56,118 (10,894) (2a) 45,224
Total current assets 445,393 (108,753) 336,640
---------- ---------- ----------
PROPERTY AND EQUIPMENT:
Land, buildings and improvements 33,963 (11,435) (2a) 22,528
Data processing equipment and furniture 264,193 (70,704) (2a) 193,489
---------- ----------- ----------
298,156 (82,139) 216,017
Less accumulated depreciation (161,916) 43,504 (2a) (118,412)
136,240 (38,635) 97,605
---------- ----------- ----------
GOODWILL 471,319 (121,309) (2a) 350,010
---------- ----------- ----------
PURCHASED DATA FILES 100,888 - 100,888
---------- ----------- ----------
OTHER ASSETS 214,185 (50,217) (2a) 163,968
---------- ----------- ----------
$ 1,368,025 $ (318,914) $1,049,111
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURENT LIABILITIES:
Short-term debt and current maturities of long-term debt $ 76,349 $ (864) (2a) $ 75,485
Accounts payable 86,715 (13,537) (2a) 73,178
Accrued salaries and bonuses 29,400 (9,791) (2a) 19,609
Income taxes payable 24,362 (457) (2a) 23,905
Other current liabilities 168,097 (23,616) (2a) 144,481
Total current liabilities 384,923 (48,265) 336,658
--------- -------- --------
LONG-TERM DEBT , LESS CURRENT MATURITIES 331,762 (872) (2a) 222,297
(29,000) (2b)
( 79,593) (2d)
---------- --------- --------
POSTRETIREMENT BENEFIT OBLIGATIONS 79,572 (55,650) (2a) 23,922
--------- --------- --------
LONG-TERM DEFERRED REVENUE 40,555 - 40,555
---------- --------- --------
OTHER LONG-TERM LIABILITIES 75,220 (3,660) (2a) 71,560
--------- --------- --------
SHAREHOLDERS' EQUITY:
Common stock 214,244 - 214,244
Paid-in capital 217,131 - 217,131
Retained earnings 428,527 (117,962) (2a) 326,565
29,000 (2b)
(13,000) (2c)
Cumulative foreign currency translation adjustment (9,059) 88 (2a) (8,971)
Treasury stock (330,283) - (330,283)
Stock held by employee benefits trusts (64,567) - (64,567)
--------- --------- --------
Total shareholders' equity 455,993 (101,874) 354,119
$1,368,025 $ (318,914) $1,049,111
========= ========= =========
</TABLE>
Page 8 of 12
<PAGE>
EXHIBIT 99(c)
EQUIFAX INC.
NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
NOTE 1. The accompanying unaudited Pro Forma Consolidated Financial Data
reflects all adjustments that, in the opinion of management, are necessary to
present fairly the pro forma financial position and pro forma results of
operations.
NOTE 2. Following are explanations of the pro forma adjustments to the
accompanying pro forma consolidated financial data:
(a) To reflect the elimination of the historical operations and net assets of
the Insurance Services business segment (ChoicePoint), and to record the
dividend of the net assets of ChoicePoint to Equifax shareholders.
(b) To reflect a $29.0 million assumption of Equifax debt by ChoicePoint.
(c) To reflect a $13.0 million capital contribution by Equifax to ChoicePoint,
thereby decreasing ChoicePoint's intercompany liability accordingly. This
contribution was made in exchange for ChoicePoint's assumption of an
estimated $13.0 million liability related to future employee benefit
payments.
(d) Represents the payment by ChoicePoint of its final intercompany liability
due to Equifax, and assumes this repayment would be used by Equifax to
reduce debt.
NOTE 3. Other than to eliminate ChoicePoint's historical operations, no pro
forma adjustment was made to operating costs and expenses since management
believes that costs previously allocated to ChoicePoint will not be materially
different from Equifax's reduced operating costs following the spinoff.
Interest expense has also not been adjusted, since the amount of interest
previously allocated to ChoicePoint by Equifax will not materially differ from
the interest reduction associated with ChoicePoint's payment of its
intercompany liability subsequent to the spinoff.
Page 9 of 12
<PAGE>
EXHIBIT 99(d)
RESTATED HISTORICAL CONSOLIDATED STATEMENTS OF INCOME
The following unaudited consolidated statements of income for the years ended
December 31, 1996, 1995, 1994, 1993 and 1992, and for each of the three month
periods ended March 31, 1997, March 31, 1996, June 30, 1996, September 30, 1996
and December 31, 1996 have been prepared from the historical statements of
Equifax Inc., but have been restated to show ChoicePoint as a discontinued
operation. This financial data should be read in conjunction with the financial
statements and the notes thereto included in the Company's Annual Report on Form
10-K for the year ended December 31, 1996 and in the Company's Quarterly Report
on Form 10-Q for the period ended March 31, 1997.
Page 10 of 12
<PAGE>
EXHIBIT 99(d)
EQUIFAX INC.
RESTATED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
----------------------------------------------------------------
(In thousands, except per share amounts) 3-31-97 3-31-96 6-30-96 9-30-96 12-31-96
- ---------------------------------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Operating revenue $312,062 $287,137 $300,812 $302,712 $332,137
-------- -------- -------- -------- --------
Operating costs and expenses
before unusual items 243,515 230,147 238,657 235,412 251,681
Unusual items - - 10,313 - -
-------- -------- -------- -------- --------
Total costs and expenses 243,515 230,147 248,970 235,412 251,681
-------- -------- -------- -------- --------
Operating income 68,547 56,990 51,842 67,300 80,456
Other income, net 372 376 9,036 754 12,234
Interest expense 4,469 3,664 3,571 4,191 5,013
-------- -------- -------- -------- --------
Income from continuing operations
before income taxes 64,450 53,702 57,307 63,863 87,677
Provision for income taxes 25,909 21,293 22,722 25,322 40,115
-------- -------- -------- -------- --------
Income from continuing operations 38,541 32,409 34,585 38,541 47,562
Income from discontinued operations,
net of income taxes 6,176 4,436 6,545 7,263 6,276
-------- -------- -------- -------- --------
Net income $ 44,717 $ 36,845 $ 41,130 $ 45,804 $ 53,838
======== ======== ======== ======== ========
Weighted average common shares outstanding 145,176 146,669 145,923 144,752 144,727
Per common share:
Income from continuing operations $ 0.27 $ 0.22 $ 0.24 $ 0.27 $ 0.33
Income from discontinued operations 0.04 0.03 0.04 0.05 0.04
-------- -------- -------- -------- --------
Net income $ 0.31 $ 0.25 $ 0.28 $ 0.32 $ 0.37
======== ======== ======== ======== ========
</TABLE>
Page 11 of 12
<PAGE>
Exhibit 99(d)
EQUIFAX INC.
RESTATED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Year ended December 31
------------------------------------------------------------------
(In thousands, except per share amounts) 1996 1995 1994 1993 1992
- ---------------------------------------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Operating revenue $1,222,798 $1,105,309 $968,660 $813,235 $724,030
---------- ---------- -------- -------- --------
Operating costs and expenses
before unusual items 955,897 883,405 770,779 649,135 584,204
Unusual items 10,313 (9,243) - 48,438 -
---------- ---------- -------- -------- --------
Total costs and expenses 966,210 874,162 770,779 697,573 584,204
---------- ---------- -------- -------- --------
Operating income 256,588 231,147 197,881 115,662 139,826
Other income, net 22,400 7,335 8,643 3,881 7,474
Interest expense 16,439 15,342 12,986 8,742 3,031
---------- ---------- -------- -------- --------
Income from continuing operations
before income taxes 262,549 223,140 193,538 110,801 144,269
Provision for income taxes 109,452 90,355 79,804 48,525 59,056
---------- ---------- -------- -------- --------
Income from continuing operations 153,097 132,785 113,734 62,276 85,213
Income from discontinued operations,
net of income taxes 24,520 14,865 6,612 1,239 133
---------- ---------- -------- -------- --------
Net income $ 177,617 $ 147,650 $120,346 $ 63,515 $ 85,346
========== ========== ======== ======== ========
Weighted average common shares outstanding 145,518 151,357 148,608 150,114 163,918
Per common share:
Income from continuing operations $ 1.05 $ 0.88 $ 0.77 $ 0.41 $ 0.52
Income from discontinued operations 0.17 0.10 0.04 0.01 0.00
---------- ---------- -------- -------- --------
Net income $ 1.22 $ 0.98 $ 0.81 $ 0.42 $ 0.52
========== ========== ======== ======== ========
</TABLE>
Page 12 of 12
