Good day and welcome to the Equifax First Quarter Earnings Release Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Jeff Dodge. Please go ahead, sir.

Good morning, welcome to today's conference call. I'm Jeff Dodge, Investor Relations. With me today are Rick Smith, our Chairman and Chief Executive Officer; and Lee Adrean, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the Investor Center of our website at www.equifax.com. During this call, we will be making certain forward-looking statements to help you understand Equifax and its business environment. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Certain risk factors inherent in our businesses are set forth in filings with the SEC, including our 2008 Form 10-K and subsequent filings. We will also refer to several non-GAAP financial measures for Equifax consolidated in the first quarter of 2009. These measures include adjusted net income, adjusted operating income, and adjusted operating margin. These measures determine net income, operating income, and operating margin by adjusting for certain items indicated in sections A and B of the non-GAAP financial measures reconciliation attachment to our earnings release. We also provide adjusted diluted EPS, which adjusts for acquisition-related amortization in the items just noted. We will also present operating results excluding the impact of foreign exchange so that you will have a clear understanding of the fundamental business operations. Please see the sections of our earnings release entitled Reconciliation of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures; for further details, and the non-GAAP reconciliations posted in the Investor Center on our website. Now I would like to turn it over to Rick.

Thanks, Jeff. Good morning, everyone. The first quarter results in our opinion were solid. The team did I think a very good job on many fronts and we actually exited the quarter with some good momentum. I will talk about that momentum and similar highlights in a little bit. Total revenue for the quarter was $452.9 million up 1% on a reported basis, 2% in constant dollars over the fourth quarter of last year and slightly ahead of our expectation when we last reported our earnings. Adjusted operating margin was 24.5% and the adjusted EPS was $0.58 [a year]. As I traditionally, we will go through some highlights first by business unit and then I will get into some enterprise-wide highlights. So, I can start with USCIS. They benefited from above average growth in the mortgage refinancing. Obviously, a nice little boom there in the first quarter. That offset some of the softness we had in other lending activities. Banks as you might guess are increasingly focused on how our unique data assets can help them in the risk management activities. We recently won a very exciting piece of new business with a top five card issuer. This card issuer now is integrating the attribute from the Work Number into the monthly portfolio review process. It's a very creative approach where we deliver unique data attributes that will improve their decisioning on existing account holders and deliver solid revenue for Equifax. This is something that we have been working on now for a number of months. It's exciting for them because we help solve some great new problems they have and it's exciting for us again because it's going to be a nice revenue producer for us going forward. For another top-five bank we received verbal approval on opportunity that…

Thanks, Rick and good morning, everyone. This morning all financial information I will be discussing is presented on a GAAP basis except as otherwise noted. You should also refer to the Q&A and non-GAAP reconciliations attached to our earnings press release for additional information. Our first quarter performance was solid and exceeded the expectations we had at the time we last reported our earnings. For the quarter, consolidated revenue of $452.9 million was down 10% compared to the first quarter of 2008. Changes in foreign exchange rate unfavorably impacted revenue by $28.1 million. Compared to the fourth quarter of 2008, reported revenue was up 1% and constant dollar revenue was up 2% slightly ahead of our expectations. During the quarter, we recorded an $8.4 million restructuring charge to cover severance expense as we took further steps to reduce overall headcount and operating expenses in the current business environment. Operating income was $102.7 million. Excluding the restructuring charge, operating income for the quarter was a $111.1 million down 4% from the fourth quarter and down 12% from the first quarter of 2008. Operating margin was 22.7% in the quarter and 24.5% excluding the restructuring charge down slightly from the first quarter of 2008. Net income was $54.4 million down 17% from the first quarter of 2008 driven primarily by the restructuring charge and the impact of foreign currency translation. Diluted earnings per share for the quarter, was $0.43 down from $0.50 in 2008. Excluding the impact of acquisition related intangible amortization and the restructuring charge, adjusted earnings per share a non-GAAP measure was $0.58 per share down 4% from $0.60 in the first quarter of 2008. We repurchased 400,000 shares during the quarter for a total of $9.1 million and we reduced debt during the quarter by $18 million. Turning to…

Thanks Lee. Well, the first quarter, continued with many of the same challenges we experienced towards the middle to latter half of last year, while the environment has generally not improved, I believe it's starting to stabilize. We will continue to address the challenges we face, but also to keep our eye on the future, and its business opportunities. If you’ll agree, we've got a strong and resilient business model, with a strong balance sheet. We are also making important investments in new products that will create new sources of revenue growth, and further diversify our revenue base. The power of our unique data assets, including the Work Number, along with our analytical and decisioning platforms, will help our customer solve more business problems, and further benefit our shareholders. For the second quarter 2009, assuming the current levels of domestic and international business activity and current exchange rates, our consolidated revenue is expected to be comparable to slightly up, when compared to the first quarter of 2009, and at the current exchange rates, a negative estimated impact of the weakening dollar on revenues, when compared to the second quarter of 2008, is expected to be between 28 million and 29 million, and our adjusted EPS for the second quarter is expected to be between $0.55 and $0.60 a share. And as we always do, now, operator, we'd like to open it up for questions.

(Operator Instructions). We'll go first to Carter Malloy, Stephens, Inc.

Thanks for taking my questions. First, just quickly on PSOL margins being down so much in the quarter. You said it was because of TV ads, so should we expect the margins to stay down in this range going forward?

Carter, this is Rick. I think I get the essence of your question kind of cutting it out. If the question was should you expect PSOL margin to continue these levels throughout the year, no. We tend to have advertising in PSOL in general terms, not just TV advertising but the heavier piece of advertising is front-end loaded. So you get the benefit throughout the year. So our margins are lowest in the first quarter they ramp up throughout the year.

And then on the Work Number, great quarter there, happy to see that the number upward is. You are talking about the new wins, is the upside from those new wins and it sound like they weren't yet in the numbers? So I just wanted to understand where the strength came from specifically this quarter and if those new wins were in there help big maybe, if you had a –

I am not going to quantify them. They are going to be big but I am not going to give you the numbers. I had look at this, the Work Number is broad based. The growth is broad based. The Work Number is during everything we expect it. On a score growth we pose I think I said 15 cross sell opportunities, we were close to 10 at cross sell last year. So the things we closed last year give you revenue this year, the thing you close in the first quarter give you incremental revenue in the first quarter that will bill throughout the year.

Do you guys see that as a competitive advantage for the (inaudible) do adopt Work Number?

Absolutely. I see it as a competitive advantage on many fronts. I talked about it briefly as a differentiator in the mortgage base. It is a clear [trader] in the portfolio review. So yes, we are looking at this as a massive differentiator versus the core credit there.

I guess the better question I should have asked is, will the other competitors see it in the same way, sp that it drives more rapid adoption from the rest of the guys out there?

Again you cut out a little bit, Carter. Please repeat that question again.

I'm sorry. I guess the better way I should have asked that question is do you think the competitors will see it as the same type of competitive advantage and that'll drive them towards more rapid adoption?

Carter, you're breaking up. We're having difficulty understanding your question.

I'm sorry guys, I'm not sure if I'm talking through my headset here. I'm just thinking about it from a competitor's perspective. If I'm one of the other four big card issuers and I see another guy adopt it. Do you think that's going to drive?

Yes, absolutely. We have got activities going on with all the banks, all the card issuers and there is high level of interest across the board. It's just that the ones I mentioned today were the first two to fall in the first quarter of this year.

We'll take our next question from Andrew Jeffrey, SunTrust.

If I look at your corporate expense line, I mean it looks to me as though, I mean if we get the subset of SG&A, which is [corporate]. If I just look at adjust for the charge you took, I mean looks like you've continued to take a tremendous amount of expense out of the business more than I would have anticipated. Can you talk a little bit about the sources of some of those cost savings and just your overall comfort that as the market assuming it stays depressed ex-mortgage. As you continue to strip out costs, how can you be confident that you're not sort of cutting through fat and end up muscle and bone a little bit too?

Let me jump quickly on the first response, Andrew. Then I will have Lee, at my thoughts. Number one, specifically on the first quarter, we had a delay in equity grants out of the first quarter into the second quarter which reduced the corporate expense rate below its normal natural run rate. Lee can quantify that for you in a second. Number two is we'll continue to invest in growth at all times but I am convinced there is a lot more things we can do with lean, Andrew, specifically to take cost out drive efficiency across this company. We are ramping up. Lean, I think I told you before we launched about a year and half ago, great benefits in 2008. We are increasing our investment in lean more resources. We are bringing it to all parts of the company, all parts of the globe. So we are at the very early stages of reaping the financial benefits, the cost benefits, the process benefits out of lean. So that's a way of saying I don't think this, we are not close to the end yet on our ability to optimize this company's expense base. And number two, we will continue to invest in growth though. So, Lee, do you want to add to that?

I just said expectations at least. About a year ago we were running kind of $28 million to $30 million a quarter on the corporate line, brought that down. The fourth quarter was unusually low which we come in on at a time and the first quarter's probably unusually low for reasons that Rick mentioned. Our average for the next three quarters is probably in the $25 million or $26 million a quarter range down from what had been $28 million to $30 million a year ago. So we definitely have taken cost out but the fourth quarter and first quarter probably unusually low. And I think to your point about, obviously we are working to streamline where we can. We are working to be as efficient as we can. We don’t want to go so deep as to the concern you boys deserve. We are stripping too much such that we hurt ourselves in the longer run. We are trying to be very conscious of that and to continue to invest in the right things for future growth.

Then specifically on the USCIS operating margin, the margin declines seemed to have moderated a little bit sequentially. Assuming we see comparable level of volume declines in the second quarter, and then let's just, extrapolate out through the rest of the year, do you think you can hold the margin around this 36% level, or does it continue to decline with the falloff in volume?

Andrew, this is Rick. Yes, we've said all along that our plan is to hold the companywide margin, 24% to 26%, that goal remains. The only way we do that, is to make sure we hold USCIS in that 36% to 38% range.

So that's when you start to think about consolidated profitability, you continue to view the key lever as USCIS?

Correct.

We'll go next to Dan Levine with Robert W. Baird.

Great, thanks. Could you talk a little bit about the Work Number wins? Were those, the two big wins, were those already significant customers or is that a place where you are really significantly gaining share versus one of your competitors?

That's a great question. They are customers of Dann Adams, as USCIS business, they are brand new customers to Bill Canfield's Work Number team. So, as we said all along, we're looking at cross-sales, leveraging the customer base and Dann know so well to bring the Work Number in. So it's new for TALX, it's new for the Work Number, but they are existing customers for Dann. So the whole goal is, you get the foot in the door by selling the Work Number, providing value, generate immediate revenue, immediate profit and use that differentiated product as a way to gain core credit share. The example I gave you, is working already, is in mortgage.

And could you just talk about the revenue from those deals, will it all show up in the Work Number or will there be some split between USCIS and the Work Number?

That's a great question, Dan. It is some we're debating internally, because both teams make those sales happen. And I think what you will find out at the time, is both have a operational component to it as well. We will probably [exploit] that revenue in some capacity between USCIS and Bill's Work Number team.

Then just a follow-up on the previous question, Rick. You mentioned the equity grants delay, could you give us the actual number on that, for how much was pushed out of the first quarter that will show up in the second quarter?

Between $2.5 million and $3 million.

Then just last question, can you talk historically about the seasonality of expenses, what you see in terms of bump-up in 1Q related to payroll and so forth, and how we should think about that in the context of what you just did?

Say it one more time Dan, you cut out.

Just some natural seasonality with payroll expenses and so forth taking up in the first quarter, there is some natural uptick in expenses. Could you give us a sense of what -- the just pure seasonal aspect to that was, versus continued improvements on lean and so forth in terms of what happened in the quarter with expenses?

I guess we're trying to get to Dann. If we had a normalized first quarter corporate expense rate, is that what you are saying?

Yeah. Seasonally, there is a natural kind of uptick in dollars from the fourth quarter to the first quarter. Could you just talk about what the size of that uptick is, and just kind of progress sequentially in terms of getting costs out of the business?

Yes. The key elements of the seasonal uptick are total, and I tend to look at constant dollars. Although, it's probably pretty close, even reported operating expense was up $11 million from Q4 to Q1. 8 million of that was in Personal Solutions, which reflects -- in the fourth quarter, we cut way back on our advertising, because consumers have shown they are not very responsive to our product offerings during the holiday season. It's after the holiday season, we see that pick up, so we pull back in our advertising. The bulk, if not all of that, step up in expense from Q4 to Q1 is advertising (inaudible). The other area, where you tend to see a pickup in expense is in the TALX business unit, operating expense up about $8 million, Q4 to Q1. And the biggest piece of that is our W-2 business, which is a seasonal business, predominantly in the first quarter, and it includes a reasonable amount of print mail cost. So it’s very direct expense. Those are the two key drivers of operating expense. If I wash those two out, I actually think our operating expense was down sequentially, reflecting many of the steps that we’ve taken with headcount and other efficiencies.

(Operator Instructions). We will go next to Michael Meltz, JPMorgan.

This is Dave Lewis for Michael. Just a couple of quick questions. On the expanded IBM deal, can you just provide a little color on the incremental cost savings in 2009 and 2010?

Well, I will start there, Dave. The contract renegotiation was far more than just cost. It was a strategic realignment to leverage far more, the resources they have globally, to add flexibility, speed, so we can innovate and bring new products to market at a much faster rate than we could in the past. So that was the heart of the deal. Yes, there was absolutely some cost savings, not just from the contract itself, but we actually brought more resources that were outsourced at one point in time, back in-house and the cost savings is largely a result of us leveraging their global resourcing capabilities in India. Lee, I’m not sure we want to actually quantify that benefit. So, Dave I will leave it at that.

The second question is for Lee, can you just give is your thoughts on [extra cases] for share buybacks going forward.

Yes, we said at the year end earnings release in the near-term we are going to focus the majority of free cash flow on debt reduction. Given obviously, the markets in the last 90 days seem to have stabilized. In fact for most of the last six weeks the sentiments have been pretty positive. We have all seen over the last year and half periods of positive sentiment followed by periods of extreme negative sentiment. We are still being very careful to manage our capital structure to ensure strategic flexibility going forward. So the bulk of our free cash flow will go to debt reduction. We will probably be looking at a minimum to offset the dilutive effect of share creep that does come from equity compensation programs. But in the near-term may not do much more than that. And I think that the first quarter is consistent with that. We may be upward down from that but it's a smallish number compared to it. But it's typically been a historic purchase rate.

Operator, we have time for one more line of questions.

We will take our final question from Jaime Brandwood with UBS.

Just a few questions if I may. I want to pick apart a little bit in more detail the other CIS division. First of all on the OCIS division, I guess you have now seen a quarter-on-quarter stability in terms of revenue. In terms of your other commentary OCIS hosting hopefully similar revenue in the coming quarter, would that expand to the online consumer information solution subdivision?

Yes.

I mean in terms of drivers for that is it surely about mortgage or you are seeing visibility in any other kind of contributors to the online consumer information solutions subdivision?

I'd say right now it's primarily mortgage. It's also Telco. Telco is not only stable, but growing.

Turning to your credit marketing services division, can you talk a little bit I think you gave the split there in terms of prescreen down 42%, portfolio review down 3%. With prescreen, do you feel you are [now] getting to a point where you're still seeing some sequential stability? I think you said you were down more than 60% from three years ago.

Yes. The short answer is yes, Jamie. I think that the prescreen business is kind of bottomed up.

On the portfolio review, why do you think you stopped seeing growth there. Is it just like you are lapping past year-on-year comps or is there something else going on there driving that revenue into year-on-year decline?

Say that again, Jamie.

The portfolio review piece I think you said was down 3% year-over-year. What's driven the decline there?

We have been up most quarters usually in the low-to-mid single digit rate of portfolio management. I'm not sure we see any particular trend that this quarter happens to be down 3% that's not a large number. I don't know that we pulled apart exactly what's driving it. I think we continue to expect that to be kind of modestly up in the [period] of time when acquisition activity continues to be declining.

Then just turning to the UK, quickly. I think you said that in the UK your volumes were down 13%, so, not far of the 15% volume decline which you saw in your core product in the US Are you starting to see any kind of beneficial pricing impact, as you've seen in the US, where I think you said your average revenue per transaction was up 2%?

We are not seeing the same effect at this point, and as I said one of the effects of our business in the US is the strength of our mortgage business and the refinancing activity. We are not as strong a player in the mortgage market in the UK, and have not seen that same level of mortgage refinancing activity either.

Let me just add to that Jaime, just in general terms, looking at the online UK. In general terms, the (inaudible) pricing of the UK has been relatively stable, a slight uptick in the first quarter 2009 sequentially, versus the fourth quarter 2008.

But your revenue in the UK then is broadly also down about 13% year-over-year?

Yes.

Okay. And then very lastly, I missed your commentary on Brazil. I am just wondering if you can just go over Brazil again, the growth that you saw there and how you see that business going forward?

My comment was on Brazil, it was good growth. We didn’t break the exact numbers out; we had good growth, continue to get more data from the banks into our database. Good growth in telcos. So overall, good performance. We remain bullish, Jaime, long term on Brazil.

Okay. Thanks very much Rick.

I would like to thank everybody for participating on the call, and if you have any additional questions we will be around to answer. Thanks again, and we will conclude the call.

Ladies and gentlemen that does conclude today’s conference. We appreciate your participation. You may disconnect at this time.