8-K

UNITED STATES

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): November 28, 2006

ChoicePoint Inc.

(Exact name of registrant as specified in its charter)

Georgia	001-13069	58-2309650
(State of Incorporation)	Commission File Number	(IRS employer identification no.)
1000 Alderman Drive Alpharetta, Georgia		30005
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: (770) 752-6000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 28, 2006, ChoicePoint Inc. (the “Company”) issued a press release announcing its Board of Directors’ decision to retain the Company’s marketing services business. A copy of this press release is being filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this item 2.02.

The press release presented non-GAAP financial information such as projected operating profit margins from continuing operations excluding other charges (which is not a measure of financial performance under generally accepted accounting principles), which the Company believes is useful for investors to compare the Company’s projected full-year 2006 results from continuing operations excluding the effect of other charges to prior years. This data is also used by the Company for assessment of its operating results.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release of ChoicePoint Inc., dated November 28, 2006.

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 by the undersigned hereunto duly authorized.

Date: November 28, 2006	CHOICEPOINT INC.
	By:	/s/ David E. Trine
		David E. Trine
		Chief Financial Officer (Principal Financial Officer)

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:	Carey Skinner	Chuck Jones
	Investor Relations	Media Calls
	(770) 752-3369	(770) 752-3594
	Carey.Skinner@choicepoint.com	Chuck.Jones@choicepoint.com

ChoicePoint® Announces Intention to

Retain ChoicePoint Precision Marketing

ALPHARETTA, GA – November 28, 2006 – ChoicePoint (NYSE: CPS) announced today its Board of Directors’ decision to retain the marketing services business. The company had announced in July 2006 its intention to divest this business as part of the company-wide strategic review. ChoicePoint Precision Marketing, a leading provider of direct marketing technologies and services, has approximately 670 employees in offices around the country.

“Despite our previously stated desire to divest this business, we have been unable to obtain a fair market price, particularly given the recent downturn in one of our leading customer segments, the mortgage market,” said company chairman and chief executive officer Derek V. Smith. “After considering our options it became clear to the Board that the best interests of our shareholders and customers were served by running this business as part of our continuing operations, rather than seeking to sell in the face of current market conditions.”

“Precision Marketing has long served its customers with superior direct marketing solutions and technologies,” said ChoicePoint Precision Marketing general manager Scott Hudson. “Based on recent discussions with our customers, I am convinced our clients fully support this decision.”

ChoicePoint continues to make significant progress overall in executing its strategic transformation as outlined in the various public filings of the company. ChoicePoint remains engaged in an active sales process regarding the other businesses that it previously announced its intention to divest.

As a result of this decision the company will begin reporting the results of its marketing services segment in continuing operations, beginning with its fourth quarter results. Restated quarterly segment results for 2005 and 2006 are included in this release and will be available on the company’s website, www.choicepoint.com.

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ChoicePoint is modifying its prior full year guidance for 2006 due solely to the reporting change and the previously announced reclassification of other businesses as discontinued operations beginning in the fourth quarter. The Company now expects 2006 full year internal revenue growth from continuing operations to be in the range of 3 to 4 percent, including mid single digit growth in the fourth quarter. Including the impact of acquisitions, total revenue growth is expected to be in the range of 4 to 5 percent for the full year 2006.

Additionally, the Company expects operating profit margins from continuing operations to be approximately 25 to 26 percent for the full year, including operating margins in the 24 to 25 percent range in the fourth quarter. These estimates exclude the impact of impairment charges, stock option expense, on-going legal expenses related to the previously-disclosed fraudulent data access, and operating charges related to the Company’s centralization of functions and consolidation of certain technology platforms. Operating profit margins from continuing operations including these expenses are projected to be approximately 12 to 13 percent for the full year.

About ChoicePoint

ChoicePoint Inc. (NYSE: CPS) is the leading provider of identification and credential verification services for making smarter decisions in a world challenged by increased risks. Serving the needs of business, government, non-profit organizations and individuals, ChoicePoint works to create a safer and more secure society through the responsible use of information while working diligently to protect personal privacy. For more information about ChoicePoint, visit the Company’s Web site at www.choicepoint.com.

Forward-Looking Statements

Certain written statements in this release and oral statements made by or on behalf of the Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Words or phrases such as “should result,” “are expected to,” “we anticipate,” “we estimate,” “we project,” or similar expressions are intended to identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, but are not limited to, the following important factors: the results of our ongoing review of fraudulent data access and other events, the impact of the Company’s decision to reclassify its Precision Marketing business as continuing operations, the impact of our decision to discontinue certain services, the results of our re-credentialing of customer accounts, the results of any litigation or government proceedings, the implementation of plans to divest various businesses resulting from our company-wide strategic review including unanticipated losses realized in connection with any such sales, demand for the Company’s services, product development, maintaining acceptable margins, maintaining our data supply, maintaining secure systems including personal privacy systems, ability to minimize system

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interruptions, ability to control costs, the impact of federal, state and local regulatory requirements on the Company’s business, specifically the direct marketing and public filings markets, privacy matters and any federal or state legislative responses to identify theft concerns, the impact of competition and customer consolidations, ability to continue our long-term business strategy including growth through acquisition, ability to attract and retain qualified personnel, and the uncertainty of economic conditions in general. Additional information concerning these and other risks and uncertainties is contained in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10–K for the year ended December 31, 2005 and Quarterly Reports on Form 10–Q for the quarters ended March 31, 2006, June 30, 2006, and September 30, 2006 (the “SEC Filings”). Readers are cautioned not to place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made, and the Company undertakes no obligation to publicly update these statements based on events that may occur after the date of this press release.

ChoicePoint Page 4 of 7 ChoicePoint Inc. Summary of Projections for the Fourth Quarter Ended December 31, 2006*
	Internal Revenue Growth		Operating Margins Excluding Other Operating Charges
	Previous Projection	Current Projection	Previous Projection	Current Projection
Insurance Services	Low double digits	Low double digits	Low 50% range	Low 50% range
Screening and Authentication Services	Mid to high single digits	Mid to high single digits	Low to mid 20% range	Low to mid 20% range
Financial and Professional Services	Negative low to mid single digits	Negative low single digits	Low to mid single digits	Mid single digits
Government Services	Mid single digits	Mid single digits	Low double digits	Low double digits
Marketing Services	N/A	Negative low double digits	N/A	Low to mid double digits
ChoicePoint Consolidated	Mid to high single digits	Mid single digits	26% range	24% - 25% range

Other Projections for the Year Ended December 31, 2006
	Previous Projection	Current Projection
Total revenue growth	5% - 7%	4% - 5%
Internal revenue growth	4% - 6%	3% - 4%
Operating margins excluding other operating charges	26% - 27% range	25% - 26% range
Corporate expenses for continuing operations	7% - 8% of total revenue	7% - 8% of total revenue
Tax rate	Approximately 38%	Approximately 38%
Stock option expense	$11 - $12 million, net of tax	$11 - $12 million, net of tax
Expenses related to the fraudulent data access	$3 - $4 million	$3 - $4 million
Re-platforming expense and centralization of functions	$14 - $15 million	$15 - $16 million
Net free cash flow from continuing operations, excluding costs associated with the fraudulent data access **	$140 - $160 million	$150 - $170 million
Capital expenditures	$70 - $80 million	$65 - $75 million
Cash flow from operating activities - continuing operations	$210 - $240 million	$215 - $245 million

* For a discussion of risks that may cause actual results to differ materially from these projections, please see the discussion under “Forward-Looking Statements” above, as well as the risk factors set forth in the SEC Filings.

** Net free cash flow from continuing operations, excluding costs associated with the fraudulent data access is calculated as cash from continuing operations less capital expenditures.

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ChoicePoint Inc.

2005 Segment Results - Continuing Operations

(Dollars in thousands)	Q1 2005			Q2 2005			Q3 2005			Q4 2005			Total 2005
Revenue
Insurance Services	$	98,560		$	100,963		$	104,775		$	98,555		$	402,853
Screening and Authentication Services		55,552			61,346			63,687			61,469			242,054
Financial and Professional Services		33,064			30,267			28,962			25,218			117,511
Government Services		31,080			29,981			35,326			32,971			129,358
Marketing Services		23,099			23,018			23,138			22,274			91,529
Royalty		797			526			954			121			2,398
Service Revenue		242,152			246,101			256,842			240,608			985,703
Reimbursable Expenses per EITF 01-14		6,543			6,623			7,480			7,411			28,057
Total Revenue	$	248,695		$	252,724		$	264,322		$	248,019		$	1,013,760
Operating Income
Insurance Services	$	54,204		$	55,282		$	57,906		$	54,278		$	221,670
Screening and Authentication Services		11,192			14,476			16,415			16,897			58,980
Financial and Professional Services		9,314			5,849			5,138			2,440			22,741
Government Services		5,363			2,208			6,487			5,268			19,326
Marketing Services		4,257			3,661			3,840			4,141			15,899
Royalty		770			325			506			121			1,722
Corporate & Shared Expenses (a)		(19,722	)		(18,183	)		(20,685	)		(17,633	)		(76,223	)
Operating Income before other charges		65,378			63,618			69,607			65,512			264,115
Other operating charges (b)		(5,412	)		(6,040	)		(4,006	)		(13,315	)		(28,773	)
Operating Income	$	59,966		$	57,578		$	65,601		$	52,197		$	235,342
Total Service Revenue Growth Rates
Insurance Services		13.6	%		14.6	%		15.3	%		13.8	%		14.3	%
Screening and Authentication Services		19.7	%		15.0	%		12.5	%		9.1	%		13.8	%
Financial and Professional Services		35.6	%		4.0	%		-5.1	%		-15.3	%		3.3	%
Government Services		121.8	%		52.4	%		89.2	%		81.5	%		83.4	%
Marketing Services		1.3	%		-0.9	%		-1.9	%		-6.3	%		-2.0	%
Total operations		23.8	%		14.6	%		15.9	%		11.7	%		16.3	%
Internal Revenue Growth Rates
Insurance Services		11.8	%		12.7	%		12.4	%		13.1	%		12.6	%
Screening and Authentication Services		12.2	%		11.5	%		12.5	%		9.1	%		11.3	%
Financial and Professional Services		1.3	%		-6.7	%		-5.1	%		-15.3	%		-6.8	%
Government Services		0.4	%		-7.4	%		12.5	%		3.3	%		2.2	%
Marketing Services		1.3	%		-0.9	%		-1.9	%		-6.3	%		-2.0	%
Total operations		8.3	%		6.1	%		8.3	%		4.9	%		6.9	%
Operating Profit Margins
Insurance Services		55.0	%		54.8	%		55.3	%		55.1	%		55.0	%
Screening and Authentication Services		20.1	%		23.6	%		25.8	%		27.5	%		24.4	%
Financial and Professional Services		28.2	%		19.3	%		17.7	%		9.7	%		19.4	%
Government Services		17.3	%		7.4	%		18.4	%		16.0	%		14.9	%
Marketing Services (c)		18.4	%		15.9	%		16.6	%		18.6	%		17.4	%
Operating income before other operating charges as a percentage of service revenue (b)		27.0	%		25.9	%		27.1	%		27.2	%		26.8	%
Operating income as a percentage of total revenue		24.1	%		22.8	%		24.8	%		21.0	%		23.2	%

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ChoicePoint Inc.

2006 Segment Results - Continuing Operations

(Dollars in thousands)	Q1 2006			Q2 2006			Q3 2006
Revenue
Insurance Services	$	112,326		$	112,298		$	116,118
Screening and Authentication Services		61,845			64,955			66,832
Financial and Professional Services		25,962			26,833			25,529
Government Services		31,375			32,324			35,123
Marketing Services		21,875			19,140			19,089
Service Revenue		253,383			255,550			262,691
Reimbursable Expenses per EITF 01-14		6,726			5,084			4,935
Total Revenue	$	260,109		$	260,634		$	267,626
Operating Income
Insurance Services	$	60,815		$	60,039		$	60,594
Screening and Authentication Services		14,238			14,729			15,740
Financial and Professional Services		2,451			3,923			3,044
Government Services		3,834			2,851			4,859
Marketing Services		4,002			2,135			2,834
Corporate & Shared Expenses (a)		(16,521	)		(16,142	)		(17,291	)
Operating Income before other expenses		68,819			67,535			69,780
Other expenses (b):
Accelerated depreciation		(5,463	)		—			—
Stock option expense		(3,537	)		(3,424	)		(4,284	)
Other operating charges		(5,987	)		(2,740	)		(116,054	)
Operating Income	$	53,832		$	61,371		$	(50,558	)
Total Service Revenue Growth Rates
Insurance Services		14.0	%		11.2	%		10.8	%
Screening and Authentication Services		11.3	%		5.9	%		4.9	%
Financial and Professional Services		-21.5	%		-11.3	%		-11.9	%
Government Services		0.9	%		7.8	%		-0.6	%
Marketing Services		-5.3	%		-16.8	%		-17.5	%
Total operations		4.6	%		3.8	%		2.3	%
Internal Revenue Growth Rates
Insurance Services		12.8	%		10.1	%		8.2	%
Screening and Authentication Services		11.1	%		5.0	%		3.8	%
Financial and Professional Services		-21.5	%		-11.3	%		-11.9	%
Government Services		-2.4	%		7.1	%		-0.6	%
Marketing Services		-5.3	%		-16.8	%		-17.5	%
Total operations		3.7	%		3.1	%		0.9	%
Operating Profit Margins
Insurance Services		54.1	%		53.5	%		52.2	%
Screening and Authentication Services		23.0	%		22.7	%		23.6	%
Financial and Professional Services		9.4	%		14.6	%		11.9	%
Government Services		12.2	%		8.8	%		13.8	%
Marketing Services		18.3	%		11.2	%		14.8	%
Operating income before other operating charges as a percentage of service revenue (b)		27.2	%		26.4	%		26.6	%
Operating income as a percentage of total revenue		20.7	%		23.5	%		-18.9	%

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(a) Corporate and shared expenses represent costs of support functions, research and development initiatives, incentives and profit sharing that benefit all segments.

(b) The Company has presented analysis above with and without these items because they represent costs that management excludes in its assessments of operating results.

(c) Represents operating income as a percentage of service revenue. Operating profit margin as a percentage of total revenue was 14.4%, 12.4%, 12.5%, and 13.9% for the first, second, third, and fourth quarters of 2005, respectively, 13.3% for the total year 2005, and 14.0%, 8.8%, and 11.8% for the first, second, and third quarters of 2006.

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