For the Year, Revenues Rise 11%, 6%
Organic; EPS from Continuing Operations up 6% (excluding
certain items in fiscal 2010)
Forecasting Fiscal 2012
Revenue Growth of 7% to 9% and EPS Growth of 8% to 10%
ROSELAND, N.J., July 28, 2011 (GLOBE NEWSWIRE) -- Automatic
Data Processing, Inc. (Nasdaq:ADP) reported revenue growth of 11%,
6% organic, to $9.9 billion for the fiscal year ended June 30,
2011, Gary C. Butler, chief executive officer, announced today.
Pretax earnings from continuing operations increased 4%, net
earnings from continuing operations increased 4%, and diluted
earnings per share from continuing operations of $2.52 increased 5%
from $2.40 a year ago on fewer shares outstanding. Fiscal 2010
included a favorable tax item which reduced the provision for
income taxes by $12.2 million. Excluding the favorable tax
item from fiscal 2010, net earnings from continuing operations
increased 5% and diluted earnings per share from continuing
operations increased 6% from $2.37 per share a year ago.
For the fourth quarter of fiscal 2011, revenues increased 14%,
9% organic, to $2.5 billion compared with the fourth quarter of
fiscal 2010. Pretax earnings from continuing operations
increased 17%, net earnings from continuing operations increased
16%, and diluted earnings per share from continuing operations of
$0.48 increased 14%, from $0.42 per share a year ago. Revenue
and earnings growth benefited 2 percentage points from favorable
foreign exchange rates compared with a year ago.
ADP acquired 10.4 million shares of its stock for treasury at a
cost of nearly $560 million during the fourth quarter, and about
14.2 million shares at a cost of about $730 million during the
fiscal year. Cash and marketable securities were $1.5 billion
at June 30, 2011.
Fourth Quarter and Fiscal Year 2011 Discussion
Commenting on the results, Mr. Butler said, "ADP achieved very
good results for fiscal 2011. Our key business metrics
continued to trend positively and were the strongest they have been
in three years. As anticipated, new business sales growth for
Employer Services and PEO Services was solid in the fourth quarter,
and we attained our sales target for the year of nearly $1.1
billion in expected, annualized recurring revenues. Employer
Services' client revenue retention also improved for the fourth
quarter from a year ago, resulting in a record high retention level
of just over 91% for the year. The automotive marketplace
continued to steadily recover and Dealer Services posted very
strong new business sales exiting the year.
"I am delighted with the level of acquisition activity during
fiscal 2011 as this is an important part of ADP's capital
allocation strategy. We closed multiple acquisitions with
about $450 million in annualized revenues that are expected to
enhance future organic revenues. The strength of ADP's fiscal
2011 operating cash flows allowed us to return excess cash of $1.4
billion to our shareholders through continued dividends and share
buybacks while investing about $775 million in acquisitions.
Employer Services
"Employer Services' revenues grew 9% for the fourth quarter, 6%
organically. Revenues grew 8% for the year, 5%
organically. In the United States, revenues from our
traditional payroll and payroll tax filing business grew 4% for the
fourth quarter, and 3% for the year. Beyond payroll revenues
grew 13% for both the fourth quarter and for the year, with 3
points of the growth from acquisitions. The number of
employees on our clients' payrolls in the United States increased
2.6% for the fourth quarter and 2.4% for the year, as measured on a
same-store-sales basis for our clients on our Auto Pay
platform. Worldwide client retention improved 0.4 and 1.2
percentage points for the fourth quarter and full year,
respectively. Good organic revenue growth and easier
comparisons from last year's increased investments in sales and
service headcount resulted in pretax margin
expansion. Employer Services' pretax margin improved 60 basis
points for the quarter, which included a drag of about 150 basis
points from acquisition activity. For the full year, the
negative impact from acquisition activity of about 80 basis points
resulted in a decline in pretax margin of 30 basis points.
"Combined Employer Services and PEO Services worldwide new
business sales increased 8% for the quarter and 9% for the year.
New business sales represent annualized recurring revenues
anticipated from new orders.
PEO Services
"PEO Services' revenues increased 20% for the fourth quarter and
17% for the year, all organic. PEO Services' pretax margin
improved 10 basis points for the fourth quarter, but declined 80
basis points for the year primarily due to the grow-over impact of
last year's $9 million favorable state unemployment tax
settlement. Average worksite employees paid by PEO Services
increased 14% for the fourth quarter, and 12% for the year, to
approximately 239,000 and 227,000, respectively.
Dealer Services
"Dealer Services' revenues grew 30% for the fourth quarter, 4%
organically. Revenues grew 24% for the year, 3% organically.
Total revenues for the fourth quarter and full year benefited
primarily from the Cobalt acquisition closed in the first
quarter. Dealer Services' pretax margin improved 20 basis
points for the fourth quarter and declined 100 basis points for the
year due to the negative impact on both the fourth quarter and full
year from acquisition activity of about 200 basis points.
Interest on Funds Held for Clients
"The safety, liquidity, and diversification of our clients'
funds are the foremost objectives of our investment strategy.
Client funds are invested in accordance with ADP's prudent and
conservative investment guidelines and the credit quality of the
investment portfolio is predominantly AAA/AA.
"For the fourth quarter, interest on funds held for clients
declined $3.6 million, or 2.6%, from $139.3 million to $135.7
million, due to a decline of nearly 50 basis points in the average
interest yield to 2.9%, partially offset by an increase of 13% in
average client funds balances from $16.3 billion to $18.5
billion.
"For the fiscal year, interest on funds held for clients
declined $2.7 million from $542.8 million to $540.1 million, due to
a decline of nearly 40 basis points in the average interest yield
to 3.2%, partially offset by an increase of 11% in average client
funds balances from $15.2 billion to $16.9 billion.
Fiscal 2012 Forecast
"Our fiscal 2012 forecasts anticipate no changes in the current
economic environment and are as follows:
- Total revenues – increase 7% to 9%
- Diluted earnings per share – increase 8% to 10%, compared with
$2.52 earnings per share in fiscal 2011
- Employer Services – revenue growth of 6% to 7%; pretax margin
expansion of at least 50 basis points
- Pays per control – up 1% to 2% for the year
- PEO Services – revenue growth of 15% to 17%; pretax margin
about flat
- Employer Services and PEO Services new business sales – 8% to
10% growth compared to $1.1 billion sold in fiscal 2011
- Dealer Services – revenue growth of 8% to 9%; pretax margin
expansion of about 50 basis points. About 2 points of revenue
growth is anticipated to result from the full-year effect of the
Cobalt acquisition, which was completed during the first quarter of
fiscal 2011.
"Interest on funds held for clients is expected to decline $25
to $35 million, or 5% to 6%, from $540.1 million in fiscal 2011.
This is based on a decline of 30 to 40 basis points in the expected
average interest yield to 2.8% to 2.9%, and 7% to 8% growth in
average client funds balances. The interest assumptions in
our forecasts are based on Fed Funds futures contracts and forward
yield curves as of July 26, 2011. The Fed Funds futures contracts
do not anticipate any changes during the fiscal year in the Fed
Funds target rate. The three-and-a-half and five-year U.S.
government agency rates based on the forward yield curves as of
July 26, 2011 were used to forecast new purchase rates for the
client extended and client long portfolios, respectively.
"I am pleased with the strength and resiliency of ADP's business
model as evidenced by very good results during fiscal 2011.
Solid sales performance and the positive trends in our key
business metrics drove organic revenue growth upward during the
year. Our investment in product innovation continues to drive
ADP's strong market leading position. We will continue to
invest in ADP's future and focus on successful execution against
our 5-point strategic growth program. I remain optimistic
about ADP's growth opportunities," Mr. Butler concluded.
Website Schedules
The schedules of quarterly and full-year revenue and pretax
earnings by reportable segment for fiscal years 2009, 2010, and
2011 have been updated for the fourth quarter and full-year fiscal
2011 results and posted to the Investor Relations home page
(http://www.investquest.com/iq/a/adp/index.htm) of our website
www.adp.com under Financial Data.
An analyst conference call will be held today, Thursday, July 28
at 8:30 a.m. EDT. A live webcast of the call will be
available to the public on a listen-only basis. To listen to
the webcast and view the slide presentation, go to ADP's home page,
www.adp.com, or ADP's Investor Relations home page,
http://www.investquest.com/InvestQuest/a/adp/, and click on the
webcast icon. The presentation will be available to download
and print about 60 minutes before the webcast at the ADP Investor
Relations home page at
http://www.investquest.com/iq/a/adp/index.htm. ADP's news
releases, current financial information, SEC filings and Investor
Relations presentations are accessible at the same Web site.
About ADP
Automatic Data Processing, Inc. (Nasdaq:ADP), with about $10
billion in revenues and about 570,000 clients, is one of the
world's largest providers of business outsourcing
solutions. Leveraging over 60 years of experience, ADP offers
a wide range of human resource, payroll, tax and benefits
administration solutions from a single source. ADP's
easy-to-use solutions for employers provide superior value to
companies of all types and sizes. ADP is also a leading
provider of integrated computing solutions to auto, truck,
motorcycle, marine, recreational vehicle, heavy manufacturing, and
agricultural vehicle dealers throughout the world. For
more information about ADP or to contact a local ADP sales office,
reach us at 1.800.225.5237 or visit the company's Web site at
www.ADP.com.
|
Automatic Data
Processing, Inc. and Subsidiaries |
Condensed Consolidated
Balance Sheets |
(In
millions) |
(Unaudited) |
|
|
|
|
June 30, 2011 |
June 30, 2010 |
Assets |
|
|
Cash and cash equivalents/Short-term
marketable securities |
$ 1,425.7 |
$ 1,671.2 |
Other current assets |
2,022.2 |
1,812.9 |
Total current assets before funds held
for clients |
3,447.9 |
3,484.1 |
|
|
|
Funds held for clients |
25,135.6 |
18,832.6 |
Total current assets |
28,583.5 |
22,316.7 |
|
|
|
Long-term marketable securities |
98.0 |
104.3 |
Property, plant and equipment, net |
716.2 |
673.8 |
Other non-current assets |
4,840.6 |
3,767.4 |
Total assets |
$ 34,238.3 |
$ 26,862.2 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Other current liabilities |
2,195.7 |
1,915.5 |
Client funds obligations |
24,591.1 |
18,136.7 |
Total current liabilities |
26,786.8 |
20,052.2 |
|
|
|
Long-term debt |
34.2 |
39.8 |
Other non-current liabilities |
1,406.9 |
1,291.3 |
Total liabilities |
28,227.9 |
21,383.3 |
|
|
|
Total stockholders' equity |
6,010.4 |
5,478.9 |
Total liabilities and stockholders'
equity |
$ 34,238.3 |
$ 26,862.2 |
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
Statements of
Consolidated Earnings |
(In millions, except per
share amounts) |
(Unaudited) |
|
|
|
|
|
Three Months Ended June
30, |
Twelve Months Ended June
30, |
|
2011 |
2010 |
2011 |
2010 |
Revenues: |
|
|
|
|
Revenues, other than interest on funds
held for clients and PEO revenues |
$ 1,977.3 |
$ 1,722.6 |
$ 7,805.5 |
$ 7,077.7 |
Interest on funds held for clients |
135.7 |
139.3 |
540.1 |
542.8 |
PEO revenues |
394.1 |
328.4 |
1,533.9 |
1,307.2 |
Total revenues |
2,507.1 |
2,190.3 |
9,879.5 |
8,927.7 |
|
|
|
|
|
Expenses: |
|
|
|
|
Costs of revenues: |
|
|
|
|
Operating expenses |
1,310.4 |
1,086.5 |
4,900.9 |
4,277.2 |
Systems development &
programming |
144.3 |
137.7 |
577.2 |
513.9 |
Depreciation & amortization |
64.0 |
58.0 |
253.4 |
238.6 |
Total costs of revenues |
1,518.7 |
1,282.2 |
5,731.5 |
5,029.7 |
|
|
|
|
|
Selling, general & administrative
expenses |
660.3 |
611.9 |
2,323.3 |
2,127.4 |
Interest expense |
1.7 |
1.8 |
8.6 |
8.6 |
Total expenses |
2,180.7 |
1,895.9 |
8,063.4 |
7,165.7 |
|
|
|
|
|
Other income, net |
(32.3) |
(11.1) |
(116.6) |
(101.2) |
|
|
|
|
|
Earnings from continuing operations
before income taxes |
358.7 |
305.5 |
1,932.7 |
1,863.2 |
|
|
|
|
|
Provision for income taxes |
116.9 |
97.9 |
678.5 |
655.9 |
|
|
|
|
|
Net earnings from continuing
operations |
$ 241.8 |
$ 207.6 |
$ 1,254.2 |
$ 1,207.3 |
|
|
|
|
|
Earnings from discontinued operations, net of
provision for income taxes of $0 and $7.0 for the three and
twelve months ended June 30, 2010, respectively. |
-- |
0.3 |
-- |
4.1 |
|
|
|
|
|
Net earnings |
$ 241.8 |
$ 207.9 |
$ 1,254.2 |
$ 1,211.4 |
|
|
|
|
|
Basic Earnings Per Share from Continuing
Operations |
$ 0.49 |
$ 0.42 |
$ 2.54 |
$ 2.41 |
Basic Earnings Per Share from
Discontinued Operations |
-- |
-- |
-- |
0.01 |
Basic Earnings Per Share |
$ 0.49 |
$ 0.42 |
$ 2.54 |
$ 2.42 |
|
|
|
|
|
Diluted Earnings Per Share from
Continuing Operations |
$ 0.48 |
$ 0.42 |
$ 2.52 |
$ 2.40 |
Diluted Earnings Per Share from
Discontinued Operations |
-- |
-- |
-- |
0.01 |
DILUTED EARNINGS PER SHARE |
$ 0.48 |
$ 0.42 |
$ 2.52 |
$ 2.40 |
|
|
|
|
|
Dividends declared per common share |
$ 0.3600 |
$ 0.3400 |
$ 1.4200 |
$ 1.3500 |
|
|
|
|
|
(A) Professional Employer
Organization ("PEO") revenues are net of direct pass-through costs,
primarily consisting of payroll wages and payroll taxes, of
$4,004.7 and $3,224.6 for the three months ended June 30, 2011 and
2010, respectively, and $15,765.3 and $13,318.7 for the twelve
months ended June 30, 2011 and 2010, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
Other Selected Financial
Data |
(Dollars in millions,
except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
Revenues (A) |
|
|
|
|
Employer Services |
$ 1,714.5 |
$ 1,575.7 |
$ 138.8 |
9% |
PEO Services |
396.6 |
330.9 |
65.7 |
20% |
Dealer Services |
391.2 |
301.3 |
89.9 |
30% |
Other |
4.8 |
(17.6) |
22.4 |
100+% |
|
$ 2,507.1 |
$ 2,190.3 |
$ 316.8 |
14% |
Pre-tax earnings from continuing
operations (A) |
|
|
|
|
Employer Services |
$ 376.3 |
$ 335.8 |
$ 40.5 |
12% |
PEO Services |
35.5 |
29.3 |
6.2 |
21% |
Dealer Services |
58.7 |
44.6 |
14.1 |
31% |
Other |
(111.8) |
(104.2) |
(7.6) |
(7)% |
|
$ 358.7 |
$ 305.5 |
$ 53.2 |
17% |
Pre-tax margin (A) |
|
|
|
|
Employer Services |
22.0% |
21.3% |
0.6% |
|
PEO Services |
8.9% |
8.9% |
0.1% |
|
Dealer Services |
15.0% |
14.8% |
0.2% |
|
Other |
n/m |
n/m |
n/m |
|
|
14.3% |
13.9% |
0.4% |
|
|
|
|
|
|
|
Twelve Months Ended June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
Revenues (A) |
|
|
|
|
Employer Services |
$ 6,861.7 |
$ 6,376.7 |
$ 485.0 |
8% |
PEO Services |
1,543.9 |
1,316.8 |
227.1 |
17% |
Dealer Services |
1,494.4 |
1,205.9 |
288.5 |
24% |
Other |
(20.5) |
28.3 |
(48.9) |
(100)+% |
|
$ 9,879.5 |
$ 8,927.7 |
$ 951.8 |
11% |
Pre-tax earnings from continuing
operations (A) |
|
|
|
|
Employer Services |
$ 1,831.5 |
$ 1,720.6 |
$ 110.9 |
6% |
PEO Services |
137.4 |
127.3 |
10.1 |
8% |
Dealer Services |
234.4 |
201.5 |
32.9 |
16% |
Other |
(270.6) |
(186.2) |
(84.4) |
(45)% |
|
$ 1,932.7 |
$ 1,863.2 |
$ 69.5 |
4% |
Pre-tax margin (A) |
|
|
|
|
Employer Services |
26.7% |
27.0% |
(0.3)% |
|
PEO Services |
8.9% |
9.7% |
(0.8)% |
|
Dealer Services |
15.7% |
16.7% |
(1.0)% |
|
Other |
n/m |
n/m |
n/m |
|
|
19.6% |
20.9% |
(1.3)% |
|
|
|
|
|
|
(A) Prior year's segment results
were adjusted to reflect fiscal year 2011 budgeted foreign exchange
rates. |
|
|
|
|
|
n/m - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
|
2011 |
2010 |
Change in other income, net |
|
Components of other income, net: |
|
|
|
|
Interest income on corporate funds |
$ (20.1) |
$ (20.6) |
$ (0.5) |
|
Realized gains on available-for-sale
securities |
(15.0) |
(3.3) |
11.7 |
|
Realized losses on available-for-sale
securities |
0.3 |
0.5 |
0.2 |
|
Impairment losses on available-for-sale
securities |
-- |
9.1 |
9.1 |
|
Impairment losses on assets held for
sale |
3.1 |
-- |
(3.1) |
|
Net losses on sales of buildings |
-- |
3.8 |
3.8 |
|
Other, net |
(0.6) |
(0.6) |
-- |
|
Total other income, net |
$ (32.3) |
$ (11.1) |
$ 21.2 |
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended June
30, |
|
|
|
2011 |
2010 |
Change in other income, net |
|
Components of other income, net: |
|
|
|
|
Interest income on corporate funds |
$ (88.8) |
$ (98.8) |
$ (10.0) |
|
Realized gains on available-for-sale
securities |
(38.0) |
(15.0) |
23.0 |
|
Realized losses on available-for-sale
securities |
3.6 |
13.4 |
9.8 |
|
Realized gains on investment in Reserve
Fund |
(0.9) |
(15.2) |
(14.3) |
|
Impairment losses on available-for-sale
securities |
-- |
14.4 |
14.4 |
|
Impairment losses on assets held for
sale |
11.7 |
-- |
(11.7) |
|
Net (gains) losses on sales of buildings |
(1.8) |
2.3 |
4.1 |
|
Other, net |
(2.4) |
(2.3) |
0.1 |
|
Total other income, net |
$ (116.6) |
$ (101.2) |
$ 15.4 |
|
|
|
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
Other Selected Financial
Data, Continued |
(Dollars in millions,
except per share amounts or where otherwise stated) |
(Unaudited) |
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
Earnings per share information: |
|
|
|
|
Net earnings from continuing operations |
$ 241.8 |
$ 207.6 |
$ 34.2 |
16% |
Net earnings |
$ 241.8 |
$ 207.9 |
$ 33.9 |
16% |
Basic weighted average shares
outstanding |
494.5 |
496.2 |
(1.7) |
0% |
Basic earnings per share from continuing
operations |
$ 0.49 |
$ 0.42 |
$ 0.07 |
17% |
Basic earnings per share |
$ 0.49 |
$ 0.42 |
$ 0.07 |
17% |
|
|
|
|
|
Diluted net earnings from continuing
operations |
$ 241.8 |
$ 207.6 |
$ 34.2 |
16% |
Diluted net earnings |
$ 241.8 |
$ 207.9 |
$ 33.9 |
16% |
Diluted weighted average shares
outstanding |
500.6 |
499.7 |
0.9 |
0% |
Diluted earnings per share from continuing
operations |
$ 0.48 |
$ 0.42 |
$ 0.06 |
14% |
Diluted earnings per share |
$ 0.48 |
$ 0.42 |
$ 0.06 |
14% |
|
|
|
|
|
|
Twelve Months Ended June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
Earnings per share information: |
|
|
|
|
Net earnings from continuing operations |
$ 1,254.2 |
$ 1,207.3 |
$ 46.9 |
4% |
Net earnings |
$ 1,254.2 |
$ 1,211.4 |
$ 42.8 |
4% |
Basic weighted average shares
outstanding |
493.5 |
500.5 |
(7.0) |
(1)% |
Basic earnings per share from continuing
operations |
$ 2.54 |
$ 2.41 |
$ 0.13 |
5% |
Basic earnings per share |
$ 2.54 |
$ 2.42 |
$ 0.12 |
5% |
|
|
|
|
|
Diluted net earnings from continuing
operations |
$ 1,254.2 |
$ 1,207.3 |
$ 46.9 |
4% |
Diluted net earnings |
$ 1,254.2 |
$ 1,211.4 |
$ 42.8 |
4% |
Diluted weighted average shares
outstanding |
498.3 |
503.7 |
(5.4) |
(1)% |
Diluted earnings per share from continuing
operations |
$ 2.52 |
$ 2.40 |
$ 0.12 |
5% |
Diluted earnings per share |
$ 2.52 |
$ 2.40 |
$ 0.12 |
5% |
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
|
2011 |
2010 |
|
|
Key Statistics: |
|
|
|
|
Internal revenue growth: |
|
|
|
|
Employer Services |
6% |
4% |
|
|
PEO Services |
20% |
13% |
|
|
Dealer Services |
4% |
(1)% |
|
|
|
|
|
|
|
Employer Services: |
|
|
|
|
Change in pays per control - AutoPay
product |
2.6% |
0.3% |
|
|
Change in client revenue retention
percentage - worldwide |
0.4 pts |
1.6 pts |
|
|
Employer Services/PEO new business sales
growth - worldwide |
8% |
25% |
|
|
|
|
|
|
|
PEO Services: |
|
|
|
|
Paid PEO worksite employees at end of
period |
241,000 |
211,000 |
|
|
Average paid PEO worksite employees
during the period |
239,000 |
210,000 |
|
|
|
|
|
|
|
|
Twelve Months Ended June
30, |
|
|
|
2011 |
2010 |
|
|
Key Statistics: |
|
|
|
|
Internal revenue growth: |
|
|
|
|
Employer Services |
5% |
0% |
|
|
PEO Services |
17% |
11% |
|
|
Dealer Services |
3% |
(4)% |
|
|
|
|
|
|
|
Employer Services: |
|
|
|
|
Change in pays per control - AutoPay
product |
2.4% |
(3.4)% |
|
|
Change in client revenue retention
percentage - worldwide |
1.2 pts |
0.4 pts |
|
|
Employer Services/PEO new business sales
growth - worldwide |
9% |
4% |
|
|
|
|
|
|
|
PEO Services: |
|
|
|
|
Paid PEO worksite employees at end of
period |
241,000 |
211,000 |
|
|
Average paid PEO worksite employees
during the period |
227,000 |
203,000 |
|
|
|
|
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
Other Selected Financial
Data, Continued |
(Dollars in millions,
except per share amounts or where otherwise stated) |
(Unaudited) |
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
Average investment balances at cost (in
billions): |
|
|
|
|
Corporate, other than corporate
extended |
$ 1.5 |
$ 2.1 |
$ (0.6) |
(29)% |
Corporate extended |
2.0 |
1.7 |
0.3 |
16% |
Total corporate |
3.4 |
3.8 |
$ (0.4) |
(9)% |
Funds held for clients |
18.5 |
16.3 |
2.2 |
13% |
Total |
$ 21.9 |
$ 20.1 |
$ 1.8 |
9% |
|
|
|
|
|
Average interest rates earned exclusive of
realized losses (gains) on: |
|
|
|
|
Corporate, other than corporate
extended |
1.1% |
0.7% |
|
|
Corporate extended |
3.2% |
4.0% |
|
|
Total corporate |
2.3% |
2.2% |
|
|
Funds held for clients |
2.9% |
3.4% |
|
|
Total |
2.8% |
3.2% |
|
|
|
|
|
|
|
Net unrealized gain position at end of
period |
$ 571.0 |
$ 710.9 |
|
|
|
|
|
|
|
Average short-term financing (in
billions): |
|
|
|
|
U.S. commercial paper borrowings |
$ 1.3 |
$ 1.1 |
|
|
U.S. & Canadian reverse repurchase
agreement borrowings |
0.7 |
0.6 |
|
|
|
$ 2.0 |
$ 1.7 |
|
|
|
|
|
|
|
Average interest rates paid on: |
|
|
|
|
U.S. commercial paper borrowings |
0.1% |
0.3% |
|
|
U.S. & Canadian reverse repurchase
agreement borrowings |
0.3% |
0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on funds held for clients |
$ 135.7 |
$ 139.3 |
$ (3.6) |
(3)% |
Corporate extended interest income (B) |
15.8 |
16.8 |
(1.0) |
(6)% |
Corporate interest expense-short-term
financing (B) |
(0.9) |
(1.1) |
0.2 |
18% |
|
$ 150.5 |
$ 155.0 |
$ (4.4) |
(3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended June
30, |
|
|
|
2011 |
2010 |
Change |
% Change |
Average investment balances at cost (in
billions): |
|
|
|
|
Corporate, other than corporate
extended |
$ 1.4 |
$ 1.8 |
(0.4) |
(24)% |
Corporate extended |
2.1 |
2.1 |
-- |
2% |
Total corporate |
3.5 |
3.8 |
$ (0.4) |
(10)% |
Funds held for clients |
16.9 |
15.2 |
1.7 |
11% |
Total |
$ 20.3 |
$ 19.0 |
$ 1.3 |
7% |
|
|
|
|
|
Average interest rates earned exclusive of
realized losses (gains) on: |
|
|
|
|
Corporate, other than corporate
extended |
1.0% |
0.8% |
|
|
Corporate extended |
3.5% |
4.1% |
|
|
Total corporate |
2.6% |
2.6% |
|
|
Funds held for clients |
3.2% |
3.6% |
|
|
Total |
3.1% |
3.4% |
|
|
|
|
|
|
|
Net unrealized gain position at end of
period |
$ 571.0 |
$ 710.9 |
|
|
|
|
|
|
|
Average short-term financing (in
billions): |
|
|
|
|
U.S. commercial paper borrowings |
$ 1.6 |
$ 1.6 |
|
|
U.S. & Canadian reverse repurchase
agreement borrowings |
0.5 |
0.4 |
|
|
|
$ 2.1 |
$ 2.1 |
|
|
|
|
|
|
|
Average interest rates paid on: |
|
|
|
|
U.S. commercial paper borrowings |
0.2% |
0.2% |
|
|
U.S. & Canadian reverse repurchase
agreement borrowings |
0.4% |
0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on funds held for clients |
$ 540.1 |
$ 542.8 |
$ (2.7) |
0% |
Corporate extended interest income (B) |
73.7 |
84.3 |
(10.6) |
(13)% |
Corporate interest expense-short-term
financing (B) |
(5.7) |
(4.3) |
(1.4) |
(32)% |
|
$ 608.1 |
$ 622.8 |
$ (14.7) |
(2)% |
|
|
|
|
|
(B) While "Corporate
extended interest income" and "Corporate interest expense
-short-term financing" are non-GAAP disclosures, management
believes this information is beneficial to reviewing the financial
statements of ADP. Management believes this information is
beneficial as it allows the reader to understand the extended
investment strategy for ADP's client funds assets, corporate
investments and short-term borrowings. A reconciliation of the
non-GAAP measures to GAAP measures is as follows: |
|
|
|
|
|
|
|
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
Other Selected Financial
Data, Continued |
(Dollars in millions,
except per share amounts or where otherwise stated) |
(Unaudited) |
|
Three Months Ended June
30, |
|
|
|
2011 |
2010 |
|
|
|
|
|
|
|
Corporate extended interest income |
$ 15.8 |
$ 16.8 |
|
|
All other interest income |
4.3 |
3.8 |
|
|
Total interest income on corporate
funds |
$ 20.1 |
$ 20.6 |
|
|
|
|
|
|
|
Corporate interest expense - short-term
financing |
$ 0.9 |
$ 1.1 |
|
|
All other interest expense |
0.8 |
0.7 |
|
|
Total interest expense |
$ 1.7 |
$ 1.8 |
|
|
|
|
|
|
|
|
Twelve Months Ended June
30, |
|
|
|
2011 |
2010 |
|
|
|
|
|
|
|
Corporate extended interest income |
$ 73.7 |
$ 84.3 |
|
|
All other interest income |
15.1 |
14.5 |
|
|
Total interest income on corporate
funds |
$ 88.8 |
$ 98.8 |
|
|
|
|
|
|
|
Corporate interest expense - short-term
financing |
$ 5.7 |
$ 4.3 |
|
|
All other interest expense |
2.9 |
4.3 |
|
|
Total interest expense |
$ 8.6 |
$ 8.6 |
|
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
Consolidated Statements
of Adjusted / Non-GAAP Financial Information |
(In millions, except per
share amounts) |
(Unaudited) |
|
|
|
|
|
The following table reconciles
the Company's results for the twelve months ended June 30, 2010 to
adjusted results that exclude the impact of favorable tax items.
The Company uses certain adjusted results, among other measures, to
evaluate the Company's operating performance in the absence of
certain items and for planning and forecasting of future periods.
The Company believes that the adjusted results provide relevant and
useful information for investors because it allows investors to
view performance in a manner similar to the method used by the
Company's management, improves their ability to understand the
Company's operating performance and makes it easier to compare the
Company's results with other companies. Since adjusted
earnings from continuing operations and adjusted diluted EPS are
not measures of performance calculated in accordance with U.S.
GAAP, they should not be considered in isolation of, or as a
substitute for, earnings from continuing operations and diluted EPS
from continuing operations and they may not be comparable to
similarly titled measures employed by other companies. |
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended June
30, 2010 |
|
Earnings from continuing operations
before income taxes |
Provision for income taxes |
Net earnings from continuing
operations |
Diluted EPS from continuing
operations |
|
|
|
|
|
As Reported |
$ 1,863.2 |
$ 655.9 |
$ 1,207.3 |
$ 2.40 |
|
|
|
|
|
Adjustments: |
|
|
|
|
Favorable tax items |
-- |
12.2 |
12.2 |
0.02 |
|
|
|
|
|
As Adjusted |
$ 1,863.2 |
$ 668.1 |
$ 1,195.1 |
$ 2.37 |
This document and other written or oral statements made from
time to time by ADP may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Statements that are not historical in nature and which may be
identified by the use of words like "expects," "assumes,"
"projects," "anticipates," "estimates," "we believe," "could be"
and other words of similar meaning, are forward-looking statements.
These statements are based on management's expectations and
assumptions and are subject to risks and uncertainties that may
cause actual results to differ materially from those expressed.
Factors that could cause actual results to differ materially from
those contemplated by the forward-looking statements include: ADP's
success in obtaining, retaining and selling additional services to
clients; the pricing of products and services; changes in laws
regulating payroll taxes, professional employer organizations and
employee benefits; overall market and economic conditions,
including interest rate and foreign currency trends; competitive
conditions; auto sales and related industry changes; employment and
wage levels; changes in technology; availability of skilled
technical associates and the impact of new acquisitions and
divestitures. ADP disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. These risks and uncertainties, along
with the risk factors discussed under "Item 1A. - Risk Factors" in
our Annual Report on Form 10-K for the fiscal year ended June 30,
2010 should be considered in evaluating any forward-looking
statements contained herein.
CONTACT: Automatic Data Processing, Inc.
ADP Investor Relations
Elena Charles
973.974.4077
Debbie Morris
973.974.7821
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