ADP® (Nasdaq:ADP), a leading global provider of Human Capital
Management (HCM) solutions, today announced its third quarter
fiscal 2016 financial results. Compared to last year’s third
quarter, revenues grew 7% to $3.2 billion, 9% on a constant dollar
basis. EBIT grew 9% to $806 million, 10% on a constant dollar
basis. EBIT margin increased about 40 basis points in the quarter
to 24.8%. Diluted earnings per share from continuing operations
increased to $1.17, representing growth of 14% on a reported and
constant dollar basis. This growth reflects a lower effective tax
rate and fewer shares outstanding compared with last year’s third
quarter.
Constant dollar, EBIT and EBIT margin are non-GAAP financial
measures. For ADP’s definition of EBIT, see the paragraph “Non-GAAP
Financial Information” at the end of this release. Please refer to
the accompanying financial tables for a reconciliation of non-GAAP
financial measures to their comparable GAAP measures.
“We are seeing continued traction for our technology solutions
and our robust service offerings, as a growing number of clients
adopt new applications or chose our higher-touch HR outsourcing
models,” said Carlos Rodriguez, president and chief executive
officer, ADP. “While sales of additional human capital
management modules that assist with the Affordable Care Act, or
ACA, compliance continue to boost our performance, we are
especially pleased to have seen balanced contributions to growth
from across our HCM portfolio.”
“ADP’s results in the third quarter were solid and reflect
investments we’ve made to support our clients through the first
year of ACA compliance reporting,” said Jan Siegmund, chief
financial officer, ADP. “On a year-to-date basis, we have
made substantial investments in operational resources and
additional selling expenses, and have also continued our
shareholder friendly actions, returning over $1.7 billion in cash
through dividends and share repurchases.”
Third Quarter Fiscal 2016 Segment Results
Employer Services – Employer Services offers a comprehensive
range of HCM and human resources outsourcing solutions.
- Employer Services revenues increased 5% over last year’s third
quarter, 7% on a constant dollar basis.
- The number of employees on ADP clients' payrolls in the United
States increased 2.5% for the third quarter when measured on a
same-store-sales basis for a subset of clients ranging from small
to large businesses.
- Employer Services client revenue retention declined 30 basis
points compared to a year ago.
- Employer Services segment margin decreased approximately 40
basis points compared to last year’s third quarter. This decrease
was primarily driven by the impact of investments made in
operational resources to support new business sold.
PEO Services – PEO Services provides comprehensive employment
administration outsourcing solutions through a co-employment
relationship.
- PEO Services revenues increased 16% compared to last year’s
third quarter.
- PEO Services segment margin increased approximately 50 basis
points over last year’s third quarter, primarily driven by sales
and operational efficiencies.
- Average worksite employees paid by PEO Services increased 14%
for the quarter to approximately 422,000.
Interest on Funds Held for Clients
The safety, liquidity and diversification of ADP clients’ funds
are the foremost objectives of the company’s 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 third quarter, interest on funds held for clients
increased 2% to $103 million from $101 million a year ago.
- Average client funds balances increased 2% in the third quarter
to $26.7 billion compared to $26.2 billion a year ago. On a
constant dollar basis, average client funds balances increased
3%.
- The average interest yield on client funds remained flat in the
third quarter at 1.5% when compared to a year ago.
Fiscal 2016 Outlook
ADP’s fiscal 2016 outlook excludes the impact of the first
quarter gain of $29 million on the sale of the AdvancedMD business
and the second quarter gain of $14 million on the sale of a
building. Adjusted amounts below exclude these two items.
ADP continues to expect growth in worldwide new business
bookings of at least 12% over $1.6 billion sold in fiscal 2015.
Forecasted revenue growth remains unchanged at about 7% or about
9% on a constant dollar basis. This forecast includes an
anticipated negative impact of approximately one percentage point
from the sale of the AdvancedMD business.
ADP now anticipates adjusted diluted earnings per share growth
of about 12% compared with our prior forecast of 11% to 13%
growth. On a constant dollar basis, adjusted diluted earnings
per share is expected to increase about 13%, compared with our
prior forecast of an increase of 12% to 14%.
ADP’s earnings growth forecast still assumes adjusted EBIT
margin expansion of about 50 basis points from 18.8% in fiscal
2015. ADP now anticipates an adjusted effective tax rate of 33.3%
compared to the prior forecasted rate of 33.7%.
Reportable Segments Fiscal 2016 Forecast
- For the Employer Services segment, ADP still anticipates
revenue growth of 4% to 5%. ADP continues to expect about 7%
revenue growth on a constant dollar basis. Employer Services
segment margin is now expected to expand about 50 basis points
compared with our prior forecast of margin expansion of about 75
basis points.
- ADP now expects pays per control to increase 2.5% for the year,
as compared to the prior forecast of 2.0% to 3.0%.
- For the PEO Services segment, ADP now anticipates about 17%
revenue growth compared with our prior forecast of 16% to 18%. ADP
now expects segment margin expansion of up to 75 basis points
compared with our prior forecast of about 50 basis points.
Client Funds Extended Investment Strategy Fiscal 2016
Forecast
The interest assumptions in our forecasts are based on Fed Funds
futures contracts and forward yield curves as of April 26, 2016.
The Fed Funds futures contracts used in the client short and
corporate cash interest income forecasts do not anticipate an
increase in the Fed Funds target rate during the remainder of the
fiscal year. The three-and-a-half and five-year U.S. government
agency rates based on the forward yield curves as of April 26, 2016
were used to forecast new purchase rates for the client and
corporate extended, and client long portfolios, respectively.
- Interest on funds held for clients is now expected to be about
flat from $378 million in fiscal 2015, compared to the prior
forecast of an increase of up to $5 million. This forecast is based
on anticipated growth in average client funds balances of 3%, to
about $22.4 billion, compared to our prior forecast of 2% to 4%
growth. On a constant dollar basis, average client funds balances
are expected to grow 4%. This forecast assumes an average yield of
1.7%, which is anticipated to be flat compared to fiscal 2015.
- Consistent with the previous forecast, the total contribution
from the client funds extended investment strategy is expected to
be about flat compared to last year.
Investor Webcast Today
ADP will host a conference call for financial analysts today,
Thursday, April 28, 2016 at 8:30 a.m. EDT. The conference call will
be webcast live on ADP’s website at investors.adp.com and will be
available for replay following the call. A slide presentation will
be available shortly before the webcast.
Supplemental financial information including schedules of
quarterly and full year reportable segment revenues and earnings
for fiscal years 2014 and 2015 and the first three quarters of
fiscal 2016, as well as details of the first three quarters of
fiscal 2016 results from the client funds extended investment
strategy, are posted to ADP’s website at investors.adp.com. ADP
news releases, current financial information, SEC filings and
Investor Relations presentations are accessible at the same
website.
Non-GAAP Financial InformationThe company has
presented certain financial data that are considered non-GAAP
financial measures and are reconciled to their comparable GAAP
measures in the accompanying financial tables. The EBIT performance
measures include interest income earned on investments associated
with our client funds extended investment strategy and interest
expense on borrowings related to our client funds extended
investment strategy. ADP believes these amounts to be
fundamental to the underlying operations of our business
model. ADP’s calculation of EBIT may differ from similarly
titled measures used by other companies.
The presentation of growth rates on a constant dollar basis
represent a non-GAAP measure and are calculated by restating
current period results into U.S. dollars using the comparable prior
period’s exchange rates.
About ADP (Nasdaq:ADP)Powerful technology plus
a human touch. Companies of all types and sizes around the
world rely on ADP’s cloud software and expert insights to help
unlock the potential of their people. HR. Talent. Benefits.
Payroll. Compliance. Working together to build a better workforce.
For more information, visit ADP.com.
Automatic Data Processing, Inc. and
Subsidiaries |
|
Statements of Consolidated Earnings |
|
(In millions, except per share amounts) |
|
(Unaudited) |
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Revenues,
other than interest on funds held for clients and PEO revenues |
|
$ |
2,283.8 |
|
|
$ |
2,178.3 |
|
|
$ |
6,196.6 |
|
|
$ |
6,003.3 |
|
|
|
|
Interest on funds held for clients |
|
|
102.8 |
|
|
|
101.3 |
|
|
|
280.0 |
|
|
|
282.3 |
|
|
|
|
PEO revenues (A) |
|
|
862.0 |
|
|
|
744.7 |
|
|
|
2,292.9 |
|
|
|
1,958.4 |
|
|
|
|
|
Total
revenues |
|
|
3,248.6 |
|
|
|
3,024.3 |
|
|
|
8,769.5 |
|
|
|
8,244.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
1,611.6 |
|
|
|
1,482.6 |
|
|
|
4,530.9 |
|
|
|
4,227.6 |
|
|
|
|
Systems development & programming costs |
|
|
147.3 |
|
|
|
149.5 |
|
|
|
453.0 |
|
|
|
442.9 |
|
|
|
|
Depreciation & amortization |
|
|
53.8 |
|
|
|
52.2 |
|
|
|
157.8 |
|
|
|
155.4 |
|
|
|
|
|
Total
costs of revenues |
|
|
1,812.7 |
|
|
|
1,684.3 |
|
|
|
5,141.7 |
|
|
|
4,825.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general & administrative expenses |
|
|
634.4 |
|
|
|
607.2 |
|
|
|
1,866.7 |
|
|
|
1,771.7 |
|
|
|
Interest expense |
|
|
16.3 |
|
|
|
0.8 |
|
|
|
38.1 |
|
|
|
4.9 |
|
|
|
|
|
Total
expenses |
|
|
2,463.4 |
|
|
|
2,292.3 |
|
|
|
7,046.5 |
|
|
|
6,602.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(9.6 |
) |
|
|
(7.9 |
) |
|
|
(84.7 |
) |
|
|
(47.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income
taxes |
|
|
794.8 |
|
|
|
739.9 |
|
|
|
1,807.7 |
|
|
|
1,689.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
262.3 |
|
|
|
249.6 |
|
|
|
596.3 |
|
|
|
569.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings from continuing operations |
|
$ |
532.5 |
|
|
$ |
490.3 |
|
|
$ |
1,211.4 |
|
|
$ |
1,119.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations before income taxes |
|
|
— |
|
|
|
0.3 |
|
|
|
(1.4 |
) |
|
|
67.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
— |
|
|
|
1.0 |
|
|
|
(0.5 |
) |
|
|
71.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings from discontinued operations |
|
$ |
— |
|
|
$ |
(0.7 |
) |
|
$ |
(0.9 |
) |
|
$ |
(3.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings |
|
$ |
532.5 |
|
|
$ |
489.6 |
|
|
$ |
1,210.5 |
|
|
$ |
1,116.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share from continuing operations |
|
$ |
1.17 |
|
|
$ |
1.04 |
|
|
$ |
2.64 |
|
|
$ |
2.36 |
|
|
|
Basic earnings per share from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
Basic earnings per share |
|
$ |
1.17 |
|
|
$ |
1.04 |
|
|
$ |
2.64 |
|
|
$ |
2.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations |
|
$ |
1.17 |
|
|
$ |
1.03 |
|
|
$ |
2.63 |
|
|
$ |
2.34 |
|
|
|
Diluted earnings per share from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
Diluted earnings per share |
|
$ |
1.17 |
|
|
$ |
1.03 |
|
|
$ |
2.63 |
|
|
$ |
2.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
0.530 |
|
|
$ |
0.490 |
|
|
$ |
1.550 |
|
|
$ |
1.460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Other income, net: |
|
|
|
|
|
|
|
|
|
|
Interest income on corporate funds |
|
$ |
(9.7 |
) |
|
$ |
(7.2 |
) |
|
$ |
(45.6 |
) |
|
$ |
(43.9 |
) |
|
|
Realized gains on available-for-sale securities |
|
|
(2.0 |
) |
|
|
(1.0 |
) |
|
|
(3.5 |
) |
|
|
(3.6 |
) |
|
|
Realized losses on available-for-sale securities |
|
|
2.1 |
|
|
|
0.3 |
|
|
|
7.4 |
|
|
|
1.3 |
|
|
|
Gain on sale of notes receivable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.4 |
) |
|
|
Gain on sale of business |
|
|
— |
|
|
|
— |
|
|
|
(29.1 |
) |
|
|
— |
|
|
|
Gain on sale of building |
|
|
— |
|
|
|
— |
|
|
|
(13.9 |
) |
|
|
— |
|
|
|
Total other income, net |
|
$ |
(9.6 |
) |
|
$ |
(7.9 |
) |
|
$ |
(84.7 |
) |
|
$ |
(47.6 |
) |
|
|
|
(A) Professional Employer Organization (“PEO”) revenues are
net of direct pass-through costs, primarily consisting of payroll
wages and payroll taxes of $8,374.8 million and $7,018.9 million
for the three months ended March 31, 2016 and 2015,
respectively, and $23,613.0 million and $19,972.5 million for the
nine months ended March 31, 2016 and 2015, respectively. |
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
(In
millions) |
|
|
|
(Unaudited) |
|
|
|
|
March 31, |
|
June 30, |
|
|
2016 |
|
|
|
2015 |
|
Assets |
|
|
|
Cash and cash
equivalents/Short-term marketable securities |
$ |
2,965.1 |
|
|
$ |
1,665.9 |
|
Other
current assets |
|
2,802.4 |
|
|
|
2,278.0 |
|
Total current assets before funds
held for clients |
|
5,767.5 |
|
|
|
3,943.9 |
|
Funds
held for clients |
|
41,051.5 |
|
|
|
24,865.3 |
|
Total current assets |
|
46,819.0 |
|
|
|
28,809.2 |
|
|
|
|
|
Long-term marketable securities |
|
7.8 |
|
|
|
28.9 |
|
Property, plant and equipment, net |
|
668.8 |
|
|
|
672.7 |
|
Other
non-current assets |
|
3,630.0 |
|
|
|
3,599.7 |
|
Total assets |
$ |
51,125.6 |
|
|
$ |
33,110.5 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Other
current liabilities |
$ |
2,569.1 |
|
|
$ |
2,463.2 |
|
Client
funds obligations |
|
40,681.3 |
|
|
|
24,650.5 |
|
Total current liabilities |
|
43,250.4 |
|
|
|
27,113.7 |
|
|
|
|
|
Long-term debt |
|
2,007.7 |
|
|
|
9.2 |
|
Other
non-current liabilities |
|
1,364.3 |
|
|
|
1,179.1 |
|
Total liabilities |
|
46,622.4 |
|
|
|
28,302.0 |
|
|
|
|
|
Total
stockholders' equity |
|
4,503.2 |
|
|
|
4,808.5 |
|
Total liabilities and stockholders'
equity |
$ |
51,125.6 |
|
|
$ |
33,110.5 |
|
|
|
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
|
|
|
|
Condensed
Statements of Consolidated Cash Flows |
|
|
|
|
(In
millions) |
|
|
|
|
(Unaudited) |
Nine Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Cash Flows from
Operating Activities: |
|
|
|
|
Net
earnings |
$ |
1,210.5 |
|
|
$ |
1,116.3 |
|
|
Adjustments to reconcile net earnings to cash flows provided by
operating activities |
|
377.3 |
|
|
|
313.6 |
|
|
Changes
in operating assets and liabilities, net of effects from
acquisitions and divestitures of businesses |
|
(387.0 |
) |
|
|
(189.1 |
) |
|
Proceeds
from the sale of notes receivable |
|
— |
|
|
|
226.7 |
|
|
Operating activities of discontinued operations |
|
— |
|
|
|
(3.3 |
) |
|
Net cash flows
provided by operating activities |
|
1,200.8 |
|
|
|
1,464.2 |
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
Purchases and proceeds from corporate and client funds marketable
securities |
|
(179.7 |
) |
|
|
(748.7 |
) |
|
Net
increase in restricted cash and cash equivalents held to satisfy
client funds obligations |
|
(15,969.9 |
) |
|
|
(7,133.3 |
) |
|
Capital
expenditures |
|
(127.6 |
) |
|
|
(107.5 |
) |
|
Additions to intangibles |
|
(160.1 |
) |
|
|
(131.6 |
) |
|
Dividend
received from CDK Global, Inc., net of cash retained |
|
— |
|
|
|
645.0 |
|
|
Other
investing activities |
|
177.9 |
|
|
|
15.5 |
|
|
Investing activities of discontinued operations |
|
— |
|
|
|
(15.9 |
) |
|
Net cash flows
used in investing activities |
|
(16,259.4 |
) |
|
|
(7,476.5 |
) |
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
Net
increase in client funds obligations |
|
16,098.1 |
|
|
|
9,811.3 |
|
|
Net
proceeds from debt issuance |
|
1,998.3 |
|
|
|
— |
|
|
Repurchases of common stock |
|
(1,091.0 |
) |
|
|
(1,127.7 |
) |
|
Dividends paid |
|
(701.2 |
) |
|
|
(696.2 |
) |
|
Net
repayments of commercial paper borrowings |
|
— |
|
|
|
(2,173.0 |
) |
|
Other
financing activities |
|
62.0 |
|
|
|
133.9 |
|
|
Financing activities of discontinued operations |
|
— |
|
|
|
1.5 |
|
|
Net cash flows
provided by financing activities |
|
16,366.2 |
|
|
|
5,949.8 |
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents |
|
(5.5 |
) |
|
|
(112.5 |
) |
|
|
|
|
|
|
Net
change in cash and cash equivalents |
|
1,302.1 |
|
|
|
(175.0 |
) |
|
|
|
|
|
|
Cash and
cash equivalents, beginning of period |
|
1,639.3 |
|
|
|
1,983.6 |
|
|
Cash and
cash equivalents, end of period |
|
2,941.4 |
|
|
|
1,808.6 |
|
|
Less
cash and cash equivalents of discontinued operations, end of
period |
|
— |
|
|
|
2.9 |
|
|
Cash and
cash equivalents of continuing operations, end of period |
$ |
2,941.4 |
|
|
$ |
1,805.7 |
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
Cash
paid for interest |
$ |
34.0 |
|
|
$ |
4.4 |
|
|
Cash
paid for income taxes, net of income tax refunds |
$ |
420.3 |
|
|
$ |
546.0 |
|
|
|
|
|
|
|
Automatic Data
Processing, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
Other Selected
Financial Data |
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share amounts) |
|
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended |
|
% Change |
|
|
March 31, |
|
As |
|
Constant |
|
|
|
2016 |
|
|
|
2015 |
|
|
Reported |
|
Dollar Basis |
|
Revenues from
continuing operations |
|
|
|
|
|
|
|
|
Employer Services |
$ |
2,576.7 |
|
|
$ |
2,446.4 |
|
|
|
5 |
% |
|
|
7 |
% |
|
PEO Services |
|
866.3 |
|
|
|
748.5 |
|
|
|
16 |
% |
|
|
16 |
% |
|
Other |
|
(194.4 |
) |
|
|
(170.6 |
) |
|
n/m |
|
n/m |
|
Total revenues from continuing
operations |
$ |
3,248.6 |
|
|
$ |
3,024.3 |
|
|
|
7 |
% |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
Segment earnings from
continuing operations |
|
|
|
|
|
|
|
|
Employer Services |
$ |
971.4 |
|
|
$ |
931.3 |
|
|
|
4 |
% |
|
|
5 |
% |
|
PEO Services |
|
97.9 |
|
|
|
80.5 |
|
|
|
22 |
% |
|
|
22 |
% |
|
Other |
|
(274.5 |
) |
|
|
(271.9 |
) |
|
n/m |
|
n/m |
|
Total pretax earnings from
continuing operations |
$ |
794.8 |
|
|
$ |
739.9 |
|
|
|
7 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
Segment margin |
|
2016 |
|
|
|
2015 |
|
|
Change |
|
|
|
Employer Services |
|
37.7 |
% |
|
|
38.1 |
% |
|
|
(0.4 |
)% |
|
|
|
PEO Services |
|
11.3 |
% |
|
|
10.8 |
% |
|
|
0.5 |
% |
|
|
|
Other |
n/m |
|
n/m |
|
n/m |
|
|
|
Total pretax margin |
|
24.5 |
% |
|
|
24.5 |
% |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
% Change |
|
|
March 31, |
|
As |
|
Constant |
|
|
|
2016 |
|
|
|
2015 |
|
|
Reported |
|
Dollar Basis |
|
Segment revenues from
continuing operations |
|
|
|
|
|
|
|
|
Employer Services |
$ |
6,920.1 |
|
|
$ |
6,660.0 |
|
|
|
4 |
% |
|
|
7 |
% |
|
PEO Services |
|
2,305.2 |
|
|
|
1,969.2 |
|
|
|
17 |
% |
|
|
17 |
% |
|
Other |
|
(455.8 |
) |
|
|
(385.2 |
) |
|
n/m |
|
n/m |
|
Total revenues from continuing
operations |
$ |
8,769.5 |
|
|
$ |
8,244.0 |
|
|
|
6 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
Segment earnings from
continuing operations |
|
|
|
|
|
|
|
|
Employer Services |
$ |
2,195.7 |
|
|
$ |
2,135.6 |
|
|
|
3 |
% |
|
|
4 |
% |
|
PEO Services |
|
280.2 |
|
|
|
226.2 |
|
|
|
24 |
% |
|
|
24 |
% |
|
Other |
|
(668.2 |
) |
|
|
(672.7 |
) |
|
n/m |
|
n/m |
|
Total pretax earnings from
continuing operations |
$ |
1,807.7 |
|
|
$ |
1,689.1 |
|
|
|
7 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
Segment margin |
|
2016 |
|
|
|
2015 |
|
|
Change |
|
|
|
Employer Services |
|
31.7 |
% |
|
|
32.1 |
% |
|
|
(0.3 |
)% |
|
|
|
PEO Services |
|
12.2 |
% |
|
|
11.5 |
% |
|
|
0.7 |
% |
|
|
|
Other |
n/m |
|
n/m |
|
n/m |
|
|
|
Total pretax margin |
|
20.6 |
% |
|
|
20.5 |
% |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
% Change |
|
|
March 31, |
|
As |
|
Constant |
|
Earnings per share
information: |
|
2016 |
|
|
|
2015 |
|
|
Reported |
|
Dollar Basis |
|
Net
earnings from continuing operations |
$ |
532.5 |
|
|
$ |
490.3 |
|
|
|
9 |
% |
|
|
9 |
% |
|
Net
earnings |
$ |
532.5 |
|
|
$ |
489.6 |
|
|
|
9 |
% |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding |
|
454.4 |
|
|
|
470.3 |
|
|
|
(3 |
)% |
|
|
n/a |
|
Basic
earnings per share from continuing operations |
$ |
1.17 |
|
|
$ |
1.04 |
|
|
|
13 |
% |
|
|
13 |
% |
|
Basic
earnings per share |
$ |
1.17 |
|
|
$ |
1.04 |
|
|
|
13 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding |
|
456.9 |
|
|
|
474.0 |
|
|
|
(4 |
)% |
|
|
n/a |
|
Diluted
earnings per share from continuing operations |
$ |
1.17 |
|
|
$ |
1.03 |
|
|
|
14 |
% |
|
|
14 |
% |
|
Diluted
earnings per share |
$ |
1.17 |
|
|
$ |
1.03 |
|
|
|
14 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
% Change |
|
|
March 31, |
|
As |
|
Constant |
|
Earnings per share
information: |
|
2016 |
|
|
|
2015 |
|
|
Reported |
|
Dollar Basis |
|
Net
earnings from continuing operations |
$ |
1,211.4 |
|
|
$ |
1,119.5 |
|
|
|
8 |
% |
|
|
10 |
% |
|
Net
earnings |
$ |
1,210.5 |
|
|
$ |
1,116.3 |
|
|
|
8 |
% |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding |
|
458.2 |
|
|
|
475.1 |
|
|
|
(4 |
)% |
|
|
n/a |
|
Basic
earnings per share from continuing operations |
$ |
2.64 |
|
|
$ |
2.36 |
|
|
|
12 |
% |
|
|
14 |
% |
|
Basic
earnings per share |
$ |
2.64 |
|
|
$ |
2.35 |
|
|
|
12 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding |
|
460.6 |
|
|
|
478.3 |
|
|
|
(4 |
)% |
|
|
n/a |
|
Diluted
earnings per share from continuing operations |
$ |
2.63 |
|
|
$ |
2.34 |
|
|
|
12 |
% |
|
|
14 |
% |
|
Diluted
earnings per share |
$ |
2.63 |
|
|
$ |
2.33 |
|
|
|
13 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
Key Statistics: |
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
Internal
revenue growth: |
|
|
|
|
|
|
|
|
Employer Services |
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
PEO Services |
|
16 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internal
revenue growth - Constant Dollar Basis: |
|
|
|
|
|
|
|
|
Employer Services |
|
7 |
% |
|
|
8 |
% |
|
|
|
|
|
PEO Services |
|
16 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employer
Services: |
|
|
|
|
|
|
|
|
Change in pays per control -
U.S. |
|
2.5 |
% |
|
|
3.1 |
% |
|
|
|
|
|
Change in client revenue retention
percentage - worldwide |
(0.3) pts |
|
(0.7) pts |
|
|
|
|
|
Employer Services/PEO new business
bookings growth - worldwide |
|
13 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PEO
Services: |
|
|
|
|
|
|
|
|
Paid PEO worksite employees at end
of period |
|
420,000 |
|
|
|
371,000 |
|
|
|
|
|
|
Average paid PEO worksite employees
during the period |
|
422,000 |
|
|
|
369,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
Key Statistics: |
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
Internal
revenue growth: |
|
|
|
|
|
|
|
|
Employer Services |
|
4 |
% |
|
|
5 |
% |
|
|
|
|
|
PEO Services |
|
17 |
% |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internal
revenue growth - Constant Dollar Basis: |
|
|
|
|
|
|
|
|
Employer Services |
|
7 |
% |
|
|
7 |
% |
|
|
|
|
|
PEO Services |
|
17 |
% |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employer
Services: |
|
|
|
|
|
|
|
|
Change in pays per control -
U.S. |
|
2.4 |
% |
|
|
3.0 |
% |
|
|
|
|
|
Change in client revenue retention
percentage - worldwide |
(1.0) pt |
|
0.1 pt |
|
|
|
|
|
Employer Services/PEO new business
bookings growth - worldwide |
|
14 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PEO
Services: |
|
|
|
|
|
|
|
|
Paid PEO worksite employees at end
of period |
|
420,000 |
|
|
|
371,000 |
|
|
|
|
|
|
Average paid PEO worksite employees
during the period |
|
405,000 |
|
|
|
356,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
% Change |
|
Average
investment balances at cost (in billions): |
|
|
|
|
|
|
|
|
Corporate, other than corporate
extended |
$ |
2.8 |
|
|
$ |
1.8 |
|
|
$ |
1.0 |
|
|
|
56 |
% |
|
Corporate extended |
|
1.4 |
|
|
|
1.1 |
|
|
|
0.3 |
|
|
|
27 |
% |
|
Total corporate |
|
4.2 |
|
|
|
2.9 |
|
|
|
1.3 |
|
|
|
45 |
% |
|
Funds held for clients |
|
26.7 |
|
|
|
26.2 |
|
|
|
0.5 |
|
|
|
2 |
% |
|
Total |
$ |
30.8 |
|
|
$ |
29.1 |
|
|
$ |
1.8 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
Average
interest rates earned exclusive of realized losses (gains) on: |
|
|
|
|
|
|
|
|
Corporate, other than corporate
extended |
|
0.6 |
% |
|
|
0.6 |
% |
|
|
|
|
|
Corporate extended |
|
1.6 |
% |
|
|
1.6 |
% |
|
|
|
|
|
Total corporate |
|
0.9 |
% |
|
|
1.0 |
% |
|
|
|
|
|
Funds held for clients |
|
1.5 |
% |
|
|
1.5 |
% |
|
|
|
|
|
Total |
|
1.5 |
% |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
unrealized gain position at end of period |
$ |
371.1 |
|
|
$ |
376.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
short-term financing (in billions): |
|
|
|
|
|
|
|
|
U.S. commercial paper
borrowings |
$ |
1.3 |
|
|
$ |
1.0 |
|
|
|
|
|
|
U.S. & Canadian reverse
repurchase agreement borrowings |
|
0.1 |
|
|
|
0.1 |
|
|
|
|
|
|
|
$ |
1.4 |
|
|
$ |
1.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest rates paid on: |
|
|
|
|
|
|
|
|
U.S. commercial paper
borrowings |
|
0.4 |
% |
|
|
0.1 |
% |
|
|
|
|
|
U.S. & Canadian reverse
repurchase agreement borrowings |
|
0.5 |
% |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on funds held for clients |
$ |
102.8 |
|
|
$ |
101.3 |
|
|
$ |
1.5 |
|
|
|
2 |
% |
|
Corporate extended interest income (C) |
|
5.6 |
|
|
|
4.4 |
|
|
|
1.1 |
|
|
|
26 |
% |
|
Corporate interest expense-short-term financing (C) |
|
(1.4 |
) |
|
|
(0.5 |
) |
|
|
(0.9 |
) |
|
|
(172 |
)% |
|
|
$ |
107.0 |
|
|
$ |
105.3 |
|
|
$ |
1.8 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
% Change |
|
Average
investment balances at cost (in billions): |
|
|
|
|
|
|
|
|
Corporate, other than corporate
extended |
$ |
2.4 |
|
|
$ |
1.9 |
|
|
$ |
0.6 |
|
|
|
30 |
% |
|
Corporate extended |
|
3.0 |
|
|
|
2.8 |
|
|
|
0.2 |
|
|
|
7 |
% |
|
Total corporate |
|
5.4 |
|
|
|
4.7 |
|
|
|
0.8 |
|
|
|
16 |
% |
|
Funds held for clients |
|
22.2 |
|
|
|
21.5 |
|
|
|
0.6 |
|
|
|
3 |
% |
|
Total |
$ |
27.6 |
|
|
$ |
26.2 |
|
|
$ |
1.4 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
Average
interest rates earned exclusive of realized losses (gains) on: |
|
|
|
|
|
|
|
|
Corporate, other than corporate
extended |
|
0.5 |
% |
|
|
0.6 |
% |
|
|
|
|
|
Corporate extended |
|
1.6 |
% |
|
|
1.7 |
% |
|
|
|
|
|
Total corporate |
|
1.1 |
% |
|
|
1.3 |
% |
|
|
|
|
|
Funds held for clients |
|
1.7 |
% |
|
|
1.7 |
% |
|
|
|
|
|
Total |
|
1.6 |
% |
|
|
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
unrealized gain position at end of period |
$ |
371.1 |
|
|
$ |
376.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
short-term financing (in billions): |
|
|
|
|
|
|
|
|
U.S. commercial paper
borrowings |
$ |
2.7 |
|
|
$ |
2.4 |
|
|
|
|
|
|
U.S. & Canadian reverse
repurchase agreement borrowings |
|
0.3 |
|
|
|
0.4 |
|
|
|
|
|
|
|
$ |
3.0 |
|
|
$ |
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest rates paid on: |
|
|
|
|
|
|
|
|
U.S. commercial paper
borrowings |
|
0.2 |
% |
|
|
0.1 |
% |
|
|
|
|
|
U.S. & Canadian reverse
repurchase agreement borrowings |
|
0.4 |
% |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on funds held for clients |
$ |
280.0 |
|
|
$ |
282.3 |
|
|
$ |
(2.3 |
) |
|
|
(1 |
)% |
|
Corporate extended interest income (C) |
|
36.4 |
|
|
|
35.7 |
|
|
|
0.6 |
|
|
|
2 |
% |
|
Corporate interest expense-short-term financing (C) |
|
(5.0 |
) |
|
|
(3.9 |
) |
|
|
(1.2 |
) |
|
|
(30 |
)% |
|
|
$ |
311.3 |
|
|
$ |
314.2 |
|
|
$ |
(2.8 |
) |
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
(C) While “Corporate extended interest income” and “Corporate
interest expense-short-term financing” are non-GAAP measures,
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: |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate extended interest income |
$ |
5.6 |
|
|
$ |
4.4 |
|
|
|
|
|
|
All
other interest income |
|
4.1 |
|
|
|
2.7 |
|
|
|
|
|
|
Total interest income on corporate
funds |
$ |
9.7 |
|
|
$ |
7.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate interest expense - short-term financing |
$ |
1.4 |
|
|
$ |
0.5 |
|
|
|
|
|
|
All
other interest expense |
|
14.9 |
|
|
|
0.3 |
|
|
|
|
|
|
Total interest expense |
$ |
16.3 |
|
|
$ |
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate extended interest income |
$ |
36.4 |
|
|
$ |
35.7 |
|
|
|
|
|
|
All
other interest income |
|
9.1 |
|
|
|
8.1 |
|
|
|
|
|
|
Total interest income on corporate
funds |
$ |
45.6 |
|
|
$ |
43.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate interest expense - short-term financing |
$ |
5.0 |
|
|
$ |
3.9 |
|
|
|
|
|
|
All
other interest expense |
|
33.1 |
|
|
|
1.1 |
|
|
|
|
|
|
Total interest expense |
$ |
38.1 |
|
|
$ |
4.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automatic Data Processing, Inc. and
Subsidiaries |
|
|
Consolidated Statement of Adjusted / Non-GAAP Financial
Information |
|
|
(in millions, except per share amounts) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within the tables above and below, we use the term "constant
dollar basis" so that certain financial measures can be viewed
without the impact of foreign currency fluctuations to facilitate
period-to-period comparisons of business performance. The
financial results on a "constant dollar basis" are determined by
calculating the current year result using foreign exchange rates
consistent with the prior year. We believe "constant dollar
basis" provides information that isolates the actual growth of our
operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles our reported results to
earnings from continuing operations before interest and income
taxes (“EBIT”), which excludes certain interest amounts. The
EBIT performance measure includes interest income earned on
investments associated with our client funds extended investment
strategy and interest expense on borrowings related to our client
funds extended investment strategy. We believe these amounts
to be fundamental to the underlying operations of our business
model. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
March 31, |
|
% Change |
|
March 31, |
|
% Change |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
As Reported |
|
Constant Dollar Basis |
|
|
2016 |
|
|
|
2015 |
|
|
As Reported |
|
Constant Dollar Basis |
|
Earnings
from continuing operations before income taxes |
|
$ |
794.8 |
|
|
$ |
739.9 |
|
|
|
7 |
% |
|
|
8 |
% |
|
$ |
1,807.7 |
|
|
$ |
1,689.1 |
|
|
|
7 |
% |
|
|
8 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
14.9 |
|
|
|
0.3 |
|
|
|
|
|
|
|
33.1 |
|
|
|
1.1 |
|
|
|
|
|
|
Interest income |
|
|
(4.1 |
) |
|
|
(2.7 |
) |
|
|
|
|
|
|
(9.1 |
) |
|
|
(8.1 |
) |
|
|
|
|
|
EBIT |
|
$ |
805.6 |
|
|
$ |
737.5 |
|
|
|
9 |
% |
|
|
10 |
% |
|
$ |
1,831.7 |
|
|
$ |
1,682.1 |
|
|
|
9 |
% |
|
|
10 |
% |
|
EBIT
Margin |
|
|
24.8 |
% |
|
|
24.4 |
% |
|
|
|
|
|
|
20.9 |
% |
|
|
20.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additionally, the following table reconciles EBIT and other
financial results to adjusted results that exclude the gain on the
sale of the AdvancedMD ("AMD") business and the gain on sale of a
building in the nine months ended March 31, 2016. We use
these adjusted results, among other measures, to evaluate our
operating performance in the absence of certain items and for
planning and forecasting of future periods. We believe
that EBIT, adjusted EBIT, adjusted provision for income
taxes, adjusted net earnings from continuing operations, adjusted
diluted earnings per share ("EPS") from continuing operations, and
adjusted EBIT margin provide relevant and useful information as
these measures allow investors to assess our performance in a
manner similar to the method used by management and improves our
ability to understand and assess our operating performance against
prior periods. Since these measures are not measures of
performance calculated in accordance to accounting principles
generally accepted in the United States of America (“U.S. GAAP”),
they should not be considered in isolation from, or as substitute
for, earnings from continuing operations before income taxes,
provision for income taxes, net earnings from continuing
operations, and diluted EPS from continuing operations, and they
may not be comparable to similarly titled measures used by other
companies. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
As Reported |
|
Constant Dollar Basis |
|
|
|
|
|
|
|
|
|
EBIT |
|
$ |
1,831.7 |
|
|
$ |
1,682.1 |
|
|
|
9 |
% |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
Gain on sale of building |
|
|
(13.9 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of AMD |
|
|
(29.1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBIT |
|
$ |
1,788.7 |
|
|
$ |
1,682.1 |
|
|
|
6 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
Adjusted
EBIT Margin |
|
|
20.4 |
% |
|
|
20.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
$ |
596.3 |
|
|
$ |
569.6 |
|
|
|
5 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of building |
|
|
(5.3 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of AMD |
|
|
(7.3 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
provision for income taxes |
|
$ |
583.7 |
|
|
$ |
569.6 |
|
|
|
2 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings from continuing operations |
|
$ |
1,211.4 |
|
|
$ |
1,119.5 |
|
|
|
8 |
% |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of building |
|
|
(13.9 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of AMD |
|
|
(29.1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes on gain
on sale of building |
|
|
5.3 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes on gain
on sale of AMD |
|
|
7.3 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net earnings from continuing operations |
|
$ |
1,181.0 |
|
|
$ |
1,119.5 |
|
|
|
5 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations |
|
$ |
2.63 |
|
|
$ |
2.34 |
|
|
|
12 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of building |
|
|
(0.02 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of AMD |
|
|
(0.05 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
diluted earnings per share from continuing operations |
|
$ |
2.56 |
|
|
$ |
2.34 |
|
|
|
9 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Safe Harbor Statement
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” 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 and retaining clients, and selling additional
services to clients; the pricing of products and services;
compliance with existing or new legislation or regulations; changes
in, or interpretations of, existing legislation or regulations;
overall market, political and economic conditions, including
interest rate and foreign currency trends; competitive conditions;
our ability to maintain our current credit rating and the impact on
our funding costs and profitability; security or privacy breaches,
fraudulent acts, and system interruptions and failures; 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,
2015 should be considered in evaluating any forward-looking
statements contained herein.
ADP and the ADP logo are registered trademarks of ADP, LLC. ADP
A more human resource. is a service mark of ADP, LLC. All other
marks are the property of their respective owners. Copyright © 2016
ADP, LLC. All rights reserved.
ADP-Investor Relations
Investor Relations Contacts:
Sara Grilliot
973.974.7834
Sara.Grilliot@ADP.com
Byron Stephen
973.974.7896
Byron.Stephen@ADP.com
Media Contact:
Andy Hilton
973.974.4462
Andy.Hilton@ADP.com
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