ADP Reports 16% EPS Increase for Fiscal 2001; Expects 13% to 15% EPS Growth in Fiscal 2002 Before Impact of Previously Reported Non-Recurring Items.Business Editors ROSELAND, N.J.--(BUSINESS WIRE)--Aug. 13, 2001 Automatic Data Processing Same as data processing. , Inc. (NYSE NYSE See: New York Stock Exchange :ADP (1) (Automatic Data Processing) Synonymous with data processing (DP), electronic data processing (EDP) and information processing. (2) (Automatic Data Processing, Inc., Roseland, NJ, www.adp. ) achieved record revenues and earnings in its fourth quarter and fiscal year ended June 30, 2001, Arthur F. Weinbach, chairman and chief executive officer, announced today. This represents ADP's 40th consecutive year of double-digit earnings per share growth and the 160th consecutive quarter of record highs in both revenue and earnings per share since becoming a public company in 1961. For fiscal 2001, revenues grew 12% to $7.0 billion. Prior to the previously announced non-cash, non-recurring write-off of ADP's investment in Bridge Information Systems, pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings increased 25%, net earnings advanced 16% on a higher effective tax rate and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 16% to $1.52 from $1.31 last year. Both the pretax earnings growth and increased tax rate have been impacted by the previously disclosed change in investment mix from non-taxable to taxable investments. Earnings per share after the non-recurring Bridge write-off were $1.44. Commenting on the overall results, Mr. Weinbach said, "We had a remarkably positive year in fiscal 2001 given the macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. climate. Revenue growth for the year in Employer Services was 12%, although new business sales slowed markedly in the second half of the year. Client retention was strong throughout the year in all of our major business units. Brokerage Services revenue growth was 19% (aided by the Cunningham Graphics acquisition), Dealer Services revenue decreased 5% and Claims Services revenue growth was 6%. "We are especially pleased that these results were achieved despite the rapid decline in economic conditions including the significant decrease in interest rates since January. In response to these conditions and the resulting lower revenue expectations, we instituted a series of initiatives which lowered our annual expense run rate by about $150 million as we exited fiscal 2001. "Our market leadership, significant potential in our core businesses and the strength of our recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue model position us well for the future. Our fiscal 2002 plans assume little change in the overall current economic environment. Revenue growth for 2002 is expected to be in the high single digits, starting slower in the first half and accelerating in the second half of the year as we reach the anniversary of this year's economic slowdown. We expect margin improvements in each major business unit. "We will adopt SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142 in fiscal 2002 which will eliminate goodwill amortization and will require pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." disclosure of fiscal 2001 results. Our projected earnings per share for fiscal 2002 is between $1.79 and $1.83. This represents 13% to 15% growth over the pro forma fiscal 2001 earnings per share of $1.59 and is the most appropriate way to view our growth. It represents 24% to 27% growth over the reported $1.44 for fiscal 2001." Below is a summary of comparative results.
Three Months Ended Twelve Months Ended
June 30, June 30,
2001 2000 2001(B) 2000
(000's omitted except per share data)
Revenues (R) $ 1,853,088 $ 1,724,201 $ 7,017,570 $ 6,287,512
Earnings before
income taxes(R) $ 420,100 $ 348,760 $ 1,525,010 $ 1,289,600
Provision for
incomes taxes $ 165,100 $ 124,970 $ 600,290 $ 448,800
Net Earnings(R) $ 255,000 $ 223,790 $ 924,720 $ 840,800
Average shares
outstanding 624,244 627,890 629,035 626,766
Basic earnings
per share(R) $ 0.41 $ 0.36 $ 1.47 $ 1.34
Diluted net
earnings(R) $ 255,490 $ 224,494 $ 927,060 $ 843,712
Diluted shares
outstanding 637,522 646,550 645,989 646,098
Diluted earnings
per share(R) $ 0.40 $ 0.35 $ 1.44 $ 1.31
Revenues by business
unit(A)
Employer Services $ 981,000 $ 891,000 $ 4,018,000 $ 3,579,000
Brokerage Services $ 578,000 $ 505,000 $ 1,756,000 $ 1,477,000
Dealer Services $ 176,000 $ 172,000 $ 691,000 $ 725,000
Pre-tax earnings by
business unit(A)
Employer Services $ 197,000 $ 151,000 $ 938,000 $ 775,000
Brokerage Services$ 129,000 $ 119,000 $ 335,000 $ 335,000
Dealer Services $ 26,000 $ 24,000 $ 101,000 $ 114,000
(A) Prior year's business unit results were restated using FY '01
budgeted foreign exchange rates.
(B) A $90 million ($54 million after tax) non-cash, non-recurring
write-off of the Company's investment in Bridge Information
Systems, Inc. was recorded in the fiscal year ended June 30,
2001.
(R) Record high
A live audio webcast of the quarterly conference call to be held today at 3:30 PM will be available to the public on a listen-only basis. To listen to the webcast, go to www.adp.com and click on the Web Conferencing A videoconferencing session via the Internet. In order to interact with other participants, attendees use either a Web application or an application downloaded into their client machines. icon. ADP, with over $7 billion in revenues and more than 500,000 clients, is one of the largest independent computing computing - computer services firms in the world. This report contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ from those expressed. Factors that could cause differences 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 Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. and employee benefits; overall economic trends, including interest rate and foreign currency trends; stock market activity; auto sales Auto Sales The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month. and related industry changes; employment levels; changes in technology; availability of skilled technical associates; and the impact of new acquisitions. ADP disclaims any obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise. |
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