ADP Reports Record Second Fiscal Quarter; Earnings Per Share Increases by 11%.Business Editors ROSELAND, N.J.--(BUSINESS WIRE)--Jan. 17, 2002 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 second quarter of fiscal 2002, Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism F. Weinbach, chairman and chief executive officer, announced today. This represents ADP's 162nd consecutive quarter of record highs in both revenue and earnings per share since becoming a public company in 1961. Revenues approximated $1.7 billion in the quarter ended December December: see month. 31, 2001, up 3% from last year. Excluding the impact of the prior year non-recurring Bridge Information Systems, Inc. write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. , pre-tax earnings and net earnings both increased 7%, 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 , on fewer shares outstanding, increased 11% to $.42 from $.38 last year. Commenting on the quarter, Mr. Weinbach said, "Revenue growth in Employer Services was 6% as pays per control (the number of employees our clients' pay) and client retention were lower than last year as a result of the weak economy. New business sales were flat compared to last year, a good result given the economy. Brokerage revenues declined 1%. Excluding the recent acquisition of IBM's output services print business, revenues declined 7%. Revenues were impacted by the mix of back office client transactions in the quarter which resulted in lower revenue per trade, and the continued reduction in discretionary spending in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, particularly in research print and implementation services. Postage POSTAGE. The money charged by law for carrying letters, packets and documents by mail. By act of congress of March 3, 1851, Minot's Statute at Large, U. S. 587, it is enacted as follows: 2.-Sec. 1. revenues, which are primarily offset by postage expenses, declined as a result of our ongoing efforts to move the proxy mailing and voting process towards electronic delivery and the "householding", or consolidation of accounts. Dealer Services revenue growth and Claims Services revenue growth were 3% in the quarter. "Our revenues continue to be impacted by lower interest rates and an overall weak economy. Although we expect revenue growth to improve slightly in the second half, the decline in interest income will be more pronounced later in the year due to our higher average client balances and the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of maturing investments in our portfolio at lower yields. Our cost control actions have been very effective and have enabled us to improve margins in each of our businesses. "We continue to forecast mid single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. revenue growth for the full year and double-digit earnings per share growth over fiscal 2001 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 results of $1.59," Mr. Weinbach concluded. ADP, with approximately $7 billion in revenues and more than 500,000 clients, is one of the largest independent computing computing - computer services firms in the world. Below is a summary of unaudited comparative results:
Three Months Ended Six Months Ended
December 31, December 31,
Pro Forma Pro Forma
2001 2000(A)(B) 2001 2000(A)(B)
(In thousands, except per share amounts)
Revenues (R) $ 1,681,028 $ 1,639,822 $ 3,288,911 $ 3,183,951
Earnings before
income taxes (R) $ 429,900 $ 356,350 $ 750,100 $ 655,440
Provision for
incomes taxes $ 165,300 $ 137,130 $ 288,900 $ 251,960
Net earnings (R) $ 264,600 $ 219,220 $ 461,200 $ 403,480
Average shares
outstanding 617,335 632,082 618,957 631,035
Basic EPS (R) $ 0.43 $ 0.35 $ 0.75 $ 0.64
Previously
reported basic
EPS (R) $ 0.33 $ 0.60
Diluted net
earnings (R) $ 265,003 $ 219,855 $ 462,079 $ 404,790
Diluted shares
outstanding 630,237 651,807 631,501 650,407
Diluted EPS (R) $ 0.42 $ 0.34 $ 0.73 $ 0.62
Previously
reported diluted
EPS (R) $ 0.32 $ 0.59
Revenues by
business unit
Employer
Services $ 1,026,000 $ 972,000 $ 1,998,000 $ 1,873,000
Brokerage
Services $ 364,000 $ 367,000 $ 724,000 $ 726,000
Dealer
Services $ 174,000 $ 169,000 $ 349,000 $ 334,000
Pre-tax earnings
by business unit
Employer
Services $ 274,000 $ 225,000 $ 489,000 $ 401,000
Brokerage
Services $ 64,000 $ 61,000 $ 130,000 $ 124,000
Dealer
Services $ 30,000 $ 27,000 $ 57,000 $ 48,000
(A) Prior year's results include certain reclassifications to
conform to the current presentation. Results by business unit
are restated using the fiscal 2002 budgeted foreign exchange
rates. The quarter and six months ended December 31, 2000
includes a $45 million non-recurring write-off ($27 million
after tax) of the Company's investment in Bridge Information
Systems, Inc. ("Bridge").
(B) Prior year's results reflect the pro forma impact relating to
the adoption of SFAS No. 142, which eliminates goodwill
amortization. Business unit results include certain
allocations and are not impacted by SFAS No.142. Diluted
earnings per share, excluding the non-recurring Bridge
write-off, are $0.38 and $0.66 for the quarter and six months
ended December 31, 2000, respectively.
(R) Record high.
An analyst conference call to review the second quarter results will be held at 3:30 PM today. A live audio webcast of the call 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 Webcast icon. This release 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 that 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 obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. |
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