ADP Reports Record Third Fiscal Quarter; EPS Increases By 16%.ROSELAND, N.J.--(BUSINESS WIRE)--April 15, 1999-- Automatic Data Processing Same as data processing. , Inc. achieved record revenue and earnings in its third quarter of fiscal 1999, 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 151st consecutive quarter of reporting record highs in both revenue and earnings per share. All prior period results have been restated for the March 1999 pooling of The Vincam Group, a leading Professional Employer Organization A professional employer organization (PEO) provides outsourcing of payroll, workers' compensation, human resources and employee benefits administration. It does this by hiring a client company’s employees, thus becoming their employer of record. providing a suite of human resource functions to small and medium sized employers on an outsourced basis. Revenue increased 13% from last year to about $1.5 billion in the quarter ended March 31, 1999. Prior to the impact of several non-recurring transactions, pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings in the quarter increased 20% and net earnings increased 18%. As reported, pretax earnings were up 25% and net earnings 18%. 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 $.36 from $.31 last year. Commenting on the quarter, Weinbach said, "Revenue growth in Employer Services was 17%, reflecting strong new business sales and internal revenue growth. Brokerage revenue growth was 2%, impacted by the sale of the front office business. Excluding this sale, Brokerage revenue growth was 23%, helped by strong trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. . Dealer Services revenue growth of 3% was affected by slower activity in consulting and several small non-core Dealer businesses. Claims revenue growth of 66% was aided by last May's acquisition of Audatex, the leading provider of automotive claims estimating services in Europe. "We are pleased with our results and outlook. Revenue growth will slow from current rates beginning in our 4th quarter as a result of reaching the anniversary date of the Audatex acquisition and the dispositions of our Peachtree Software business in March and our Electronic Banking business in April. We believe margins will continue to strengthen in the remainder of the year and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. growth will be about 15% in the fourth quarter," Weinbach concluded. Below is a summary of unaudited comparative results.
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
(Restated for March 1999 Vincam Pooling)
(000's omitted except per share data)
Revenue(R) $1,514,132 $1,341,250 $4,069,454 $3,589,646
Earnings before
income taxes(R) $ 351,600(B) $ 281,479 $ 791,817 (A) $ 650,541
Provision for
income taxes $ 125,950(B) $ 89,466 $ 286,766 (A) $ 206,127
---------- ---------- ---------- ----------
Net earnings(R) $ 225,650(B) $ 192,013 $ 505,051 (A) $ 444,414
Average shares
outstanding 617,364 606,822 613,927 597,773
Basic earnings
per share(R) $ .37 $ .32 $ .82 $ .74
Diluted net
earnings(R) $ 226,497 $ 193,446 $ 507,896 $ 451,065
Diluted shares
outstanding 637,102 631,899 635,130 625,926
Diluted earnings
per share(R) $ .36 $ .31 $ .80 $ .72
(R) Record high (A) The quarter ended Dec. 31, 1998 includes a pretax gain of approximately $22 million, a provision for income taxes of approximately $25 million, and a net loss of approximately $3 million resulting from the sale of the Brokerage Services "front office" market data business. The quarter ended Dec. 31, 1998 also includes approximately $21 million of transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). and other non-recurring adjustments ($14 million after tax) recorded by Vincam prior to the March 1999 pooling transaction. (B) In the quarter ended March 31, 1999 the Company sold its Peachtree Software business and decided to exit several other businesses and contracts. The combination of these transactions and certain other non-recurring charges resulted in approximately $15M of pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. and a $15M provision for income taxes in the quarter. 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. , with over $5 billion in revenue and over 425,000 clients, is one of the largest independent computing computing - computer services firms in the world. 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 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; overall economic trends, including interest rate and foreign currency trends; impact of Year 2000; 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. |
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