ADP Reports Record Third Fiscal Quarter; Earnings Per Share Increases by 10%.Business Editors ROSELAND, N.J.--(BUSINESS WIRE)--April 15, 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 third 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 163rd consecutive quarter of record highs in both revenue and earnings per share since becoming a public company in 1961. Revenues approximated $1.9 billion in the quarter ended March 31, 2002, up 1% 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 pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta 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 10% to $.56 from $.51 last year. Commenting on the quarter, Mr. Weinbach said, "ADP continued excellent expense management during a period of slow revenue growth and lower interest rates compared with last year. Revenue growth in Employer Services was 4% in the quarter. Growth was impacted by fewer pays per control (the number of employees our clients pay), 2% new business sales growth (an improvement over prior quarters), and lower client retention, primarily due to bankruptcies. Brokerage Services revenues increased 4% this quarter; excluding acquisitions revenues declined 3%. Revenue per trade in our back office business was reduced by a lower percentage of retail transactions compared to institutional transactions. In our investor communications business the increased use of electronic delivery and the "householding", or consolidation of accounts for proxy mailings, reduced 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. revenue but slightly improved our overall profitability. Brokerage Services revenue growth was also impacted by the 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 in research print and implementation services. Dealer Services revenues increased 1% and Claims Services revenues declined 1% in the quarter." "Our businesses are not yet showing signs of economic recovery. Employer Services, in particular, will likely lag a recovery by several months. We are not anticipating the benefits of an improvement in the economy in the near term and are implementing further cost reductions to keep our expense levels in line with continued low revenue growth expectations. "Despite the near-term lower revenue growth, ADP's strong 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 business model, combined with good cost management and market leading products, position us well for an economic rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. "We remain comfortable with our fiscal 2002 forecast of low single-digit revenue growth and double-digit (about 10%) 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 Nine Months Ended
March 31, March 31,
Pro Forma Pro Forma
2002 2001(A)(B) 2002 2001(A)(B)
(In thousands, except per share amounts)
Revenues (R) $1,870,036 $1,853,765 $5,158,947 $5,037,716
Earnings before
income taxes (R)$ 571,850 $ 489,370 $1,321,950 $1,144,810
Provision for
incomes taxes $ 219,590 $ 188,350 $ 508,490 $ 440,310
Net earnings (R) $ 352,260 $ 301,020 $ 813,460 $ 704,500
Average shares
outstanding 620,118 629,905 619,344 630,669
Basic EPS (R) $ 0.57 $ 0.48 $ 1.31 $ 1.12
Previously
reported
basic EPS (R) $ 0.46 $ 1.06
Diluted net
earnings (R) $ 352,633 $ 301,556 $ 814,713 $ 706,350
Diluted shares
outstanding 632,307 645,674 631,706 648,787
Diluted EPS (R) $ 0.56 $ 0.47 $ 1.29 $ 1.09
Previously
reported
diluted EPS (R) $ 0.45 $ 1.04
Revenues by
business unit
Employer
Services $ 1,174,000 $ 1,127,000 $3,173,000 $3,000,000
Brokerage
Services $ 460,000 $ 443,000 $1,184,000 $1,169,000
Dealer
Services $ 176,000 $ 175,000 $ 525,000 $ 509,000
Pre-tax earnings
by business unit
Employer
Services $ 386,000 $ 339,000 $ 875,000 $ 740,000
Brokerage
Services $ 87,000 $ 80,000 $ 216,000 $ 204,000
Dealer
Services $ 30,000 $ 27,000 $ 87,000 $ 75,000
(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
ended March 31, 2001 and December 31, 2000 both include 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 $0.51 and $1.17 for the
quarter and nine months ended March 31, 2001, respectively.
(R) Record high.
Note: Our Consolidated Statement of Earnings for the three months and nine months ended March 31st will be available on our website (www.adp.com and go to Investor Information) on Tuesday, April 16th. An analyst conference call to review the third-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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