ADP Reports Third Quarter Fiscal 2006 Results; Revenues Grow 10%; EPS from Continuing Operations Increases 24%; Affirms Fiscal 2006 Guidance.ROSELAND, N.J. -- 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. ) reported 10% revenue growth, to $2.4 billion, and $0.61 earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third fiscal quarter ended March 31, 2006, 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. On an as reported basis, including stock compensation expense in the current period, pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern and net earnings from continuing operations grew 12% and 11%, respectively, 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 from continuing operations increased 13% from $0.54 per share a year ago. Fiscal 2006 earnings comparisons are affected by the inclusion of stock compensation expense as of July July: see month. 1, 2005. On a comparable basis, including stock compensation expense in the third quarter of fiscal 2005, pretax and net earnings from continuing operations each grew 22%, and diluted earnings per share from continuing operations increased 24% from $0.49 per share a year ago. On April 13, 2006, ADP completed the sale of its Claims Services (CSG CSG - constructive solid geometry ) business with annual revenues of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $415 million. ADP expects to report a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. pretax gain of approximately $600 million, or $480 million after tax, and net cash from the transaction of approximately $760 million, which are subject to final closing adjustments. Third quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. revenues and pretax earnings from continuing operations for fiscal 2006 and fiscal 2005 do not include CSG. The results of operations for this business are reported within discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in the third quarter and in prior periods. The one-time gain from this transaction will be reported in discontinued operations in the fourth quarter. Commenting on the results, Mr. Weinbach said, "We are pleased with our strong results for the third quarter. Employer Services' revenues increased 9%, with 10% internal growth, compared with the third quarter last year. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , revenues from our core payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. and payroll tax 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. filing business grew 8% in the quarter and beyond payroll revenues grew 14%. New business sales in the quarter, which reflect annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. 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. revenues anticipated from new orders, grew 8% in the United States and 10% worldwide. As we anticipated, our international business sales results were strong. We are forecasting about 10% sales growth for the year. In the United States, the number of employees on our clients' payrolls increased 2.7%, with growth in all market segments. The number of employees on our clients' payrolls in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). continued to hold flat for a second consecutive
quarter after several quarters of decline. During this critical year-end year-end also year·endn. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. retention period we reached a new record level of client retention in the United States for both the third quarter and year to date. "Brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. Services' revenues grew 6%, all internal, compared with last year's third quarter, driven primarily by growth in our beyond beneficial products within our investor communications business. Revenues from new sales in transaction reporting and increased volumes from existing clients in fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. drove beyond beneficial products' revenue growth of 18%. Beneficial proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. and interim communications revenues declined 3% in the quarter due to timing of equity proxy mailings and less mutual fund meeting activity, partially offset by stock record growth. Back office revenues grew 4%, reflecting increased trade volumes of 17%, partially offset by a decline in revenue per trade of 13% resulting from a higher level of lower-rate institutional trades. Brokerage Services' pretax margin declined 260 basis points due to investor communications' higher new business implementation costs, various one-time charges and a change in the mix of mailings in the quarter. Securities Clearing and Outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. Services' (SCOS SCOS Supply Chain Operating Services (i2) SCOS Standing Conference on Organizational Symbolism SCOS Spacecraft Operating System SCOS Scottish Chamber of Safety SCOS Service Center Organization Study ) revenues were $21 million for the quarter, in line with our expectations. SCOS sales and sales pipeline continue to be strong and ahead of our expectations. "Dealer Services' revenues grew 21%, 4% internally, favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the acquisition of UK-based Kerridge Kerridge is a village in Cheshire, England, part of the parish of Bollington. Kerridge borders the neighbouring parish of Rainow. It is named for the Kerridge hill – one of the western foothills of the Pennines – on which it stands. Computer Company Ltd. Pretax margin declined 250 basis points primarily due to restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Kerridge acquisition. Dealer Services was awarded a new sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. to be the sole dealer management systems (DMS (1) (Document Management System) See document management. (2) (Defense Messaging System) An X.500-compliant messaging system developed by the U.S. Dept. of Defense. ) provider for a large dealership group in the United States with approximately 95 dealer sites. 70% of these sites already use ADP Dealer Services' DMS and we expect to convert the remaining 30% over the next 18 - 20 months. "Interest on client funds grew nearly 34% over last year's third quarter, to $166 million, based on a 10% increase in average client funds balances and higher interest rates. For the full year, we are forecasting client funds interest income of over $540 million. This forecast is based on 10% anticipated growth in average balances and a portfolio yield of about 4% for the full year, an improvement of 60 basis points. "Pretax earnings in 'Other' increased $57 million in the third quarter, assuming stock compensation was expensed in last year's third quarter, primarily due to a decline in the client funds interest offset of $25.8 million, lower net realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. of $9.5 million and lower stock compensation expense of $4.6 million. "We continue to anticipate 10% revenue growth for fiscal 2006, and 200 basis points of overall pretax margin expansion. For the full year, we are forecasting pretax margin expansion for Employer Services and Brokerage Services of 100 basis points and 40 basis points, respectively, as well as improvement in the client funds interest offset and lower stock compensation expense. Dealer Services' pretax margin is forecasted to decline 50 basis points as we integrate the Kerridge acquisition. Our earnings per share forecast from continuing operations of $1.83 - $1.86, or 24% - 26% growth, remains unchanged. The forecast includes $10 million of increased income tax expense from an anticipated cash repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of the international cash proceeds from the sale of CSG and assumes stock compensation was expensed in fiscal 2005. We remain confident in achieving results toward the high end of the range. "Corporate cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has were $2.0 billion at March 31, 2006 prior to the inclusion of approximately $760 million net cash received from the April 13, 2006 sale of CSG. Fiscal year-to-date, we have acquired over 12.6 million ADP shares for treasury for approximately $565 million. Share buy-back activity has increased, and we plan to continue to increase the level of share buybacks because we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our future opportunities," Mr. Weinbach concluded. The following items reflect the operations of CSG and the Brokerage Services' financial print business as discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: businesses and are posted to the investor relations Investor relations The process by which the corporation communicates with its investors. home page (http://www.investquest.com/iq/a/aud/index.htm) of our website at www.adp.com under financial data: --Quarterly and full-year statements of earnings for fiscal 2005 (not adjusted for stock compensation expense) --Statements of earnings for the first and second quarters of fiscal 2006 --Tables containing fiscal 2005 quarterly detail adjusted for stock compensation expense --Historical revenue and pretax margin by reportable segment (periods prior to fiscal year 2006 are not adjusted for stock compensation expense) An analyst conference call to review the third quarter results will be held today, Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 28, at 1:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . 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. ADP's news releases, current financial information, SEC filings and Investor Relations presentations are accessible at the same website. ADP, with over $8.0 billion in revenues and more than 600,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and information-based business solutions.
Automatic Data Processing, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In millions, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 (B) 2005 (C) 2006 (B) 2005 (C)
--------- --------- --------- ---------
Revenues, other than interest
on funds held for Employer
Services' clients and PEO
revenues $2,074.8 $1,926.3 $5,497.3 $5,093.2
Interest on funds held for
Employer Services' clients 166.2 124.5 393.5 300.3
PEO revenues (A) 197.6 164.2 516.9 423.1
--------- --------- --------- ---------
Total revenues 2,438.6 2,215.0 6,407.7 5,816.6
--------- --------- --------- ---------
Operating expenses 1,148.5 1,015.5 3,036.3 2,702.0
Selling, general and
administrative expenses 517.3 485.5 1,432.5 1,339.6
Systems development and
programming costs 146.6 136.5 434.5 399.8
Depreciation and amortization 70.9 69.6 213.5 204.2
Other income, net (16.1) (1.3) (27.5) (24.2)
--------- --------- --------- ---------
Total expenses 1,867.2 1,705.8 5,089.3 4,621.4
--------- --------- --------- ---------
Earnings from continuing
operations before income
taxes 571.4 509.2 1,318.4 1,195.2
Provision for income taxes 215.9 190.2 499.1 446.6
--------- --------- --------- ---------
Net earnings from continuing
operations $355.5 $319.0 $819.3 $748.6
--------- --------- --------- ---------
Earnings from discontinued
operations, net of provision
for income taxes of $7.6 and
$9.4 for the three months
ended March 31, 2006 and
2005, respectively, and $15.5
and $23.3 for the nine months
ended March 31, 2006 and
2005, respectively 15.1 19.4 31.0 48.1
--------- --------- --------- ---------
Net earnings $370.6 $338.4 $850.3 $796.7
========= ========= ========= =========
Basic earnings per share from
continuing operations $0.62 $0.55 $1.42 $1.28
========= ========= ========= =========
Basic earnings per share from
discontinued operations $0.03 $0.03 $0.05 $0.08
========= ========= ========= =========
Basic earnings per share $0.64 $0.58 $1.47 $1.37
========= ========= ========= =========
Diluted earnings per share
from continuing operations $0.61 $0.54 $1.41 $1.27
========= ========= ========= =========
Diluted earnings per share
from discontinued operations $0.03 $0.03 $0.05 $0.08
========= ========= ========= =========
Diluted earnings per share $0.64 $0.57 $1.46 $1.35
========= ========= ========= =========
Dividends per common share $0.1850 $0.1550 $0.5250 $0.4500
========= ========= ========= =========
(A) Net of pass-through costs of $1,957.6 and $1,531.9 for the three
months ended March 31, 2006 and 2005, respectively, and $5,167.5
and $4,033.4 for the nine months ended March 31, 2006 and 2005,
respectively.
(B) The Consolidated Statements of Earnings for the three and nine
months ended March 31, 2006 reflect the results of the Company on
an "as reported" basis and include incremental stock compensation
expense relating to the Company's stock compensation plans of $7.6
and $23.5 in operating expenses, $19.8 and $61.9 in selling,
general and administrative expenses and $7.8 and $24.4 in systems
development and programming costs, respectively, as well as a
related tax benefit of $9.9 and $30.3 in provision for income
taxes for the three and nine months ended March 31, 2006,
respectively, in accordance with SFAS No. 123R, "Share-Based
Payment," which the Company adopted as of July 1, 2005.
(C) The Consolidated Statements of Earnings for the three and nine
months ended March 31, 2005 reflect the results of the Company on
an "as reported" basis and do not include incremental stock
compensation expense.
In order to show the results for the three and nine months ended
March 31, 2006 and 2005 on a comparable basis, adjustments for
incremental stock compensation expense relating to the Company's
stock compensation plans are shown in the Consolidated Statements
of Earnings - Comparable Basis, as Adjusted for Stock Compensation
Expense for the Three & Nine Months Ended March 31, 2005 that
follows.
Automatic Data Processing, Inc. and Subsidiaries
Consolidated Statements of Earnings - Comparable Basis, as Adjusted
-----------------------------
for Stock Compensation Expense for the Three & Nine Months Ended
----------------------------------------------------------------
March 31, 2005
--------------
(In millions, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 (B) 2005 (C) 2006 (B) 2005 (C)
--------- --------- --------- ---------
Revenues, other than interest
on funds held for Employer
Services' clients and PEO
revenues $2,074.8 $1,926.3 $5,497.3 $5,093.2
Interest on funds held for
Employer Services' clients 166.2 124.5 393.5 300.3
PEO revenues (A) 197.6 164.2 516.9 423.1
--------- --------- --------- ---------
Total revenues 2,438.6 2,215.0 6,407.7 5,816.6
--------- --------- --------- ---------
Operating expenses 1,148.5 1,025.0 3,036.3 2,731.8
Selling, general and
administrative expenses 517.3 505.7 1,432.5 1,408.9
Systems development and
programming costs 146.6 146.6 434.5 431.6
Depreciation and amortization 70.9 69.6 213.5 204.2
Other income, net (16.1) (1.3) (27.5) (24.2)
--------- --------- --------- ---------
Total expenses 1,867.2 1,745.6 5,089.3 4,752.3
--------- --------- --------- ---------
Earnings from continuing
operations before income
taxes 571.4 469.4 1,318.4 1,064.3
Provision for income taxes 215.9 179.1 499.1 409.9
--------- --------- --------- ---------
Net earnings from continuing
operations $355.5 $290.3 $819.3 $654.4
--------- --------- --------- ---------
Earnings from discontinued
operations, net of provision
for income taxes of $7.6 and
$8.8 for the three months
ended March 31, 2006 and
2005, respectively, and $15.5
and $21.4 for the nine months
ended March 31, 2006 and
2005, respectively 15.1 17.8 31.0 42.7
--------- --------- --------- ---------
Net earnings $370.6 $308.1 $850.3 $697.1
========= ========= ========= =========
Basic earnings per share from
continuing operations $0.62 $0.50 $1.42 $1.12
========= ========= ========= =========
Basic earnings per share from
discontinued operations $0.03 $0.03 $0.05 $0.07
========= ========= ========= =========
Basic earnings per share $0.64 $0.53 $1.47 $1.19
========= ========= ========= =========
Diluted earnings per share
from continuing operations $0.61 $0.49 $1.41 $1.11
========= ========= ========= =========
Diluted earnings per share
from discontinued operations $0.03 $0.03 $0.05 $0.07
========= ========= ========= =========
Diluted earnings per share $0.64 $0.52 $1.46 $1.18
========= ========= ========= =========
Dividends per common share $0.1850 $0.1550 $0.5250 $0.4500
========= ========= ========= =========
(A) Net of pass-through costs of $1,957.6 and $1,531.9 for the three
months ended March 31, 2006 and 2005, respectively, and $5,167.5
and $4,033.4 for the nine months ended March 31, 2006 and 2005,
respectively.
(B) The Consolidated Statements of Earnings for the three and nine
months ended March 31, 2006 reflect the results of the Company on
an "as reported" basis and include incremental stock compensation
expense relating to the Company's stock compensation plans of $7.6
and $23.5 in operating expenses, $19.8 and $61.9 in selling,
general and administrative expenses and $7.8 and $24.4 in systems
development and programming costs, respectively, as well as a
related tax benefit of $9.9 and $30.3 in provision for income
taxes for the three and nine months ended March 31, 2006,
respectively, in accordance with SFAS No. 123R, "Share-Based
Payment," which the Company adopted as of July 1, 2005.
(C) The adjusted Consolidated Statements of Earnings for the three and
nine months ended March 31, 2005 include adjustments for
incremental stock compensation expense relating to the Company's
stock compensation plans of $9.5 and $29.8 in operating expenses,
$20.2 and $69.3 in selling, general and administrative expenses
and $10.1 and $31.8 in systems development and programming costs,
respectively, as well as a related tax benefit of $11.1 and $36.7
in provision for income taxes for the three and nine months ended
March 31, 2005, respectively.
Tables showing fiscal 2005 quarterly detail, as adjusted for stock
compensation expense related to the Company's stock compensation
plans, are posted to the investor relations homepage of our
website at www.adp.com under "financial data."
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data
(In millions, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 (B) 2006 2005 (B)
--------- --------- --------- ---------
Revenues (A)
Employer Services $1,652.1 $1,510.5 $4,324.1 $3,951.2
Brokerage Services 482.9 455.1 1,203.8 1,106.9
Dealer Services 300.4 249.2 824.3 735.3
Securities Clearing and
Outsourcing Services 20.6 21.8 58.1 37.2
Other (B) (17.4) (21.6) (2.6) (14.0)
--------- --------- --------- ---------
$2,438.6 $2,215.0 $6,407.7 $5,816.6
========= ========= ========= =========
Pre-tax earnings from continuing
operations (A)
Employer Services $502.9 $452.9 $1,083.8 $958.1
Brokerage Services 64.3 71.6 171.2 163.6
Dealer Services 38.0 38.0 119.4 112.7
Securities Clearing and
Outsourcing Services (6.6) (9.3) (26.0) (14.5)
Other (B) (27.2) (83.8) (30.0) (155.6)
--------- --------- --------- ---------
$571.4 $469.4 $1,318.4 $1,064.3
========= ========= ========= =========
(A) Prior year's segment results were adjusted to reflect fiscal year
2006 budgeted foreign exchange rates.
(B) Fiscal year 2005 adjusted to include incremental stock
compensation expense of $39.8 and $130.9 for the three and nine
months ended March 31, 2005, respectively.
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
--------- -------- --------- --------
Components of Other Income, net:
--------------------------------
Interest income on corporate
funds $(23.9) $(15.2) $(95.6) $(66.2)
Interest expense 7.0 3.6 51.3 22.5
Realized losses (gains) on
available-for-sale securities,
net 0.8 10.3 16.8 19.5
--------- -------- --------- --------
Total other income, net $(16.1) $(1.3) $(27.5) $(24.2)
========= ======== ========= ========
Earnings per share information:
-------------------------------
Net earnings from continuing
operations $355.5 $319.0 $819.3 $748.6
Net earnings $370.6 $338.4 $850.3 $796.7
Basic weighted average shares
outstanding 577.5 584.0 577.0 583.6
Basic earnings per share from
continuing operations $0.62 $0.55 $1.42 $1.28
Basic earnings per share $0.64 $0.58 $1.47 $1.37
Diluted net earnings from
continuing operations $355.7 $319.3 $820.1 $749.4
Diluted net earnings $370.8 $338.6 $851.1 $797.4
Diluted weighted average shares
outstanding 582.8 590.5 582.7 590.5
Diluted earnings per share from
continuing operations $0.61 $0.54 $1.41 $1.27
Diluted earnings per share $0.64 $0.57 $1.46 $1.35
Three Months Ended Nine Months Ended
March 31, 2005 March 31, 2005
Comparable Basis, Comparable Basis,
As Adjusted for Stock As Adjusted for Stock
Compensation Expense Compensation Expense
--------------------- ---------------------
Net earnings from
continuing operations $290.3 $654.4
Net earnings $308.1 $697.1
Basic weighted average
shares outstanding 584.0 583.6
Basic earnings per share
from continuing
operations $0.50 $1.12
Basic earnings per share $0.53 $1.19
Diluted net earnings from
continuing operations $290.6 $655.2
Diluted net earnings $308.4 $697.9
Diluted weighted average
shares outstanding 590.5 590.5
Diluted earnings per share
from continuing
operations $0.49 $1.11
Diluted earnings per share $0.52 $1.18
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data (Continued)
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
--------- -------- --------- --------
Key Statistics:
---------------
Internal revenue growth:
Employer Services 10% 9% 10% 7%
Brokerage Services 6% 9% 9% 10%
Dealer Services 4% 4% 4% 6%
Average investment balances at
cost (in billions):
Corporate investments $2.1 $2.2 $3.4 $3.1
Funds held for clients 16.3 14.8 13.2 11.9
--------- -------- --------- --------
Total $18.4 $17.0 $16.6 $15.0
========= ======== ========= ========
Average interest rates earned
exclusive of realized losses
(gains) on:
Corporate investments 4.48% 2.81% 3.77% 2.77%
Funds held for clients 4.14% 3.40% 3.96% 3.42%
Total 4.18% 3.33% 3.92% 3.29%
Fiscal 2006 earnings per share guidance
---------------------------------------
Fiscal Fiscal Year-Over-Year
2005 2006 (F) Growth (F)
------ --------------- --------------
Diluted EPS, as reported:
Continuing Operations $1.69
Discontinued Operations
Brokerage Services
Financial Print
Business -
Claims Services
Business 0.10
------
Diluted EPS, as reported $1.79
Less: Pro forma EPS impact of
stock compensation expense
on:
Continuing Operations 0.21
Discontinued Operations
Brokerage Services
Financial Print
Business -
Claims Services
Business 0.01
Pro forma EPS impact of stock ------
compensation expense 0.22
Diluted EPS assuming stock
compensation expensed in both
periods:
Continuing Operations $1.48 $1.83 - $1.86 24% - 26%
Discontinued Operations
Brokerage Services
Financial Print
Business - (0.02)
Claims Services
Business 0.09 0.88 - 0.92
Diluted EPS, assuming stock
compensation expensed in both------ ---------------
periods $1.57(P) $2.69 - $2.76
====== ===============
Diluted EPS assuming stock
compensation not expensed in
either period:
Continuing Operations $1.69 $2.01 - $2.04 19% - 21%
Discontinued Operations
Brokerage Services
Financial Print
Business - (0.02)
Claims Services
Business 0.10 0.89 - 0.93
Diluted EPS, assuming stock
compensation not expensed in ------ ---------------
either period $1.79 $2.88 - $2.95(P)
====== ===============
(F) Forecast
(P) Pro forma
Automatic Data Processing, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
March 31, June 30,
2006 2005
----------- -----------
(Unaudited)
Assets
------
Cash and cash equivalents/Short-term marketable
securities $1,620.8 $1,549.4
Securities clearing receivables 962.2 965.2
Other current assets 1,830.1 1,693.8
Assets of discontinued operations 611.5 661.5
----------- -----------
Total current assets 5,024.6 4,869.9
Long-term marketable securities 353.4 447.9
Property, plant and equipment, net 742.8 637.9
Other non-current assets 4,128.3 3,762.2
Funds held for clients 22,394.1 17,897.5
----------- -----------
Total assets $32,643.2 $27,615.4
=========== ===========
Liabilities and Stockholders' Equity
------------------------------------
Securities clearing payables $761.5 $745.2
Other current liabilities 1,941.3 1,896.5
Liabilities of discontinued operations 176.6 215.9
----------- -----------
Total current liabilities 2,879.4 2,857.6
Long-term debt 74.3 75.7
Other non-current liabilities 1,029.9 1,039.0
Client funds obligations 22,615.8 17,859.2
----------- -----------
Total liabilities 26,599.4 21,831.5
Total stockholders' equity 6,043.8 5,783.9
----------- -----------
Total liabilities and stockholders' equity $32,643.2 $27,615.4
=========== ===========
This release and other written or oral statements made from time to time by ADP may contain "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 be" 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, retaining and selling additional services to clients; the pricing of products and services; changes in laws regulating reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. payroll taxes, professional employer organizations 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. , employee benefits and registered clearing agencies and broker-dealers; overall market and economic conditions, including interest rate and foreign currency trends; competitive conditions; 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 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. |
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