ADP reports record second fiscal quarter; EPS increases by 16%.ROSELAND, N.J.--(BUSINESS WIRE)--Jan. 16, 1997--Automatic Data Processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a Inc. achieved record revenue and earnings in its second quarter of fiscal 1997, Arthur F. Weinbach, president and chief executive officer, announced today. This represents ADP's 142nd consecutive quarter of record highs in both revenue and earnings per share. Revenue increased 21% from last year to $996 million in the quarter ended December 31, 1996. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings increased 20% and net earnings increased 17% on a higher effective tax rate. Earnings per share increased 16% to $.44 from $.38 last year. Commenting on the second quarter, Mr. Weinbach said, "Revenue growth in each of our core businesses, Employer, Brokerage, Dealer and Claims Services, was 24%, 18%, 23% and 24%, respectively. Brokerage growth was fueled by strong Wall Street 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. . As expected, overall corporate margins were slightly lower than in the comparable prior year quarter because of the impact of prior year acquisitions. "As previously indicated, we expect revenue growth will slow in the second half of the year because we will be past the anniversary date of the GSI GSI - Gensym Standard Interface acquisition. However, we expect consolidated margins to improve in the second half of fiscal 1997. For the full fiscal year we continue to expect double-digit revenue growth and about 15% growth in earnings per share. "We are pleased with our year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results, and with our outlook. There are excellent opportunities for 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 in each of our core business units. In addition, in the first half of the year we made acquisitions and investments in the benefit administration 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. area that look quite promising." Below is a summary of unaudited comparative results. -0-
Three Months Ended Six Months Ended
December 31, December 31,
1996 1995 1996 1995
(000's omitted except per share data)
Revenue (R) $ 995,575 $ 819,723 $1,906,305 $ 1,566,817
Earnings before
income taxes $ 180,710 $ 150,600 $ 312,810 $ 261,400
Provision for income
taxes $ 53,130 $ 41,700 $ 91,950 $ 70,600
Net earnings (R) $ 127,580 $ 108,900 $ 220,860 $ 190,800
Earnings per
share (R) $ .44 $ .38 $ .76 $ .66
Average shares
outstanding 290,502 288,001 289,493 287,866
(R) Record high
-0-
ADP, with over $3.5 billion in revenue and more than 375,000
clients, is one of the largest independent computing services firms
in the world.
CONTACT: Arthur Schmidt & Associates Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212/953-5555 |
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