ADP to Write Off Remaining Bridge Investment.Business Editors ROSELAND, NJ--(BUSINESS WIRE)--Feb. 13, 2001 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. ) will write off the remaining book value of its investment in Bridge Information Systems, Inc. Arthur F. Weinbach, chairman and chief executive officer, announced today. This write-off will result in a $45 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. ($27 million after tax) in the quarter ended March 31, 2001. In fiscal 1999, ADP divested its Brokerage front-office business to Bridge and, as part of the proceeds, received $90 million of Bridge convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . An initial write-down of $45 million was recorded in the quarter ended December 31, 2000. Recent developments have made it clear the investment has no remaining value. Commenting on the write-off, Mr. Weinbach said, "We are very disappointed that conditions at Bridge have caused us to write off our investment. The only good news is that we have no remaining investment in them. This brings to a close the fiscal 1999 disposition of our Brokerage front-office business. This is a non-cash write-off and there is no impact to our current business. "With the exception of these Bridge charges, we remain comfortable with our previous forecast of 16 to 18% earnings per share growth for our full fiscal year ended June 30, 2001," Mr. Weinbach concluded. ADP, with over $6 billion in revenues and 500,000 clients, is one of the largest independent computing 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 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 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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