Ceridian Corporation Reports Solid First Quarter Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--April 17, 2003 Ceridian Ceridian Corporation NYSE: CEN is an information services company in the human resources, transportation and retail markets. It is a publicly traded company on the New York Stock Exchange. The current Chairman of the Board is L. White Matthews, III. Corporation (NYSE NYSE See: New York Stock Exchange :CEN CEN - Conseil Européen pour la Normalisation. A body coordinating standardisation activities in the EEC and EFTA countries. ): Investors are invited to listen to a teleconference discussing the matters addressed in this press release, live via the Internet at 10:00 a.m. (EDT) on Thursday, April 17, 2003. The webcast can be accessed through the Investor Relations section of Ceridian's website at www.ceridian.com or directly at http://www.ceridian.com/corp/investor_relations/1,1320,407,00.html A replay of the call will also be available at the same address beginning at noon (EDT) on April 17, 2003. First Quarter 2003 Highlights: -- Human Resource Solutions posts third consecutive quarter of top-line growth. Revenue of $235.6 million meets expectations. Customer retention ahead of plan. -- Comdata revenue of $79.0 million exceeds expectations on strong transactions in transportation and retail, and higher fuel prices. Local fueling, eCash, and BusinessLink continue to gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. . -- 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. of $.18 meets expectations. Ceridian Corporation (NYSE:CEN) today reported first quarter 2003 earnings. First quarter 2003 net earnings were $26.7 million, or $.18 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of common stock, on revenue of $314.6 million. Supplementary schedules containing comparative 2002 quarterly results, adjusted for non-recurring items, are available on Ceridian Corporation's website at www.ceridian.com. "I am very pleased with Ceridian's operating results for the first quarter of 2003 and believe we are off to a good start for the year," said Ronald L. Turner Ronald L. Turner was the Chairman and chief executive officer of Ceridian Corporation. Turner joined Ceridian in 1993 as President of Computing Devices International. He was appointed Executive Vice President of Operations for Ceridian Corporation in 1997 and President and Chief , chairman, president and chief executive officer of Ceridian. "The Human Resource Solutions (HRS hrs abbr (= hours) → h hrs abbr (= hours) → Std. ) business again met revenue growth expectations despite significant economic uncertainty and continuing deferrals of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. decisions. I am particularly encouraged that customer retention is ahead of plan, and that our win rates on new business remain high. Even though order levels during the quarter were down slightly compared to a very strong first quarter last year, strong customer signings so far in April and a robust sales pipeline give us confidence that we can post double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. order increases for the remainder of the year. "Comdata's performance during the quarter exceeded our expectations, despite the on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" challenges in both the transportation and retail markets. Revenue during the quarter was greater than our expected range with high transaction volumes in both transportation and Stored Value Systems (SVS SVS - OS/VS2 ). Comdata's emerging businesses in local fleet services Fleet is a motorway service station on the M3 near Basingstoke. It is owned by Welcome Break. It was originally built in a Scandinavian style and in 1992 won "Loo of the Year". and payroll cards gained traction during the quarter and contributed meaningfully to growth. SVS' solid performance in gift card sales and transactions is expected to continue through the balance of the year. "Company-wide, we are aggressively controlling expenses while continuing to invest in product and service enhancements." Guidance for 2003 Unchanged Ceridian's outlook for 2003 revenue and earnings per share remains unchanged. For the second quarter, the Company expects earnings per share to be $.17 to $.18, HRS revenue to be between $220 million and $227 million, and Comdata revenue to be between $78 million and $80 million. For the third quarter, earnings per share are expected to be between $.19 and $.21, HRS revenue to be between $225 million and $230 million, and Comdata revenue to be between $82 million and $85 million. Ceridian Corporation (www.ceridian.com) is an information services See Information Systems. company serving businesses and employees 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. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Europe. Ceridian is one of the top human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. outsourcing companies List of Outsourcing Firms<ref name="who" /> Revenue (USD) Logo Company Headquarters Country of Largest Employment Service $3300 million in each of its markets, and offers a broad range of human resource services, including payroll, benefits administration, tax compliance, HR information systems and employee advisory programs. Through its Comdata subsidiary, Ceridian is a major payment processor and issuer of credit cards, debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. and stored value cards, primarily for the trucking and retail industries in the United States. This press 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. 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. The statements regarding Ceridian Corporation contained in this release that are not historical in nature, particularly those that utilize terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes" or "plans," or comparable terminology, are forward-looking statements based on current expectations and assumptions, and entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors known to Ceridian that could cause such material differences are identified and discussed from time to time in Ceridian's filings with the Securities and Exchange Commission, including those factors which are discussed in Ceridian's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , for the fiscal year ended December 31, 2002, which factors are also incorporated herein by reference. Ceridian undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any future disclosure Ceridian makes on related subjects in future reports to the SEC.
Schedule A
CONSOLIDATED STATEMENTS OF OPERATIONS Ceridian Corporation
(Dollars in millions, except per share data) and Subsidiaries
(Unaudited)
For Periods Ended March 31,
Three Months
2003 2002
Revenue $ 314.6 $ 301.8
Costs and Expenses
Cost of revenue 148.4 143.3
Selling, general and
administrative 108.2 102.8
Research and development 16.3 15.3
Other expense (income) (0.4) 9.8
Total costs and expenses 272.5 271.2
Earnings before interest
and taxes 42.1 30.6
Interest income 0.5 0.3
Interest expense (1.2) (1.9)
Earnings before
income taxes 41.4 29.0
Income tax provision 14.7 10.4
Net earnings $ 26.7 $ 18.6
Earnings per share
Basic $ 0.18 $ 0.13
Diluted $ 0.18 $ 0.12
Shares used in calculations
(in thousands)
Weighted average
shares (basic) 148,451 146,875
Dilutive securities 434 4,057
Weighted average
shares (diluted) 148,885 150,932
Schedule B
CONDENSED CONSOLIDATED BALANCE SHEETS Ceridian Corporation
(Unaudited) and Subsidiaries
(Dollars in millions)
March 31, December 31,
2003 2002
Cash and equivalents $ 108.8 $ 134.3
Trade receivables 445.4 393.1
Other receivables 29.1 27.6
Other assets 1,464.4 1,462.5
Total assets before customer funds 2,047.7 2,017.5
Customer funds 2,906.2 2,440.9
Total assets $ 4,953.9 $ 4,458.4
Debt $ 192.2 $ 193.5
Drafts and settlements payable 144.7 120.8
Other liabilities 559.7 576.4
Total liabilities before
customer obligations 896.6 890.7
Customer obligations 2,906.2 2,440.9
Total liabilities 3,802.8 3,331.6
Stockholders' equity 1,151.1 1,126.8
Total liabilities and
stockholders' equity $ 4,953.9 $ 4,458.4
Schedule C
Ceridian Corporation and Subsidiaries
Revenue Comparisons
($M)
First Quarter
2003 2002
HRS $ 235.6 $ 226.7
Comdata 79.0 75.1
Total $ 314.6 $ 301.8
Ceridian Corporation and Subsidiaries
Earnings Before Interest and Tax Comparisons
($M)
First Quarter
2003 2002
HRS $ 20.1 $ 7.1
Comdata 22.0 19.4
Other - 4.1
Total $ 42.1 $ 30.6
Ceridian Corporation and Subsidiaries
Earnings Before Interest and Tax Comparisons
Excluding Unusual Items
($M)
First Quarter
2003 2002
HRS $ 20.1 $ 19.5
Comdata 22.0 20.9
Total $ 42.1 $ 40.4
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