Ceridian Corporation Reports Solid Second Quarter Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--July 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. ): Second Quarter 2003 Highlights: -- Human Resource Solutions posts fourth consecutive quarter of top-line growth. Revenue of $220.4 million meets guided range. Orders increase by mid-teens over prior year period on a percentage basis. Customer retention ahead of plan. -- Comdata posts revenue of $77.4 million. Strength in retail transactions, local fueling, eCash and BusinessLink tempered by economic softness in transportation. -- 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 $.17 meets expectations. -- Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses strong at $62.8 million. Ceridian Corporation (NYSE:CEN) today reported second quarter 2003 earnings. Second quarter 2003 net earnings were $25.4 million, or $.17 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 $297.8 million. Supplementary schedules containing comparative 2002 quarterly results are available on Ceridian Corporation's website at www.ceridian.com. "I am pleased with Ceridian's operating results for the second quarter of 2003," 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 the low interest rate environment and moderating weakness in customer employment levels. I am particularly encouraged that customer retention remains ahead of plan, and that order levels during the quarter increased in the mid-teens on a percentage basis compared to last year's second quarter. We remain confident that we can post double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. order growth for the year. "Comdata's bottom-line performance during the quarter was solid, especially given the on-going challenges in the transportation market. Transportation revenue during the quarter was slightly less than anticipated, primarily due to softness in the transportation industry. Transaction levels in the over-the-road trucking market slowed considerably during the first two months of the quarter before rebounding in June. Stored Value Systems (SVS SVS - OS/VS2 ) enjoyed strong performances in both gift card sales and transactions, and we expect SVS to continue its solid performance through the balance of the year. Comdata's emerging businesses again gained 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. during the quarter and contributed meaningfully to growth." Guidance for 2003 For the third quarter, the Company expects earnings per share to be $.19 to $.21, HRS revenue to be between $225 million and $230 million, and Comdata revenue to be between $82 million and $85 million. For the full year, earnings per share are expected to be between $.83 and $.87, HRS revenue to be between $935 million and $950 million, and Comdata revenue to be between $325 million and $335 million. Earnings Teleconference Webcast Investors are invited to listen to a teleconference discussing the matters addressed in this press release, live via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at 10:00 a.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 ) on Thursday, July 17, 2003. The webcast can be accessed through the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Ceridian's website at www.ceridian.com. A replay of the call will also be available at the same address beginning at l:00 p.m. (EDT) on July 17, 2003. 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 and Europe. Ceridian is one of the top human resource 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. We report our financial results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). However, we believe that certain non-GAAP financial measures may provide users of this financial information with additional meaningful comparisons between current results and prior reported results. Certain of the information set forth herein, on our website and presented by us from time to time, may constitute non-GAAP financial measures within the meaning of Regulation G and Item 10 of Regulation S-K adopted by the Securities and Exchange Commission. We have presented in supplementary schedules referenced herein a reconciliation of these measures to the most directly comparable GAAP financial measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for comparable amounts determined in accordance with GAAP 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 June 30,
Current Quarter Year to Date
2003 2002 2003 2002
Revenue $ 297.8 $ 287.8 $ 612.4 $ 589.6
Costs and Expenses
Cost of revenue 145.0 139.5 293.4 282.8
Selling, general and
administrative 95.7 94.4 203.9 197.2
Research and development 16.8 14.4 33.1 29.7
Other expense (income) 0.2 (0.1) (0.2) 9.7
Total costs and expenses 257.7 248.2 530.2 519.4
Earnings before
interest and taxes 40.1 39.6 82.2 70.2
Interest income 0.5 0.6 1.0 0.9
Interest expense (1.2) (1.9) (2.4) (3.8)
Earnings before income taxes 39.4 38.3 80.8 67.3
Income tax provision 14.0 13.8 28.7 24.2
Net earnings $ 25.4 $ 24.5 $ 52.1 $ 43.1
Earnings per share
Basic $ 0.17 $ 0.17 $ 0.35 $ 0.29
Diluted $ 0.17 $ 0.16 $ 0.35 $ 0.28
Shares used in calculations
(in thousands)
Weighted average
shares (basic) 147,970 148,246 148,210 147,560
Dilutive securities 1,367 5,467 807 4,697
Weighted average
shares (diluted) 149,337 153,713 149,017 152,257
Schedule B
CONDENSED CONSOLIDATED BALANCE SHEETS Ceridian Corporation
(Unaudited) and Subsidiaries
(Dollars in millions)
June 30, December 31,
2003 2002
Cash and equivalents $ 160.6 $ 134.3
Trade receivables 434.0 393.1
Other receivables 29.5 27.5
Other assets 1,487.5 1,462.6
Total assets before customer funds 2,111.6 2,017.5
Customer funds 2,363.9 2,440.9
Total assets $ 4,475.5 $ 4,458.4
Debt $ 215.3 $ 193.5
Drafts and settlements payable 158.3 120.8
Other liabilities 550.3 576.4
Total liabilities before
customer funds obligations 923.9 890.7
Customer funds obligations 2,363.9 2,440.9
Total liabilities 3,287.8 3,331.6
Stockholders' equity 1,187.7 1,126.8
Total liabilities and
stockholders' equity $ 4,475.5 $ 4,458.4
Schedule C
Ceridian Corporation and Subsidiaries
Revenue Comparisons
($M)
Second Quarter Six Months YTD
2003 2002 2003 2002
HRS $ 220.4 $ 208.3 $ 456.0 $ 435.0
Comdata 77.4 79.5 156.4 154.6
Total $ 297.8 $ 287.8 $ 612.4 $ 589.6
Ceridian Corporation and Subsidiaries
Earnings Before Interest and Tax Comparisons
($M)
Second Quarter Six Months YTD
2003 2002 2003 2002
HRS $ 14.7 $ 13.9 $ 34.8 $ 21.0
Comdata 25.4 25.7 47.4 45.1
Other - - - 4.1
Total $ 40.1 $ 39.6 $ 82.2 $ 70.2
Ceridian Corporation and Subsidiaries
Earnings Before Interest and Tax Comparisons
Supplementary Non-GAAP Information
($M)
Second Quarter Six Months YTD
2003 2002 2003 2002
HRS $ 14.7 $ 13.9 $ 34.8 $ 33.4
Comdata 25.4 25.7 47.4 46.6
Total $ 40.1 $ 39.6 $ 82.2 $ 80.0
A reconciliation of this supplementary non-GAAP information to the
most directly comparable GAAP information can be found in the
supplementary schedules previously referenced in this press release.
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