Ceridian Corporation Reports Solid Third Quarter Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Oct. 15, 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. ): Third Quarter 2003 Highlights: -- Revenue of $309.5 million up 7.3 percent year over year -- Human Resource Solutions posts fifth consecutive quarter of top-line growth with revenue of $224.2 million -- Comdata revenue of $85.3 million exceeds expectations on strong performance in Stored Value Systems -- 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 $.20 within guided range. -- Human Resource Solutions orders remain strong, up nearly 20 percent year over year -- 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 remains strong. Debt balance reduced by $52.3 million to $163.0 million. Ceridian Corporation (NYSE:CEN) today reported third quarter 2003 earnings. Third quarter 2003 net earnings were $30.3 million, or $.20 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 $309.5 million. Supplementary schedules containing comparative 2002 quarterly results are available on Ceridian Corporation's website at www.ceridian.com. "I am extremely pleased with Ceridian's operating results for the third 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. "During the quarter, the Human Resource Solutions (HRS hrs abbr (= hours) → h hrs abbr (= hours) → Std. ) business posted solid top-line growth despite the continuing negative economic impact from low interest rates and weak hiring trends. The U.S. 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. business met our expectations, as new business, higher float balances, better retention, and a more stable pricing environment more than offset the negative impact of the economy. "I am particularly encouraged that order levels remained strong during the quarter, increasing almost 20 percent over the third quarter of last year. We are confident that we can post double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. order growth for both the fourth quarter and the year. "Comdata posted very strong results in the quarter. Revenue was up significantly year over year, mainly on strength in Stored Value Systems. Gift card and transaction revenue both came in above plan, and new customers contributed meaningfully to revenue during the quarter. The transportation market remains challenging, as transactions in the over-the-road market were flat year over year. Revenue in merchant services Merchant services is the name given in the United States to a broad category of financial services intended for use by businesses. In its most specific use, it usually refers to the service that enables a business to accept a transaction payment by use of the customer's credit or and regulatory compliance remained weak, but year over year comparisons have eased somewhat. Results in the local fleet market were encouraging, where transactions were up more than 20 percent over the prior year quarter. "Cash flow from operations remained very strong during the quarter. We have reduced our debt balance by more than $52 million since June, and continued to opportunistically repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. Ceridian shares." Guidance for 2003 For the fourth quarter, the Company expects earnings per share to be $.28 to $.30; HRS revenue to be approximately $255 million; and Comdata revenue to be approximately $88 million. For the full year, earnings per share are expected to be between $.83 and $.85; HRS revenue to be approximately $935 million; and Comdata revenue to be approximately $330 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 Wednesday, October 15, 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 October 15, 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 September 30,
Current Quarter Year to Date
2003 2002 2003 2002
Revenue $ 309.5 $ 288.6 $ 921.9 $ 878.2
Costs and Expenses
Cost of revenue 149.2 141.6 442.6 424.4
Selling, general and
administrative 97.7 87.2 301.6 284.4
Research and development 15.9 15.1 49.0 44.8
Other expense (income) (1.1) 9.7 (1.3) 19.4
Total costs and expenses 261.7 253.6 791.9 773.0
Earnings before
interest and taxes 47.8 35.0 130.0 105.2
Interest income 0.5 0.6 1.5 1.5
Interest expense (1.3) (1.5) (3.7) (5.3)
Earnings before income taxes 47.0 34.1 127.8 101.4
Income tax provision 16.7 12.3 45.4 36.5
Net earnings $ 30.3 $ 21.8 $ 82.4 $ 64.9
Earnings per share
Basic $ 0.20 $ 0.15 $ 0.56 $ 0.44
Diluted $ 0.20 $ 0.15 $ 0.55 $ 0.43
Shares used in calculations
(in thousands)
Weighted average
shares (basic) 148,426 148,526 148,282 147,882
Dilutive securities 3,404 1,407 1,733 3,496
Weighted average
shares (diluted) 151,830 149,933 150,015 151,378
Schedule B
CONDENSED CONSOLIDATED BALANCE SHEETS Ceridian Corporation
(Unaudited) and Subsidiaries
(Dollars in millions)
September 30, December 31,
2003 2002
Cash and equivalents $ 135.1 $ 134.3
Trade receivables 419.2 393.1
Other receivables 34.4 27.5
Other assets 1,466.2 1,462.6
Total assets before customer funds 2,054.9 2,017.5
Customer funds 2,213.1 2,440.9
Total assets $ 4,268.0 $ 4,458.4
Debt $ 163.0 $ 193.5
Drafts and settlements payable 138.1 120.8
Other liabilities 528.7 576.4
Total liabilities before
customer funds obligations 829.8 890.7
Customer funds obligations 2,213.1 2,440.9
Total liabilities 3,042.9 3,331.6
Stockholders' equity 1,225.1 1,126.8
Total liabilities and
stockholders' equity $ 4,268.0 $ 4,458.4
Schedule C
Ceridian Corporation and Subsidiaries
Revenue Comparisons
($M)
Third Quarter Nine Months YTD
2003 2002 2003 2002
HRS $ 224.2 $ 213.2 $ 680.2 $ 648.2
Comdata 85.3 75.4 241.7 230.0
Total $ 309.5 $ 288.6 $ 921.9 $ 878.2
Ceridian Corporation and Subsidiaries
Earnings Before Interest and Tax Comparisons
($M)
Third Quarter Nine Months YTD
2003 2002 2003 2002
HRS $ 18.8 $ 16.0 $ 53.6 $ 37.0
Comdata 29.0 19.0 76.4 64.1
Other - - - 4.1
Total $ 47.8 $ 35.0 $ 130.0 $ 105.2
Ceridian Corporation and Subsidiaries
Earnings Before Interest and Tax Comparisons
Supplementary Non-GAAP Information
($M)
Third Quarter Nine Months YTD
2003 2002 2003 2002
HRS $ 18.8 $ 16.0 $ 53.6 $ 49.4
Comdata 29.0 28.8 76.4 75.4
Total $ 47.8 $ 44.8 $ 130.0 $ 124.8
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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