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PAYCHEX, INC. REPORTS RECORD FIRST QUARTER RESULTS

 ROCHESTER, N.Y., Sept. 15 /PRNewswire/ -- Paychex, Inc. (NASDAQ: PAYX) today reported record quarterly net income of $6,919,000 or $.23 per share for the first quarter ended Aug. 31, 1993, up 36 percent over net income of $5,099,000 or $.17 per share in the previous year's first quarter.
 Revenue for the period rose 18 percent to a record $53,330,000 from $45,277,000 a year earlier.
 Tom Golisano, chairman and chief executive, noted that the positive trends experienced during fiscal 1993 continued in the first quarter this year. "A satisfactory level of net client additions and the continued growth of our Taxpay(R) client base were factors in our excellent first quarter results. In addition, the company adopted Statement of Financial Accounting Standards No. 109 'Accounting for Income Taxes' during the quarter resulting in a reduction in income tax expense of $274,000 and an increase in earnings of almost $.01 per share," Golisano said.
 Golisano added that the number of payroll clients served now total 172,000 and over 37 percent of these are utilizing Taxpay, the tax filing and payment feature.
 Paychex, with payroll service centers in major metropolitan areas throughout the country, is primarily engaged in the preparation of payroll checks, internal accounting records and all Federal, State and local payroll tax returns for businesses with 1 to 200 employees.
 SUMMARY OF RESULTS
 (In Thousands Except Per Share Amounts)
 Three Months Ended Aug. 31
 1993 1992
 REVENUE $53,330 $45,277
 Operating Costs 16,227 13,966
 Selling, General
 & Admin. Expense 28,044 24,354
 Operating Income 9,059 6,957
 Income Before Taxes 9,492 7,233
 Income Taxes 2,573 (B) 2,134
 NET INCOME $ 6,919 $ 5,099
 NET INCOME PER SHARE $ .23 (B) $ .17 (A)
 Average Number of Shares 29,808 29,662 (A)
 (A) -- Adjusted for a three-for-two stock split in August 1993.
 (B) -- Reflects a reduction of $274,000 in income taxes or an additional $.01 per share from adoption of FAS109 "Accounting for Income Taxes."
 CONDENSED BALANCE SHEET
 (In Thousands)
 August 31, 1993
 ASSETS
 Cash & Cash Equivalents $ 9,181
 Investments 35,026
 Trade Accounts Receivable 20,478
 Prepaid Expenses & Other 6,055
 Total Current Assets 70,740
 Net Property & Equipment 42,046
 Other Assets 1,119
 TOTAL ASSETS $113,905
 LIABILITIES & STOCKHOLDERS' EQUITY
 Trade Accounts Payable $ 3,718
 Accrued Compensation and
 Other Expenses 14,892
 Current Part-Long Term Debt 400
 Total Current Liabilities 19,010
 Long Term Debt 1,193
 Unamortized Lease Incentives 1,202
 Deferred Income Taxes 1,460
 TOTAL LIABILITIES 22,865
 STOCKHOLDERS' EQUITY 91,040
 TOTAL LIABILITIES AND
 STOCKHOLDERS EQUITY $113,905
 -0- 9/15/93
 /CONTACT: G. Thomas Clark, chief financial officer, 716-385-6666, or Kelly Brown, 716-383-3153, both of Paychex/
 (PAYX)


CO: Paychex, Inc. ST: New York IN: SU: ERN

KL -- CL008 -- 2091 09/15/93 09:03 EDT
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Publication:PR Newswire
Date:Sep 15, 1993
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