ADP Reports Second Quarter Fiscal 2013 Results; Confirms Fiscal 2013 Revenue and EPS Guidance

Printer-friendly versionPDF version

Revenues Rise 7%, 6% Organic EPS from Continuing Operations Declined 5%, Increased 7% Excluding Prior Year Gain

Roseland, New Jersey - February 5, 2013 - ADP® (Nasdaq: ADP) reported revenue growth of 7%, 6% organic, to $2.7 billion for the second fiscal quarter ended December 31, 2012, Carlos Rodriguez, president and chief executive officer, announced today. The second quarter of fiscal 2012 included a pretax gain of $66 million, $41 million after tax, on a sale of assets. As reported, including the gain, pretax earnings from continuing operations decreased 8% and pretax margin declined 320 basis points. Net earnings from continuing operations decreased 6% and diluted earnings per share from continuing operations of $0.72 decreased 5% from $0.76 a year ago on fewer shares outstanding.

Excluding the prior year gain, pretax earnings from continuing operations increased 4%, pretax margin declined 60 basis points, net earnings from continuing operations increased 6%, and diluted earnings per share from continuing operations of $0.72 increased 7% from $0.67 a year ago. Fiscal year-to-date through February 1, 2013 ADP acquired 5.9 million shares of its stock for treasury at a cost of $341 million. Cash and marketable securities were $1.5 billion at December 31, 2012.

Second Quarter Discussion

Commenting on the results, Mr. Rodriguez said, "I am pleased with ADP's second quarter results. Our business segments performed well driving solid revenue growth and pretax margin expansion. Combined worldwide new business bookings for Employer Services and PEO Services grew 5%. With 9% growth in new business bookings through the first half of the fiscal year, we are on track to achieve our full year outlook of 8% to 10% growth.

"Previously communicated challenges and tough comparisons we faced heading into the quarter affected the company's results, including:

News Source : ADP Reports Second Quarter Fiscal 2013 Results; Confirms Fiscal 2013 Revenue and EPS Guidance