Slide 1: Second Quarter Highlights and Financial Results Fiscal 2021
Second Quarter Highlights and Financial Results Fiscal 2021
Slide 2: Forward Looking Statements
Forward Looking Statements You should be aware that certain written and oral statements made by management may constitute “forward-looking statements” within the meaning of the safe-harbor provisions of the United States (“U.S.”) Private Securities Litigation Reform Act of 1995. Forward-looking stat
Slide 3: Paychex Overview
Paychex Overview • Integrated, cloud-based HCM platform A leading provider of integrated • Leading-edge technology human capital management solutions coupled with flexible (“HCM”) solutions for human service options resources (“HR”), payroll, benefits, and insurance solutions for small- • Leader in
Slide 4: Second Quarter Highlights
Second Quarter Highlights 4
Slide 5: Second Quarter Financial Highlights
Second Quarter Financial Highlights Service Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 0% 4% 4% $355M $0.73 $971M $969M $342M $0.70 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 (1) Adjusted Operating Income and Adjusted Diluted Earnings per Share (“EPS”) are not U.S. generally
Slide 6: Second Quarter Service Revenue
Second Quarter Service Revenue (In Millions) Key Drivers Management Solutions • Continued strong retention and stability of client base $971 $969 • Higher revenue per check $840 • Lower employee counts throughout our HCM solutions suite due to COVID-19 +6% $727 1% $733 $685 PEO(1) & Insurance Soluti
Slide 7: Second Quarter Business Highlights
Second Quarter Business Highlights • Client base increased with both sales growth and strong retention o Strong demand and growth in HR Solutions and momentum in small market sales, especially virtual and e-commerce o Continued record client retention and client satisfaction scores • Invested in sal
Slide 8: Recent Product & Technology Launches
Recent Product & Technology Launches Designed to simplify common HR and payroll challenges Voice Command Device Integration Workers can now access their HR info easily without logging in from a phone or desktop PC, by using an Apple Watch or Google Assistant. PEO Protection Plus Package Reduces risk
Slide 9: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs Artificial Intelligence Data Analytics Expanded (including Paychex Flex Integrations (APIs) Intelligence Engine) Wearable Voice Personalization Solutions Recognition 9
Slide 10: Sustained Financial Performance
Sustained Financial Performance (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $3,954 $3,692 $3.00 $3,314 $2.84 $991 $3,102 $814 $2.55 $2,906 $556 $422 $2.23 $379 $2.03 $2,758 $2,878 $2,963 $2,527 $2,680 FY16 FY17(2) FY18(2) FY19 FY20 FY16 FY17(2) FY18(2),(3) F
Slide 11: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows ($ in Millions) November 30, 2020 May 31, 2020 Cash, Restricted Cash, & Total Corporate Investments $ 963.4 $ 1,013.7 • Strong liquidity position with no net debt Total Debt, Net of Debt Issuance Costs(1) $ 803.9 $ 801.9 • $800M of private placement, Return on Equity 38
Slide 12: Fiscal 2021 Outlook
Fiscal 2021 Outlook
Slide 13: Fiscal Year 2021 Outlook
Fiscal Year 2021 Outlook(1) Previous Guidance Revised Guidance Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue (3%) - (1%) (1%) - 1% PEO & Insurance Solutions Revenue (5%) - (2%) (5%) - (2%) Total Revenue (4%) - (2%) (3%) - 0% Adjusted Diluted EPS(2) (8%) - (6%) (4%) - (1%)
Slide 14: Financial Results
Financial Results 14
Slide 15: Financial Results
Financial Results For the Three and Six Months ended November 30, 2020 Three Months Ended % Six Months Ended % (In millions, except per share amounts) November 30, 2020 Change November 30, 2020 Change Management Solutions $ 732.8 1% $ 1,420.2 (2%) PEO and Insurance Solutions 236.1 (3%) 466.0 (5%) To
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Six Months ended November 30, 2020 (In millions, except per share amounts) Three Months Ended Six Months Ended November 30, % November 30, % (1) (1) 2020 2019 Change 2020 2019 Change Operating Income $ 354.3 $ 341.7 4% $ 638.3 $ 690.8 (8%) Non-GAAP Adjus
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Six Months Ended November 30, % November 30, % ($ in millions) 2020 2019 Change 2020 2019 Change Average Investment Balances: Funds Held For Clients $ 3,581.4 $ 3,726.3 (4%) $ 3,544.3 $ 3,735.5 (5%) Corporate Cash Equivalents and Investments $ 964.9 $
Slide 18: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 18