Slide 1: Impacts of ASC 606 and Other Items
Exhibit 99.1 PAYCHEX Payroll HR Retirement Insurance Impacts of ASC 606 and Other Items Fiscal 2018 and Fiscal 2017 Updated as of June 28, 2018 © 2018, PAYCHEX ,Inc. All rights reserved. 1
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: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S., we consider and have included certain non-GAAP financial measures including adjusted net income and adjusted diluted earnings per sha
Slide 4: Agenda
Agenda .ASC Topic 606, Revenue from Contracts with Customers,(“ASC 606”) -Adoption for Paychex .Financial impact of implementation of ASC 606 and certain Non- GAAP Adjustments .Restated GAAP and Non-GAAP Income Statements .Fiscal 2019 annual guidance © 2018, PAYCHEX ,Inc. All rights reserved. 4
Slide 5: ASC Adoption for Paychex
ASC 606 Adoption for Paychex Full Retrospective Adoption Effective for Fiscal Year ending May 31, 2019 (“fiscal 2019”) Recast Fiscal 2018 and Fiscal 2017 Income Statement Cumulative Adjustment recognized to Retained Earnings as of June 1, 2016 Financial Impacts Insignificant impacts to annual revenu
Slide 6: Impact to Service Revenue
Impact to Service Revenue ASC 606 implementation –no significant impact on an annual basis, but does impact quarterly gaiting ($ in Millions) Fiscal 2018 FY 17 Q1 Q2 Q3 Q4 FY 18 As Reported Payroll Service Revenue $ 1,779.3 $ 457.8 $ 444.8 $ 455.0 $ 452.4 $ 1,810.0 Human Resource Services revenue 1,
Slide 7: Adjusted Net Income
Adjusted Net Income ASC 606 implementation impact does not significantly impact year-over-year growth once adjusted for one-time impacts of Tax Reform ($ in Millions) Fiscal 2018 FY18/FY17 FY 17 Q1 Q2 Q3 Q4 FY 18 Growth Net Income, As Reported $ 817.3 $ 227.8 $ 217.0 $ 260.4 $ 228.5 $ 933.7 14.2% GA
Slide 8: Adjusted Diluted EPS
Adjusted Diluted EPS ASC 606 implementation, excluding one-time discrete tax impact, increases annual adjusted diluted EPS (non-GAAP) by slightly less than $0.01 for fiscal 2018 Fiscal 2018 (2) FY18/FY17 FY 17 (2) Q1 Q2 Q3 Q4 FY 18 Growth Diluted EPS, As Reported $ 2.25 $ 0.63 $ 0.60 $ 0.72 $ 0.63 $
Slide 9: FY18 & FY17 Annual Income Statement As Reported and As Adjusted
FY18 & FY17 Annual Income Statement As Reported and As Adjusted ($ Millions, except per share amounts) FY18 FY17 FY18 Year-Over-Year-Growth As Reported (GAAP) ASC 606 Adj Restated (GAAP) Non- GAAP Adj Adjusted (Non-GAAP) As Reported (GAAP) ASC 606 Adj Restated (GAAP) Non- GAAP Adj Adjusted (Non-GAAP
Slide 10: FY18 Quarterly Income Statement As Reported and As Adjusted
FY18 Quarterly Income Statement As Reported and As Adjusted Q1FY18 Q2FY2018 Q3FY2018 Q4FY2018 ($ Millions, except per share amounts) As Reported (GAAP) ASC 606 Adj Restated (GAAP) Non- GAAP Adj Adjusted (Non-GAAP) As Reported (GAAP) ASC 606 Adj Restated (GAAP) Non- GAAP Adj Adjusted (Non-GAAP) As Re
Slide 11: Fiscal Year 2019 Full Year Outlook
Fiscal Year 2019 Full Year Outlook Fiscal 2019 outlook is based on our financial results with the implementation of ASC 606, “Revenue from Contracts with Customers,” on a full retrospective basis. Year-over-Year Growth Payroll Service Revenue 2% -3% HRS Revenue 10% -11% Interest on funds held for cl
Slide 12: Paychex
PAYCHEX Payroll HR Retirement Insurance © 2018, PAYCHEX, Inc. All rights reserved 12