Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — Q2 2016 Earnings Presentation
12 slides from Automatic Data Processing's earnings presentation, Feb 3, 2016
Slide 1: 2Q Fiscal 2016 ADP Earnings Call & Webcast
2Q Fiscal 2016 ADP Earnings Call & Webcast February 3, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identifie
Slide 3: CEO's Perspective
CEO’s Perspective • Continued strong demand for ADP’s solutions – now forecasting new business bookings growth of at least 12% • ACA implementations on target • Client retention remains a priority • Continued focus on assisting clients with HCM needs in the face of ever-increasing regulatory complex
Slide 4: 2Q Fiscal 2016 Financial Highlights
2Q Fiscal 2016 Financial Highlights Adjusted EBIT from Continuing Adjusted Diluted EPS from Continuing Total Revenues (unaudited) Operations (unaudited) (a)(b) Operations (unaudited) (a) $2.8 B $0.72 $2.7 B 6% Growth $0.69 $0.5 B $0.5 B 4% Growth 8% Constant 2% Growth 6% Constant Dollar (c) 4% Const
Slide 5: 2Q Fiscal 2016 New Business Bookings and Segment Results
2Q Fiscal 2016 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • h 15% representing • Revenues h 3% Reported • Revenues h 18% annualized recurring h 6% Constant Dollar • Average worksite employees paid revenues anticipated h 14% to 403,000 fro
Slide 6: Fiscal 2016 Outlook
Fiscal 2016 Outlook Revenues % Margin Expansion Adj. Diluted EPS h ~7% Growth ADP Adjusted EBIT Margin h 11% - 13% Growth h ~9% Constant Dollar h ~ 50 basis points h 12% - 14% Constant Dollar ES Revenue h 4% - 5% Reported ES Margin h ~75 basis points h ~7% Constant Dollar PEO Margin h ~50 basi
Slide 7: Appendix
Appendix
Slide 8: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy FY16 Forecast • Average Client Funds Balances h 2% to 4% from $21.8 billion in FY15; includes anticipated Average Average Yield Client Funds Balance Interest negative impact of two percentage points from unfavorable foreign currency translation Cli
Slide 9: 2Q Fiscal 2016 Financial Summary
2Q Fiscal 2016 Financial Summary (Continuing Operations) 2Q FY16, 2Q FY16, 2Q FY16 YTD, 2Q FY16 YTD, Actual As Adjusted(a) Actual As Adjusted(b) Revenues h6% h6% h6% h6% Earnings Before Interest, Taxes (EBIT)(c) h5% h2% h9% h4% EBIT Margin(c) 20 bps 70 bps h50 bps 30 bps Effective Tax Rate 60 bp
Slide 10: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change 2Q FY16 2Q FY15 As Reported Constant Dollar Earnings before Income Taxes $507.9 $498.8 2% 4% Interest Expense 15.1 0.4 Interest Income (3.0) (3.2) Earnings before Taxes, Interest (EBIT) $520.0 $496.0 Gain on
Slide 11: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change 2Q FY16 YTD 2Q FY15 YTD As Reported Constant Dollar Earnings before Income Taxes $1,012.9 $949.2 7% 9% Interest Expense 18.1 0.8 Interest Income (5.0) (5.4) Gain on Sale of Building (13.9) - Gain on Sale of B
Slide 12: ADP Guidance History
ADP Guidance History 2/3/16 Forecast 10/28/15 Forecast 7/30/15 Forecast Total ADP h ~7% Reported h 7% - 8% Reported Revenues h 7% - 9% Reported h ~9% Constant Dollar h 8% - 9% Constant Dollar (a) h ~50 bps Adjusted EBIT Margin h ~50 bps h ~50 bps (Pretax Margin) Effective Tax Rate h Increase to 33.7
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