Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — Q2 2017 Earnings Presentation
12 slides from Automatic Data Processing's earnings presentation, Feb 1, 2017
Slide 1: 2Q Fiscal 2017 ADP Earnings Call & Webcast
2Q Fiscal 2017 ADP Earnings Call & Webcast February 1, 2017
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 • Solid revenue growth and strong margin expansion during the quarter • Retention up 10 basis points on continued improving service metrics • Slowing of new business bookings due to market uncertainty and significant fiscal 2016 ACA-related tailwinds • Acquired The Marcus Buckingha
Slide 4: 2Q Fiscal 2017 Financial Highlights
2Q Fiscal 2017 Financial Highlights Adjusted EBIT Margin from Continuing Adjusted Diluted EPS from Continuing Total Revenues (unaudited) Operations (unaudited) (a) (b) Operations (unaudited) (a) 19.8% $0.87 $3.0B +180 bps 20% Reported $2.8B 18.0% $0.72 6% Reported 19% Constant 7% Constant dollar (c)
Slide 5: 2Q Fiscal 2017 New Business Bookings and Segment Results
2Q Fiscal 2017 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • 5% compared with 2Q FY16 • Revenues h 4% • Revenues h 12% representing annualized recurring • Client revenue retention • Average worksite employees paid revenues anticipated fr
Slide 6: Fiscal 2017 Outlook
Fiscal 2017 Outlook Revenues % Margin Expansion Adjusted Diluted EPS (a) (b) h ~6% Reported* Adjusted EBIT Margin (a) h 11% - 13% ES Revenue h 3% - 4% h ~50 basis points PEO Revenue h ~13% ES Margin h 25 - 50 basis points PEO Margin h At least 100 basis points *includes a one percentage poin
Slide 7: Appendix
Appendix
Slide 8: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy FY17 Forecast • Average Client Funds Balances h ~3% from Average Average Yield Client Funds Balance Interest $22.4 billion in FY16 Client Short ~$4.4B ~0.5% ~$20M • Yield on the Client Funds Portfolio flat compared Client Extended 9.5 – 9.6B 1.6% –
Slide 9: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change 2Q FY17 2Q FY16 As Reported Constant Dollar Net earnings from continuing operations $510.9 $341.4 50% 49% Provision for income taxes 275.3 166.5 All other interest expense 14.9 15.1 All other interest income
Slide 10: Fiscal 2017 Outlook - GAAP Reconciliations
Fiscal 2017 Outlook - GAAP Reconciliations (Continuing Operations, $ in millions) Twelve Months Ended Fiscal 2017 June 30, 2016 Forecast Earnings from continuing operations before income taxes margin (GAAP) $2,234.7 19.2% ~+140bps All other interest expense 47.9 +40bps +5bps (a) All other interest i
Slide 11: Fiscal 2017 Outlook - GAAP Reconciliations
Fiscal 2017 Outlook - GAAP Reconciliations (Continuing Operations) Twelve Months Ended Fiscal 2017 June 30, 2016 Forecast Diluted EPS from continuing operations (GAAP) $3.25 12% 15% - 17% Gain on sale of AMD – 1Q F16 (0.05) (1%) +1% (a) Gain on sale of building – 2Q F16 (0.02) (1%) +1% (b) Workforce
Slide 12: ADP Guidance History
ADP Guidance History (a) (c) (a) (d) 2/1/17 Forecast 11/2/16 Forecast 7/28/16 Forecast (d) Total ADP Revenues h ~6% Reported h 7% - 8% Reported h 7% - 9% Reported (b) Adj. EBIT Margin h ~50 bps h ~50 bps h 25 - 50 bps (b) Adj. Effective Tax Rate Decrease to 32.4% Decrease to 32.7% Remain flat at
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