Slide 1: First Quarter Highlights and Financial Results Fiscal 2021
First 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: First Quarter Highlights
First Quarter Highlights 4
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights Total Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 6% 10% 11% $992M $932M $349M $0.71 $315M $0.63 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 (1) Adjusted Operating Income and Adjusted Diluted Earnings per Share (“EPS”) are not U.S. generally a
Slide 6: First Quarter Service Revenue
First Quarter Service Revenue (In Millions) Key Drivers PEO(1) & Insurance Solutions • Decline in PEO worksite employees $971 and Health and Benefits applicants $917 within existing base due to COVID-19 $846 +56% $247 -7% • Lower workers’ compensation $230 premiums due to lower wages and $158 less h
Slide 7: First Quarter Business Highlights
First Quarter Business Highlights • Continued to provide critical COVID-19 information and tools to our clients o Our COVID-19 Help Center website has seen almost 300K unique visits since April o COVID-related webinars are averaging 2,100 attendees with some webinars attracting more than 10,000 atte
Slide 8: Recent/Upcoming Product Launches
Recent/Upcoming Product Launches Designed to simplify common HR and payroll challenges Real Time Payments Paychex customers can now pay their employees immediately, helping employers attract talent and allowing employees access to earned wages in a matter of seconds. Over 30K payments made and $44M
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) August 31, 2020 May 31, 2020 Cash, Restricted Cash, & Total Corporate Investments • Strong liquidity position with $ 952.1 $ 1,013.7 minimal or no net debt Total Debt, Net of Debt Issuance Costs(1) $ 803.0 $ 801.9 • $800M of private placement, fixed-rate
Slide 12: Fiscal 2021 Outlook
Fiscal 2021 Outlook
Slide 13: Fiscal Year 2021 Outlook
Fiscal Year 2021 Outlook(1) Original Guidance Revised Guidance Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue (4%) - (1%) (3%) - (1%) PEO & Insurance Solutions Revenue (7%) - (2%) (5%) - (2%) Total Revenue (5%) - (2%) (4%) - (2%) (2) Adjusted Diluted EPS (10%) - (6%) (8%) -
Slide 14: Financial Results
Financial Results 14
Slide 15: Financial Results: Three Months ended August 31, 2020
Financial Results For the Three Months ended August 31, 2020 Three Months Ended % (In millions, except per share amounts) August 31, 2020 Change Management Solutions $ 687.4 (5%) PEO and Insurance Solutions 229.9 (7%) Total Service Revenue 917.3 (6%) Interest on Funds Held for Clients 14.9 (28%) Tot
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2020 (In millions, except per share amounts) Three Months Ended August 31, August 31, % 2020(1) 2019 Change Operating Income $ 284.0 $ 349.1 (19%) Non-GAAP Adjustments: Cost-saving Initiatives(2) 31.2 - Total Non-GAAP Adjustments 31.2
Slide 17: Investment Portfolio Results
Investment Portfolio Results ($ in Millions) Three Months Ended August 31, August 31, % • The Federal Funds rate decreased ($ in millions) 2020 2019 Change 225 basis points during fiscal 2020 Average Investment Balances: Funds Held For Clients $ 3,507.2 $ 3,744.6 (6%) • Declining market interest rat
Slide 18: PAYCHEX: The Power of Simplicity
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 18