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ADP Reports Second Quarter Fiscal 2014 Results

ROSELAND, N.J., Feb. 5, 2014 (GLOBE NEWSWIRE) -- ADP ® (Nasdaq:ADP), a leading global provider of Human Capital Management (HCM) solutions, today announced its second quarter fiscal 2014 financial results. Highlights are below.
  • ADP reported growth of 9% in revenues, 8% organic, to $3.0 billion for the second fiscal quarter ended December 31, 2013.
  • Pretax and net earnings from continuing operations increased 6% and 7%, respectively.
  • Diluted earnings per share from continuing operations of $0.78 increased 8% from $0.72 a year ago.
  • ADP acquired 1.4 million shares of its stock for treasury at a cost of $109 million in the quarter.
  • Approximately 360,000 clients now rely on ADP's newest cloud platforms, ADP RUN ® for small businesses, and ADP Workforce Now ® for mid-sized businesses.

"ADP posted good results for the second quarter reflecting the strength of our business model," said Carlos Rodriguez, president and chief executive officer, ADP. "We continue to execute against our Human Capital Management strategy of providing our clients innovative, cloud-based solutions differentiated in the marketplace by our strong history of compliance management, our proven service model, and our deep industry experience."

"ADP's second quarter results were solid," said Jan Siegmund, chief financial officer, ADP. "I am particularly pleased with our revenue growth of 9%. Each of our business segments performed well, driving good revenue growth and pretax margin expansion."

As anticipated, high-margin client interest revenues declined from a year ago and negatively impacted second quarter revenue growth 0.5 percentage points due to a lower yield on the client funds portfolio, partially offset by growth in average client funds balances. This decline in client interest revenues was the primary driver of the lower contribution from the client funds extended investment strategy, which negatively impacted growth in pretax earnings from continuing operations 3% and pretax margin 90 basis points, offsetting the strong pretax margin expansion in the business segments. The lower contribution from the client funds extended investment strategy reduced diluted earnings per share from continuing operations $0.02, or 3% for the quarter.

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