For the Year, Revenues Rise 7%, 6% Organic; EPS from Continuing Operations Unchanged, Up 6% As Adjusted Forecasting Fiscal 2014 Revenue Growth of about 7%; Forecasting Fiscal 2014 EPS Growth of 8% to 10%, Compared with Adjusted $2.89 in Fiscal 2013 ROSELAND, N.J., Aug. 1, 2013 (GLOBE NEWSWIRE) -- ADP ® (Nasdaq:ADP) reported fiscal 2013 results and provided its initial outlook for fiscal 2014, Carlos Rodriguez, president and chief executive officer, announced today.
|Fiscal 2013 Results|
|As Reported||As Adjusted|
|Revenues||7% to $11.31 billion||7% to $11.31 billion|
|Pretax earnings from continuing operations||(1)% to $2.08 billion||4% to $2.13 billion|
|Net earnings from continuing operations||(1)% to $1.36 billion||5% to $1.41 billion|
|Diluted earnings per share from continuing operations||unchanged at $2.80||6% to $2.89 from $2.72|
|Fourth Quarter Fiscal 2013 Results|
|As Reported||As Adjusted|
|Revenues||7% to $2.81 billion||7% to $2.81 billion|
|Pretax earnings from continuing operations||(7)% to $365.1 million||4% to $407.8 million|
|Net earnings from continuing operations||(11)% to $227.0 million||5% to $269.7 million|
|Diluted earnings per share from continuing operations||(10)% to $0.47 from $0.52||6% to $0.55 from $0.52|
- A $43 million pretax, non-cash goodwill impairment charge ($43 million after tax, $0.09 per share) recorded in the fourth quarter of fiscal 2013 related to the 2011 acquisition of ADP AdvancedMD; and
- For the full fiscal year only, a $66 million pretax gain on a sale of assets ($41 million after tax, $0.08 per share) recorded in the second quarter of fiscal 2012.
As anticipated, the following previously communicated items affected the company's results:
- High-margin client interest revenues declined from a year ago due to a lower yield on the client funds portfolio, partially offset by growth in average client funds balances, and negatively impacted fourth quarter and full-year revenue growth 1%. This decline was the primary driver of the impact of the client funds extended investment strategy, which negatively impacted growth in pretax earnings from continuing operations in the fourth quarter and full year 6% and 4%, respectively. Pretax margin was negatively impacted 120 basis points in the fourth quarter and 110 basis points for the full year, more than offsetting the strong pretax margin expansion in the business segments. Additionally, diluted earnings per share from continuing operations was negatively impacted $0.03, or 6% for the quarter, and $0.12, or 4% for the year.
- Foregone revenues and earnings related to the fiscal 2012 second quarter sale of assets and the expiration of certain employment tax credits within our Tax Credit Services business negatively impacted full-year revenue growth 0.5%, pretax earnings from continuing operations growth 2%, pretax margin 20 basis points, and diluted earnings per share $0.04, or just over 1%. There was no impact to fourth quarter results as the sale of assets and the expiration of the tax credits occurred in the second quarter of the prior year.
- Unfavorable foreign exchange rates negatively impacted full-year revenue growth about 0.5% with minimal impact on full-year earnings. There was minimal impact to fourth quarter results from foreign exchange rates.
- Fiscal 2012 acquisitions contributed 1% to full-year revenue growth and negatively impacted pretax margins about 20 basis points with minimal impact on earnings. There was minimal impact to fourth quarter results from fiscal 2012 acquisitions as the acquisitions were all completed prior to the fourth quarter of fiscal 2012.