ADP Reports Third Quarter Fiscal 2009 Results; Third Quarter Revenues Decline 2%;
EPS From Continuing Operations Increases 4%; Confirms Fiscal 2009 Revenue and EPS Growth Forecasts
CONTACT:
ADP
Investor Relations
Elena Charles
(973) 974-4077 |
Debbie Morris
(973) 974-7821 |
ROSELAND, New Jersey, -- May 5, 2009 -- Automatic Data Processing, Inc. (Nasdaq:ADP) reported a 2% revenue decline to $2.37 billion for the third fiscal quarter ended March 31, 2009, Gary C. Butler, president and chief executive officer, announced today. Revenue was negatively impacted by the severe economic conditions and over 3 percentage points of unfavorable foreign exchange rates during the quarter. Pretax earnings from continuing operations declined 1% and net earnings from continuing operations were essentially flat. Diluted earnings per share from continuing operations increased 4% to $0.80 from $0.77 a year ago on fewer shares outstanding. Fiscal year-to-date, ADP acquired 13.8 million shares of its stock for treasury at a cost of about $550 million. Cash and marketable securities at March 31, 2009 were $1.47 billion.
Commenting on the results, Mr. Butler said, "ADP's third quarter results were negatively impacted by the recessionary economic environment and unfavorable foreign exchange rates. The selling environment continued to be soft in Employer Services and PEO Services across all market segments. As anticipated, our same-store-sales employment metric was also negative for the quarter which is indicative of the steep rise in U.S. unemployment. Dealer Services' results reflect the continued difficult state of the automotive market. Notwithstanding these challenges, ADP continues to control expenses and appropriately align our expense base with our revenue growth.
Employer Services
"Employer Services' revenues increased 1% in the third quarter compared with the same period last year. As previously disclosed, we anticipated slower revenue growth for Employer Services during the second half of fiscal 2009 due to the negative impact of the weak economy on sales, retention and employment levels. In line with our expectations, revenues in the United States from our payroll and payroll tax filing business declined 3% and beyond payroll revenues grew 6% in the third quarter compared with the same period last year. Worldwide client retention, while still at historically high levels, declined 1.0 percentage point fiscal year to date through March 31, 2009. The number of employees on our clients' payrolls in the U.S. decreased 4.2% in the third quarter as measured on a same-store-sales basis for clients on our AutoPay platform. The dollar value of new business sold worldwide during the quarter in Employer Services and PEO Services was 10% less than the prior year's third quarter. The dollar value of new business sold during the quarter represents the expected new annual recurring revenue dollars to be generated from each sale. Employer Services' pretax margin expanded 70 basis points from continued expense control and lower selling expenses from lower new business sales, partially offset by investments in client service resources.
PEO Services
"PEO Services' revenues increased 10% and pretax margin improved 80 basis points in the third quarter compared with the same period last year. Average worksite employees paid by PEO Services increased 14,000, or 8%, to over 195,000, compared with the third quarter of fiscal 2008.
Dealer Services
"Dealer Services' revenues declined 3% in the third quarter, while pretax margin expanded 20 basis points assisted by expense control initiatives, compared with the same period last year. The number of North American auto dealerships continued to decline from consolidations and closings. Despite the decline in the number of dealerships, ADP improved its market share compared with a year ago in both the North American and International marketplaces due to successful competitive win rates as well as increased deployment of our Autoline solution.
Interest on Funds Held for Clients and Interest Expense
"The safety and liquidity of our clients' funds are the foremost objectives of our investment strategy. Client funds are invested in accordance with ADP's prudent and conservative investment guidelines and the credit quality of the investment portfolio is predominantly AAA/AA.
"For the third fiscal quarter, interest on funds held for clients declined $34.2 million, or 17.2%, to $164.3 million due to a decline of 50 basis points in the average interest yield to 3.7%, and a decline of 6.2% in average client funds balances to $17.6 billion.
"Interest expense for the third quarter declined $5.4 million, or 68.6%, to $2.5 million compared with the same period last year. The decline in interest expense was primarily the result of a 340 basis point decline in our average commercial paper borrowing rate to 0.2%, partially offset by higher average daily commercial paper borrowings which increased $0.6 billion, to $1.1 billion. We utilize our short-term financing arrangements to satisfy our short-term funding requirements related to client funds obligations in order to extend the maturities of our investment portfolio, thus averaging our way through an interest rate cycle.
Fiscal 2009 forecast
"We continue to anticipate achieving 1% to 2% revenue growth, and the low end of our 10% to 14% growth forecast in diluted earnings per share from continuing operations, up from $2.18 in fiscal 2008 which excludes the net one-time gain of $0.02 per share recorded in the fourth quarter of fiscal 2008. Our revenue growth forecast for the year is negatively impacted approximately two percentage points due to our assumption of unfavorable foreign exchange rates continuing for the remainder of the fiscal year.
"Our business segment forecasts are also unchanged. For Employer Services, we continue to anticipate revenue growth of about 4% and about 100 basis points of pretax margin expansion. We continue to anticipate 12% to 13% revenue growth for PEO Services, and up to 30 basis points of pretax margin expansion. Despite the difficult selling environment, we are still on track to deliver over $1 billion worldwide in new business sales for Employer Services and PEO Services on a combined basis, which represents a decline of up to 13% from about $1.15 billion in new business sales last fiscal year. For Dealer Services, we continue to anticipate a 2% to 3% decline in revenues, and a flat pretax margin compared with a year ago.
"There is no change to our interest on funds held for clients forecast. We continue to anticipate a decline of $75 to $80 million, or 11% to 12%, from $684.5 million in fiscal 2008. This is based on an approximate 40 basis point decline in the expected average interest yield to about 4.0%, and a 2% to 3% decline in average client funds balances. This forecast continues to include an unfavorable Canadian foreign exchange rate which is expected to negatively impact full-year average client funds balance growth by 1.5 percentage points. The interest assumptions in our client funds portfolio forecast assume overnight funds will yield nearly 0.4% on average for the remainder of the fiscal year. The three-and-a-half and five-year U.S. government agency rates based on the forward yield curves as of May 1, 2009 were used to forecast new purchase rates for the client extended and client long portfolios, respectively.
"We continue to expect interest expense to decline about $50 million from $80.5 million in fiscal 2008 primarily from lower interest expense on our short-term financing related to our client funds extended investment strategy. Our average commercial paper borrowing rates are expected to decline approximately 320 basis points to about 1.0%, partially offset by an expected increase of about $0.5 billion in average daily commercial paper borrowings to about $2.0 billion.
"Our results, though lower than historical ADP standards, are due to our focused execution against our 5-point strategic growth program, as well as the strength of ADP's business model. While in the midst of one of the most challenging global economies of recent decades, I remain confident in ADP's opportunities for longer-term growth. I am especially proud of ADP's AAA credit rating. The breadth of our product portfolio has never been stronger. We are doing the right things to position ADP to leverage an economic recovery," Mr. Butler concluded.
Website Schedules
The schedules of quarterly and full-year revenue and pretax earnings by reportable segment for fiscal years 2007, 2008, and through the third quarter of 2009 have been posted to the Investor Relations home page (http://www.investquest.com/iq/a/adp/index.htm) of our website, www.adp.com, under Financial Data, along with the quarterly and full-year statements of earnings for fiscal 2007 and fiscal 2008.
An analyst conference call will be held today, Tuesday, May 5 at 8:30 a.m. EDT. A live webcast of the call will be available to the public on a listen-only basis. To listen to the webcast and view the slide presentation, go to ADP's home page, www.adp.com, or ADP's Investor Relations home page, http://www.investquest.com/InvestQuest/a/adp/, and click on the webcast icon. The presentation will be available to download and print approximately 60 minutes before the webcast at the ADP Investor Relations home page at http://www.investquest.com/iq/a/adp/index.htm. ADP's news releases, current financial information, SEC filings and Investor Relations presentations are accessible at the same Web site.
About ADP
Automatic Data Processing, Inc., with nearly $9 billion in revenues and over 585,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging nearly 60 years of experience, ADP offers a wide range of HR, payroll, tax and benefits administration solutions from a single source. ADP's easy-to-use, cost-effective solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.ADP.com.
Automatic Data Processing, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
March 31, June 30,
2009 2008
---------- ----------
Assets
------
Cash and cash equivalents/Short-term
marketable securities $ 1,395.9 $ 1,583.8
Other current assets 1,836.2 1,806.2
---------- ----------
Total current assets before
funds held for clients 3,232.1 3,390.0
Funds held for clients 21,250.1 15,418.9
---------- ----------
Total current assets 24,482.2 18,808.9
Long-term marketable securities (A) 77.7 76.5
Property, plant and equipment, net 715.5 742.9
Other non-current assets 3,899.0 4,106.1
---------- ----------
Total assets $ 29,174.4 $ 23,734.4
========== ==========
Liabilities and Stockholders' Equity
------------------------------------
Other current liabilities $ 1,857.3 $ 2,046.9
Client funds obligations 21,007.4 15,294.7
---------- ----------
Total current liabilities 22,864.7 17,341.6
Long-term debt 43.1 52.1
Other non-current liabilities 1,274.1 1,253.5
---------- ----------
Total liabilities 24,181.9 18,647.2
Total stockholders' equity 4,992.5 5,087.2
---------- ----------
Total liabilities and
stockholders' equity $ 29,174.4 $ 23,734.4
========== ==========
(A) As of June 30, 2008, long-term marketable securities include
$11.7 million of securities that have been pledged as collateral
under the Company's reverse repurchase agreement.
Automatic Data Processing, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In millions, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
-------- -------- -------- --------
REVENUES:
Revenues, other than
interest on funds
held for clients and
PEO revenues $1,884.1 $1,931.0 $5,409.1 $5,273.4
Interest on funds held
for clients 164.3 198.5 463.5 515.0
PEO revenues (A) 326.3 297.7 886.8 780.9
-------- -------- -------- --------
Total revenues 2,374.7 2,427.2 6,759.4 6,569.3
-------- -------- -------- --------
EXPENSES:
Costs of revenues:
Operating expenses 1,039.8 1,033.5 3,093.9 2,921.6
Systems development
and programming costs 118.8 132.0 372.2 385.1
Depreciation and
amortization 60.0 58.9 176.7 177.9
-------- -------- -------- --------
Total costs of revenues 1,218.6 1,224.4 3,642.8 3,484.6
Selling, general and
administrative expenses 520.4 585.3 1,620.2 1,673.4
Interest expense 2.5 7.9 29.8 68.0
-------- -------- -------- --------
Total expenses 1,741.5 1,817.6 5,292.8 5,226.0
-------- -------- -------- --------
Other expense (income),
net 4.1 (25.9) (77.1) (114.2)
-------- -------- -------- --------
Earnings from continuing
operations before
income taxes 629.1 635.5 1,543.7 1,457.5
Provision for income
taxes 226.6 231.9 562.7 521.8
-------- -------- -------- --------
Net earnings from
continuing operations $ 402.5 $ 403.6 $ 981.0 $ 935.7
Earnings / (loss) from
discontinued
operations, net of
provision for income
taxes of $0.9 for the
three months ended
March 31, 2008, and
$1.0 and $31.7 for the
nine months ended
March 31, 2009 and
2008, respectively. -- 10.0 (1.0) 66.5
-------- -------- -------- --------
Net earnings $ 402.5 $ 413.6 $ 980.0 $1,002.2
======== ======== ======== ========
Basic earnings per
share from continuing
operations $ 0.80 $ 0.78 $ 1.95 $ 1.79
Basic earnings per
share from discontinued
operations (B) -- 0.02 -- 0.13
-------- -------- -------- --------
Basic earnings per share $ 0.80 $ 0.80 $ 1.94 $ 1.91
======== ======== ======== ========
Diluted earnings per
share from continuing
operations $ 0.80 $ 0.77 $ 1.93 $ 1.77
Diluted earnings per
share from discontinued
operations (B) -- 0.02 -- 0.13
-------- -------- -------- --------
Diluted earnings per
share $ 0.80 $ 0.79 $ 1.93 $ 1.89
======== ======== ======== ========
Dividends per common share $ 0.3300 $ 0.2900 $ 0.9500 $ 0.8100
======== ======== ======== ========
(A) Professional Employer Organization ("PEO") revenues are net of
direct pass-through costs, primarily consisting of payroll wages
and payroll taxes, of $3,359.8 and $3,043.9 for the three months
ended March 31, 2009 and 2008, respectively, and $9,441.8 and
$8,413.0 for the nine months ended March 31, 2009 and 2008,
respectively.
(B) The $0.13 in basic and diluted EPS for the nine months ended
March 31, 2008 primarily represents the gain on the sale of the
Travel Clearing business.
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2009 2008 Change % Change
-------- -------- -------- --------
Revenues (A)
------------
Employer Services $1,808.2 $1,790.6 $ 17.6 1%
PEO Services 328.8 299.6 29.2 10%
Dealer Services 339.5 350.8 (11.3) (3)%
Other (101.8) (13.8) (88.0) (100)+%
-------- -------- --------
$2,374.7 $2,427.2 $ (52.5) (2)%
-------- -------- --------
Pre-tax earnings from
continuing operations (A)
--------------------------
Employer Services $ 602.7 $ 583.6 $ 19.1 3%
PEO Services 33.1 27.9 5.2 19%
Dealer Services 57.4 58.7 (1.3) (2)%
Other (64.1) (34.7) (29.4) (85)%
-------- -------- --------
$ 629.1 $ 635.5 $ (6.4) (1)%
-------- -------- --------
Pre-tax margin (A)
------------------
Employer Services 33.3% 32.6% 0.7%
PEO Services 10.1% 9.3% 0.8%
Dealer Services 16.9% 16.7% 0.2%
Other n/m n/m n/m
-------- -------- --------
26.5% 26.2% 0.3%
======== ======== ========
Nine Months Ended
March 31,
2009 2008 Change % Change
-------- -------- -------- --------
Revenues (A)
------------
Employer Services $5,020.2 $ 4,794.1 $ 226.1 5%
PEO Services 893.4 786.4 107.0 14%
Dealer Services 1,021.2 1,029.7 (8.5) (1)%
Other (175.4) (40.9) (134.5) (100)+%
-------- -------- --------
$6,759.4 $6,569.3 $ 190.1 3%
-------- -------- --------
Pre-tax earnings from
continuing operations (A)
--------------------------
Employer Services $1,403.9 $1,286.8 $ 117.1 9%
PEO Services 91.5 79.3 12.2 15%
Dealer Services 166.7 166.2 0.5 0%
Other (118.4) (74.8) (43.6) (58)%
-------- -------- --------
$1,543.7 $1,457.5 $ 86.2 6%
-------- -------- --------
Pre-tax margin (A)
------------------
Employer Services 28.0% 26.8% 1.2%
PEO Services 10.2% 10.1% 0.1%
Dealer Services 16.3% 16.1% 0.2%
Other n/m n/m n/m
-------- -------- --------
22.8% 22.2% 0.6%
======== ======== ========
(A) Prior year's segment results were adjusted to reflect fiscal year
2009 budgeted foreign exchange rates.
n/m - not meaningful
---------------------------------------------------------------------
Three Months Ended
March 31,
2009 2008 Change
-------- -------- --------
Components of other
expense (income), net:
----------------------
Interest income on
corporate funds $ (16.9) $ (25.0) $ 8.1
Realized gains on
available-for-sale
securities (2.8) (3.4) 0.6
Realized losses on
available-for-sale
securities 9.4 3.0 6.4
Other, net 14.4 (0.5) 14.9
-------- -------- --------
Total other expense
(income), net $ 4.1 $ (25.9) $ 30.0
======== ======== ========
Nine Months Ended
March 31,
2009 2008 Change
-------- -------- --------
Components of other
expense (income), net:
-----------------------
Interest income on
corporate funds $ (106.4) $ (112.0) $ 5.6
Realized gains on
available-for-sale
securities (5.4) (8.8) 3.4
Realized losses on
available-for-sale
securities 20.3 8.3 12.0
Other, net 14.4 (1.7) 16.1
-------- -------- --------
Total other expense
(income), net $ (77.1) $ (114.2) $ 37.1
======== ======== ========
---------------------------------------------------------------------
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts or where otherwise
stated)
(Unaudited)
Three Months Ended
March 31,
2009 2008 Change % Change
-------- -------- -------- --------
Earnings per share
information:
-------------------
Net earnings from
continuing operations $ 402.5 $ 403.6 $ (1.1) 0%
Net earnings $ 402.5 $ 413.6 $ (11.1) (3)%
Basic weighted average
shares outstanding 501.2 519.8 (18.6) (4)%
Basic earnings per
share from continuing
operations $ 0.80 $ 0.78 $ 0.02 3%
Basic earnings per
share $ 0.80 $ 0.80 $ -- 0%
Diluted net earnings
from continuing
operations $ 402.5 $ 403.6 $ (1.1) 0%
Diluted net earnings $ 402.5 $ 413.6 $ (11.1) (3)%
Diluted weighted
average shares
outstanding 502.4 523.2 (20.8) (4)%
Diluted earnings per
share from continuing
operations $ 0.80 $ 0.77 $ 0.03 4%
Diluted earnings per
share $ 0.80 $ 0.79 $ 0.01 1%
Nine Months Ended
March 31,
2009 2008 Change % Change
-------- -------- -------- --------
Earnings per share
information:
-------------------
Net earnings from
continuing operations $ 981.0 $ 935.7 $ 45.3 5%
Net earnings $ 980.0 $1,002.2 $ (22.2) (2)%
Basic weighted average
shares outstanding 504.0 524.0 (20.0) (4)%
Basic earnings per
share from continuing
operations $ 1.95 $ 1.79 $ 0.16 9%
Basic earnings per
share $ 1.94 $ 1.91 $ 0.03 2%
Diluted net earnings
from continuing
operations $ 981.0 $ 935.7 $ 45.3 5%
Diluted net earnings $ 980.0 $1,002.2 $ (22.2) (2)%
Diluted weighted
average shares
outstanding 507.0 529.9 (22.9) (4)%
Diluted earnings per
share from continuing
operations $ 1.93 $ 1.77 $ 0.16 9%
Diluted earnings per
share $ 1.93 $ 1.89 $ 0.04 2%
---------------------------------------------------------------------
Three Months Ended
March 31,
2009 2008
-------- --------
Key Statistics:
---------------
Internal revenue growth:
Employer Services 1% 8%
PEO Services 10% 20%
Dealer Services (5)% 6%
Employer Services:
Change in pays per
control - AutoPay
product (4.2)% 1.1%
Change in client
revenue retention
percentage -
worldwide (2.4) pts 0.9 pts
Employer Services/PEO
new business sales
growth - worldwide (10)% 4%
PEO Services:
Paid PEO worksite
employees at end of
period 193,000 183,000
Average paid PEO
worksite employees
during the period 195,000 181,000
Nine Months Ended
March 31,
2009 2008
-------- --------
Key Statistics:
---------------
Internal revenue growth:
Employer Services 5% 9%
PEO Services 14% 21%
Dealer Services (2)% 6%
Employer Services:
Change in pays per
control - AutoPay product (1.5)% 1.4%
Change in client revenue
retention percentage -
worldwide (1.0) pts 0.4 pts
Employer Services/PEO new
business sales growth -
worldwide (10)% 8%
PEO Services:
Paid PEO worksite
employees at end
of period 193,000 183,000
Average paid PEO
worksite employees
during the period 193,000 172,000
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts or where otherwise
stated)
(Unaudited)
Three Months Ended
March 31,
2009 2008 Change % Change
-------- -------- -------- --------
Average investment
balances at cost
(in billions):
Corporate, other than
corporate extended $ 1.3 $ 1.5 $ (0.2) (16)%
Corporate extended 1.2 0.7 0.5 66%
-------- -------- -------- --------
Total corporate 2.4 2.2 0.2 10%
Funds held for clients 17.6 18.7 (1.2) (6)%
-------- -------- -------- --------
Total $ 20.0 $ 21.0 $ (0.9) (4)%
======== ======== ======== ========
Average interest rates
earned exclusive of
realized losses (gains) on:
Corporate, other than
corporate extended 1.6% 4.6%
Corporate extended 4.0% 4.3%
-------- --------
Total corporate 2.8% 4.5%
Funds held for clients 3.7% 4.2%
-------- --------
Total 3.6% 4.3%
======== ========
Net unrealized gain (loss)
position at end of
period $ 249.5 $ 429.6
Average short-term
financing (in billions):
U.S. commercial paper
borrowings $ 1.1 $ 0.5
U.S. & Canadian reverse
repurchase agreement
borrowings 0.1 0.2
-------- --------
$ 1.2 $ 0.7
======== ========
Average interest rates paid on:
U.S. commercial paper
borrowings 0.2% 3.6%
U.S. & Canadian reverse
repurchase agreement
borrowings 0.8% 3.8%
Interest on funds held
for clients $ 164.3 $ 198.5 $ (34.2) (17)%
Corporate extended
interest income (B) 11.7 7.5 4.2 56%
Corporate interest
expense-short-term
financing (B) (0.8) (6.4) 5.6 88%
-------- -------- --------
$ 175.2 $ 199.6 $ (24.4)
======== ======== ========
Nine Months Ended
March 31,
2009 2008 Change % Change
-------- -------- -------- --------
Average investment
balances at cost (in billions):
Corporate, other than
corporate extended $ 1.4 $ 1.5 $ (0.1) (8)%
Corporate extended 2.4 1.8 0.7 37%
-------- -------- -------- --------
Total corporate 3.8 3.3 0.5 16%
Funds held for clients 15.2 15.5 (0.3) (2)%
-------- -------- -------- --------
Total $ 19.0 $ 18.8 $ 0.3 1%
======== ======== ======== ========
Average interest rates
earned exclusive of
realized losses (gains) on:
Corporate, other than
corporate extended 2.8% 4.8%
Corporate extended 4.3% 4.4%
-------- --------
Total corporate 3.7% 4.6%
Funds held for clients 4.1% 4.4%
-------- --------
Total 4.0% 4.5%
======== ========
Net unrealized gain
(loss) position at end
of period $ 249.5 $ 429.6
Average short-term
financing (in billions):
U.S. commercial paper
borrowings $ 2.0 $ 1.5
U.S. & Canadian reverse
repurchase agreement
borrowings 0.4 0.3
-------- --------
$ 2.4 $ 1.8
======== ========
Average interest rates paid on:
U.S. commercial paper
borrowings 1.2% 4.7%
U.S. & Canadian reverse
repurchase agreement
borrowings 1.7% 4.3%
Interest on funds held
for clients $ 463.5 $ 515.0 $ (51.5) (10)%
Corporate extended
interest income (B) 77.1 57.9 19.2 33%
Corporate interest
expense-short-term
financing (B) (23.9) (62.5) 38.6 62%
-------- -------- --------
$ 516.7 $ 510.4 $ 6.3
======== ======== ========
(B) While "Corporate extended interest income" and "Corporate interest
expense -short-term financing" are non-GAAP disclosures, management
believes this information is beneficial to reviewing the financial
statements of ADP. Management believes this information is beneficial
as it allows the reader to understand the extended investment strategy
for ADP's client funds assets, corporate investments and short-term
borrowings. A reconciliation of the non-GAAP measures to GAAP measures
is as follows:
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts or where otherwise
stated)
(Unaudited)
Three Months Ended
March 31,
2009 2008
-------- --------
Corporate extended
interest income $ 11.7 $ 7.5
All other interest
income 5.2 17.5
-------- --------
Total interest income
on corporate funds $ 16.9 $ 25.0
======== ========
Corporate interest
expense - short-term
financing $ 0.8 $ 6.4
All other interest
expense 1.7 1.5
-------- --------
Total interest expense $ 2.5 $ 7.9
======== ========
Nine Months Ended
March 31,
2009 2008
-------- --------
Corporate extended
interest income $ 77.1 $ 57.9
All other interest
income 29.3 54.1
-------- --------
Total interest income
on corporate funds $ 106.4 $ 112.0
======== ========
Corporate interest
expense - short-term
financing $ 23.9 $ 62.5
All other interest
expense 5.9 5.5
-------- --------
Total interest expense $ 29.8 $ 68.0
======== ========
This document 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 identified by the use of words like "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be" and other words of similar meaning, are forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: ADP's success in obtaining, retaining and selling additional services to clients; the pricing of products and services; changes in laws regulating payroll taxes, professional employer organizations and employee benefits; overall market and economic conditions, including interest rate and foreign currency trends; competitive conditions; auto sales and related industry changes; employment and wage levels; changes in technology; availability of skilled technical associates and the impact of new acquisitions and divestitures. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. These risks and uncertainties, along with the risk factors discussed under "Item 1A. - Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2008 and "Item 1A. - Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008, should be considered in evaluating any forward-looking statements contained herein.
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