AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2013

Automatic Data Processing, Inc. (ADP) reported solid revenue growth in fiscal year 2013, with total revenues increasing by 7% to $11.31 billion. This growth was driven by performance across all three segments: Employer Services, PEO Services, and Dealer Services. The company's strategic focus on cloud-based HCM solutions and expanding its global presence is evident in its continued investment in technology and salesforce productivity, which led to strong new business bookings. While net earnings from continuing operations saw a slight decrease of 1% to $1.36 billion, primarily due to a goodwill impairment charge of $42.7 million related to the ADP AdvancedMD business and a decline in interest income from client funds due to lower interest rates, the adjusted earnings present a more favorable picture. Adjusted net earnings increased by 5% to $1.41 billion, highlighting the underlying operational strength. ADP demonstrated a strong commitment to shareholder returns, repurchasing approximately $647 million in stock and returning $805 million through dividends. The company maintains a robust financial position with ample liquidity and a strong balance sheet. Despite facing challenges such as a lower interest rate environment impacting client fund interest income and ongoing investments in technology, ADP's diversified business model, high client retention rates, and market leadership position in human capital management solutions suggest resilience and continued growth potential. Investors should note the company's ongoing investment in systems development and programming, aiming to further enhance its cloud-based offerings and overall service capabilities.