What is the company's primary business and how is it segmented?

ADP is a leading provider of human capital management (HCM) solutions and integrated computing solutions for vehicle dealers. Its business is segmented into three reportable segments: Employer Services, Professional Employer Organization (PEO) Services, and Dealer Services. Employer Services offers a broad range of HR and payroll solutions. PEO Services (ADP TotalSource) provides comprehensive employment administration outsourcing through a co-employment model. Dealer Services offers technology solutions and digital marketing for automotive retailers.

What is the company's financial performance like for the fiscal year ended June 30, 2014?

For the fiscal year ended June 30, 2014, ADP reported total revenues of $12.2 billion, an 8% increase year-over-year. Net earnings from continuing operations were $1.5 billion, an 11% increase, resulting in diluted earnings per share of $3.11. The company highlighted strong revenue retention and growth across its key segments, although interest income on funds held for clients decreased due to lower interest rates.

What are the key strategic initiatives for ADP?

ADP's strategy focuses on three pillars: growing its cloud-based HCM, benefits, and payroll solutions for the U.S. market; investing in and scaling its HR Business Process Outsourcing (BPO) solutions; and leveraging its global presence to offer HCM, benefits, and payroll solutions internationally. A significant strategic move announced was the planned spin-off of its Dealer Services business to create two independent, focused companies.

How is ADP returning value to shareholders?

ADP demonstrated a strong commitment to shareholder returns. In fiscal year 2014, the company returned $1.55 billion to shareholders through dividends ($883.1 million) and share repurchases ($667.3 million). ADP also highlighted its track record of 39 consecutive years of dividend increases and planned to continue returning capital to shareholders following the Dealer Services spin-off.

ADP 10-K FY2014 Annual Report — Revenue, Net Income, EPS

Summary

Automatic Data Processing, Inc. (ADP) reported solid financial performance for the fiscal year ended June 30, 2014. The company achieved an 8% increase in total revenues, reaching $12.2 billion, driven by growth across its Employer Services, PEO Services, and Dealer Services segments. Net earnings from continuing operations saw an 11% increase to $1.5 billion, translating to diluted earnings per share of $3.11. The company highlighted strong client retention rates and consistent cash flow generation, underscoring the resilience of its business model. A significant strategic development during the period was the Board of Directors' approval to spin off the Dealer Services business into an independent publicly traded company, expected to be completed by October 2014. This move is intended to allow both entities to focus on their respective core businesses and strategic opportunities. ADP also continued its commitment to shareholder returns, repurchasing approximately $667 million in stock and increasing its dividend for the 39th consecutive year.

Financial Highlights

50 data points

Beta

Revenue

$10.23B

Net Income

$1.52B

0.1% Net Margin

EPS (Diluted)

$3.14

Total Assets

$32.06B

Cash & Equivalents

$1.98B

Free Cash Flow

$1.82B

Financial Statements

Beta

Revenue	$10.23B
SG&A Expenses	$2.37B
Operating Expenses	$10.00B
Interest Expense	$6.10M
Net Income	$1.52B
EPS (Basic)	$3.17
EPS (Diluted)	$3.14
Shares Outstanding (Basic)	478.90M
Shares Outstanding (Diluted)	483.10M

Key Highlights

1Total revenues increased by 8% to $12.2 billion in fiscal year 2014.
2Net earnings from continuing operations grew by 11% to $1.5 billion.
3Diluted earnings per share from continuing operations increased by 11% to $3.11.
4The company announced plans to spin off its Dealer Services business, expected to be completed by October 2014.
5Employer Services, the largest segment, saw an 8% revenue increase and a 14% rise in earnings before income taxes.
6PEO Services demonstrated strong growth with a 15% revenue increase and a 17% rise in earnings before income taxes.
7ADP returned $1.55 billion to shareholders through dividends ($883.1 million) and share repurchases ($667.3 million).

AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2014

Summary

Financial Highlights

Key Highlights

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