10-KPeriod: FY2015

AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2015

Filed August 7, 2015For Securities:ADP

Summary

Automatic Data Processing, Inc. (ADP) reported solid financial performance for the fiscal year ended June 30, 2015, with total revenues growing 7% to $10.94 billion and net earnings from continuing operations increasing 11% to $1.38 billion. The company's strategic focus on Human Capital Management (HCM) solutions, including cloud-based offerings and HR Business Process Outsourcing, is driving this growth. A significant strategic move during the year was the spin-off of its Dealer Services business into CDK Global, Inc., allowing ADP to concentrate further on its core HCM strategy. ADP's two main segments, Employer Services and Professional Employer Organization (PEO) Services, both demonstrated strong revenue growth. Employer Services saw a 5% increase driven by new business bookings and client retention, while PEO Services experienced a substantial 17% revenue jump due to an increase in worksite employees. The company also highlighted strong new business bookings and continued client retention rates, reinforcing the resilience of its recurring revenue model. ADP returned significant value to shareholders through dividends and share repurchases, underscoring its commitment to shareholder returns.

Financial Highlights

51 data points
Beta

Revenue

$10.94B

Net Income

$1.45B

13.3% Net Margin

EPS (Diluted)

$3.05

Total Assets

$33.11B

Cash & Equivalents

$1.64B

Free Cash Flow

$1.97B

Financial Statements
Beta
Revenue$10.94B
SG&A Expenses$2.50B
Operating Expenses$8.93B
Interest Expense$6.50M
Net Income$1.45B
EPS (Basic)$3.07
EPS (Diluted)$3.05
Shares Outstanding (Basic)472.60M
Shares Outstanding (Diluted)475.80M

Key Highlights

  • 1Total revenues grew 7% to $10.94 billion in fiscal year 2015.
  • 2Net earnings from continuing operations increased 11% to $1.38 billion.
  • 3Successfully spun off its Dealer Services business into CDK Global, Inc.
  • 4Employer Services segment revenues grew 5%, driven by new bookings and client retention.
  • 5PEO Services segment revenues increased by a strong 17%, reflecting growth in worksite employees.
  • 6Total new business bookings increased by 13% globally.
  • 7ADP returned $2.5 billion to shareholders through dividends ($927.6 million) and share repurchases ($1.56 billion).

Frequently Asked Questions

ADP's operations were primarily organized into two reportable segments: Employer Services and Professional Employer Organization (PEO) Services. The company also had a former Dealer Services business, which was spun off in September 2014.

In fiscal year 2015, ADP reported a 7% increase in total revenues to $10.94 billion and an 11% increase in net earnings from continuing operations to $1.38 billion. Diluted earnings per share from continuing operations grew 12% to $2.89.

The spin-off of the Dealer Services business into CDK Global, Inc. on September 30, 2014, allowed ADP to sharpen its focus on its core Human Capital Management (HCM) strategy. The company received an $825 million tax-free dividend from CDK in connection with the spin-off, which partially funded share repurchases.

The Employer Services segment saw a 5% revenue increase due to new business bookings and client retention, with earnings from continuing operations before income taxes up 7%. The PEO Services segment experienced robust growth, with revenues up 17% and earnings from continuing operations before income taxes up 30%, driven by an increase in worksite employees.