Summary
Automatic Data Processing, Inc. (ADP) reported a 2% increase in total revenues to $1.65 billion for the quarter ended September 30, 2002, compared to the same period last year. Net earnings also saw a 7% rise, reaching $210.4 million, with diluted earnings per share increasing to $0.34 from $0.31 in the prior year. The Employer Services segment was a key driver of growth, with revenues up 4%, though Brokerage Services experienced a 2% revenue decline due to industry consolidation and pricing pressures. Financially, ADP maintains a strong position with $2.3 billion in cash and marketable securities and a low long-term debt-to-equity ratio of 2%. The company anticipates continued growth, forecasting a mid-single-digit increase in revenue and earnings per share for fiscal year 2003. ADP also highlighted its robust liquidity through a new $4.0 billion revolving credit agreement and an established commercial paper program, with no commercial paper outstanding as of the reporting date.
Key Highlights
- 1Total revenues increased by 2% to $1.65 billion for the quarter ended September 30, 2002.
- 2Net earnings grew by 7% to $210.4 million, with diluted EPS rising to $0.34.
- 3Employer Services revenue increased by 4%, driven by new business sales and client retention.
- 4Brokerage Services revenue declined by 2% due to industry consolidation and pricing pressures.
- 5The company reported a strong financial position with $2.3 billion in cash and marketable securities.
- 6ADP forecasts mid-single-digit growth in revenue and EPS for fiscal year 2003.
- 7A new $4.0 billion unsecured revolving credit facility was established in October 2002.