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PAYX · Paychex

33 filings

10-K

PAYX 10-K Annual Reports

Paychex - 33 annual reports

Filing record · 2016–202610-K1110-Q328-K99

2026
Paychex Annual Report, Year Ended May 31, 2026
Paychex, Inc. reported fiscal 2026 (year ended May 31, 2026) total revenue of $6.5 billion, up 17% from $5.57 billion in fiscal 2025, with Paycor, acquired April 14, 2025, contributing approximately 12% to total revenue growth. Operating income rose 14% to $2.51 billion, but operating margin declined to 38.6% from 39.6%, reflecting $304.2 million of acquisition-related costs. Adjusted operating income, a non-GAAP measure, was $2.81 billion, up 19%, with adjusted operating margin of 43.2% versus 42.5% in the prior year. Net income was $1.76 billion, up 6%, and diluted EPS was $4.89, up 7%; adjusted diluted EPS was $5.51, up 11%. Interest expense more than doubled to $269.5 million from $105.4 million, driven by the $4.2 billion of Corporate Bonds issued in April 2025 to fund the Paycor acquisition. Operating cash flow was $2.56 billion, compared with $1.90 billion a year earlier. Dividends paid totaled $1.59 billion, about 90% of net income, and the company repurchased 5.6 million shares for $611.0 million. The Board approved a new $1.0 billion repurchase program with no expiration date on January 16, 2026. Management highlights its WISE AI engine, which now powers approximately 600 AI features and agents, and approximately 840,000 total customers, of which about 800,000 are payroll clients. Total long-term borrowings were $4.6 billion at May 31, 2026, and unused credit facility capacity was $2.0 billion. The auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion with a critical audit matter on PEO workers' compensation insurance reserves, which totaled $237.7 million.
Jul 17, 2026
2025
Paychex Annual Report, Year Ended May 31, 2025
Paychex, Inc. (PAYX) reported fiscal 2025 (year ended May 31, 2025) total revenue of $5.57 billion, up 6% from $5.28 billion in fiscal 2024, while operating income rose 2% to $2.21 billion and net income declined 2% to $1.66 billion. Diluted earnings per share were $4.58 versus $4.67 a year earlier. Adjusted diluted EPS, a non-GAAP measure, was $4.98, up 6%. Results were affected by the April 14, 2025 acquisition of Paycor HCM, Inc. for total purchase consideration of about $4.1 billion, which was funded by $4.2 billion of fixed-rate corporate bonds, and by $162.3 million of acquisition-related costs. Interest expense rose to $105.4 million from $37.3 million, and the expiration of the Employee Retention Tax Credit program lowered ancillary revenue. Management Solutions revenue was $4.07 billion, up 5%, and PEO and Insurance Solutions revenue was $1.34 billion, up 6%. Paychex served approximately 800,000 clients as of May 31, 2025, and client retention remained in the range of 82% to 83%. Dividends paid to stockholders were $1.45 billion, representing approximately 87% of fiscal 2025 net income. Cash provided by operating activities was $1.90 billion. The balance sheet shows total assets of $16.56 billion and long-term debt of $4.55 billion net of issuance costs, compared with $10.38 billion and $798.6 million a year earlier. Goodwill rose to $4.51 billion and intangible assets to $1.95 billion, both mainly from Paycor. The company disclosed covenants requiring a maximum leverage ratio of 3.5:1.0 and a minimum interest coverage ratio of 2.0:1.0, and stated it was in compliance as of May 31, 2025.
Jul 11, 2025
2024
Paychex Annual Report, Year Ended May 31, 2024
Paychex, Inc. (NASDAQ: PAYX) reports its annual results for the fiscal year ended May 31, 2024. The company describes itself as a human capital management (HCM) provider of HR, employee benefits, insurance, and payroll services for small- to medium-sized businesses in the U.S. and parts of Europe, serving greater than 745,000 clients as of May 31, 2024. Total revenue rose to $5,278.3 million from $5,007.1 million, operating income increased to $2,174.1 million from $2,033.1 million, and net income reached $1,690.4 million, or $4.67 diluted earnings per share, compared with $4.30 in fiscal 2023. Management also cites one-time cost optimization initiatives of $39.5 million in the fourth quarter, which lifted adjusted diluted earnings per share to $4.72 on a non-GAAP basis. The filing shows continued cash generation and capital returns. Net cash provided by operating activities was $1,897.7 million, and dividends paid totaled $1,315.3 million, or $3.65 per share. The company repurchased 1.5 million shares for $169.2 million during fiscal 2024 and had $400.0 million of authorization remaining under its program expiring May 31, 2027. Liquidity included $1.6 billion of cash, restricted cash and corporate investments, along with $2.0 billion of unused credit facility capacity and $800.0 million of Senior Notes outstanding. Key risks highlighted include cybersecurity and data privacy exposure, co-employment and workers' compensation cost risks in the PEO business, client fund and interest income sensitivity to interest rates and tax remittance rules, and covenant compliance under its debt agreements. The company also completed its acquisition of Alterna Capital Solutions, LLC on July 31, 2023, for a base price of $95.1 million plus debt settlement of $128.9 million, net of cash acquired.
Jul 11, 2024
2023
Paychex Annual Report, Year Ended May 31, 2023
Paychex, Inc. (NASDAQ: PAYX) reports results for fiscal year ended May 31, 2023. Total revenue rose to $5.007 billion from $4.612 billion, and total service revenue was $4.907 billion, up 8%. Operating income was $2.033 billion, up 10%, with operating margin of 40.6% versus 39.9% a year earlier. Net income was $1.557 billion, up 12%, and diluted EPS was $4.30 versus $3.84. Adjusted diluted EPS, a non-GAAP measure, was $4.27. Management Solutions revenue was $3.7 billion (up 8%) and PEO and Insurance Solutions revenue was $1.2 billion (up 6%). Interest on funds held for clients grew 73% to $99.8 million on higher average interest rates. The company serves approximately 740,000 payroll and PEO clients as of May 31, 2023, with client retention in the range of 82% to 83%. Cash flow from operations was $1.7 billion. Dividends paid totaled $1.175 billion, or $3.26 per share declared, versus $2.77 a year earlier. No shares were repurchased in fiscal 2023, and $327.1 million remains available under the repurchase program, which expires January 31, 2024. Total short-term and long-term borrowings were $808.4 million, and the company had approximately $1.99 billion of available lines of credit. Key risks flagged in the filing include exposure to client fund shortfalls on PEO and payroll payments, interest-rate and unrealized-loss exposure on the AFS portfolio (net unrealized losses of $175.3 million as of May 31, 2023), covenant limits on the Senior Notes, cybersecurity and data privacy, and pressure from macroeconomic conditions and inflation on small and medium-sized clients. PricewaterhouseCoopers issued an unqualified opinion, and management reported effective internal control over financial reporting.
Jul 14, 2023
2022
Paychex Annual Report, Year Ended May 31, 2022
Paychex, Inc. reported fiscal 2022 (year ended May 31, 2022) results that grew across the board. Total revenue was $4,611.7 million, up 14% from $4,056.8 million in fiscal 2021, driven by Management Solutions revenue of $3,442.7 million and PEO and Insurance Solutions revenue of $1,111.3 million, each up 14%. Operating income rose 26% to $1,840.0 million, and net income increased 27% to $1,392.8 million, or $3.84 diluted earnings per share. Adjusted diluted EPS, a non-GAAP measure, was $3.77. The company stated its client base exceeded 730,000 payroll and PEO clients, with client retention of approximately 84%. Cash flow from operations was $1,505.5 million, and dividends paid totaled $999.6 million, or about 72% of net income. Cash, restricted cash and total corporate investments totaled $1.3 billion, and total borrowings were $806.4 million, including $800.0 million of Senior Notes. The company also disclosed a $400.0 million share repurchase program authorized in July 2021 that expires January 31, 2024. Unrealized losses on available-for-sale securities of $136.3 million reflect rising interest rates, and the filing notes a $153.7 million net unrealized loss as of July 13, 2022. The filing also highlights ongoing risks, including cybersecurity and data privacy exposure, co-employment liabilities within the PEO business, rising health and workers' compensation costs, inflation, and the continuing effects of COVID-19. PricewaterhouseCoopers LLP issued an unqualified opinion on the financial statements and on internal control over financial reporting, and management concluded that internal control was effective as of May 31, 2022.
Jul 15, 2022
2021
Paychex Annual Report, Year Ended May 31, 2021
Paychex, Inc. reported fiscal 2021 (year ended May 31, 2021) results in this 10-K, filed July 16, 2021. Total revenue was $4,056.8 million versus $4,040.5 million in fiscal 2020, with total service revenue of $3,997.5 million (up 1%). Management Solutions revenue rose 2% to $3,023.4 million, while PEO and Insurance Solutions revenue declined 2% to $974.1 million. Interest on funds held for clients fell 32% to $59.3 million, reflecting lower average interest rates and lower realized gains. Operating income was $1,460.7 million, essentially flat, and net income was $1,097.5 million, or $3.03 per diluted share (versus $3.04). Adjusted diluted EPS, a non-GAAP measure, was $3.04 versus $3.00, after adding back $32.2 million in one-time cost-saving initiative charges. Client growth and retention were the main operating positives. The payroll and PEO client base exceeded 710,000 as of May 31, 2021, up from 680,000, and client retention was at record levels of approximately 85%. Cash flow from operations was $1,260.3 million, and dividends paid totaled $908.7 million. Management noted that the COVID-19 pandemic reduced check volumes and PEO worksite employees during the first three quarters, and that the company substantially completed cost-saving initiatives including a geographic footprint reduction. The balance sheet shows $995.2 million of cash and cash equivalents, $800.0 million of Senior Notes, and total stockholders' equity of $2,948.0 million. The board authorized an additional $400.0 million share repurchase program in July 2021, and the company declared a quarterly dividend of $0.66 per share.
Jul 16, 2021
2020
Paychex Annual Report, Year Ended May 31, 2020
Paychex, Inc. (PAYX) reported fiscal 2020 results for the year ended May 31, 2020, with total revenue of $4.04 billion, up 7% from $3.77 billion in fiscal 2019. Operating income rose 7% to $1.46 billion, net income increased 6% to $1.10 billion, and diluted earnings per share increased 6% to $3.04. Growth was helped by the Oasis acquisition, which contributed approximately 4% to total revenue growth. PEO and Insurance Solutions revenue grew 22% to $990.6 million, while Management Solutions revenue grew 3% to $2.96 billion. The filing describes a COVID-19 impact on the fourth quarter. Management Solutions revenue was hurt by lower check volumes, and PEO and Insurance Solutions revenue declined on fewer worksite employees. Management reported sequential improvement in key business metrics since the end of April. Client retention was at record levels of over 83%, and the company served more than 680,000 payroll and PEO clients as of May 31, 2020. The balance sheet remained strong, with cash, restricted cash and total corporate investments of $1.01 billion and total debt of $801.9 million. Operating cash flow was $1.44 billion, and the company paid $889.4 million in dividends, about 81% of net income. The company also repurchased $171.9 million of stock during the year, with $228.1 million remaining under its authorization. Risk factors highlighted COVID-19 exposure, client financial pressure, cybersecurity, PEO co-employment liabilities and covenant compliance under its Oasis-related senior notes.
Jul 17, 2020
2019
Paychex Annual Report, Year Ended May 31, 2019
Paychex, Inc. reported fiscal 2019 (year ended May 31, 2019) results marked by strong revenue growth driven by its PEO and Insurance Services business and the acquisition of Oasis Outsourcing Group Holdings, L.P., completed December 20, 2018 for a purchase price of $992.2 million net of cash acquired. Total revenue rose 12% to $3.77 billion, total service revenue increased 11% to $3.69 billion, and Management Solutions revenue grew 4% to $2.88 billion. PEO and Insurance Services revenue increased 46% to $814.2 million, or 19% excluding Oasis. Operating income increased 6% to $1.37 billion, and net income increased 4% to $1.03 billion, with diluted earnings per share of $2.86. Adjusted diluted earnings per share, a non-GAAP measure, rose 11% to $2.84. The Oasis acquisition was financed with cash on hand and $800.0 million of long-term private placement Senior Notes, Series A and B, carrying fixed rates of 4.07% and 4.25% and maturing in 2026 and 2029. As of May 31, 2019, the company had cash, restricted cash, and total corporate investments of $779.9 million and long-term borrowings, net, of $796.4 million. Cash flows from operations were $1.3 billion, and dividends paid totaled $826.8 million, equal to 80% of net income. The quarterly dividend was increased 11% to $0.62 per share in May 2019, and the Board approved a new repurchase program of up to $400.0 million running through May 31, 2022. The filing reports that the company served approximately 670,000 payroll and PEO clients as of May 31, 2019, with client retention above 82% of the beginning client base. Management reported effective internal control over financial reporting, excluding Oasis, which represented 8% of total assets and 4% of revenues for the year.
Jul 24, 2019
2018
Paychex Annual Report, Year Ended May 31, 2018
Paychex, Inc. reported fiscal 2018 (year ended May 31, 2018) total revenue of $3.38 billion, up 7% from $3.15 billion in fiscal 2017, and net income of $933.7 million, up 14%. Diluted earnings per share rose 15% to $2.58. Service revenue was $3.32 billion, with Human Resource Services (HRS) revenue up 14% to $1.5 billion and payroll service revenue up 2% to $1.8 billion. Operating income increased 4% to $1.29 billion. Results include a one-time $32.6 million expense for terminating certain license agreements and a net tax benefit from the Tax Cut and Jobs Act; the effective tax rate fell to 28.0% from 34.3%. The company ended the year with cash and total corporate investments of $719.7 million, no debt, and cash flow from operations of $1.28 billion. It paid $739.7 million in dividends, equal to 79% of net income, and raised its quarterly dividend to $0.56 per share. It repurchased $143.1 million of stock during the year. The company served over 650,000 payroll clients as of May 31, 2018, including the Lessor Group acquisition, up from approximately 605,000 a year earlier. Excluding Lessor, the payroll client base was relatively flat. The filing highlights risks tied to regulatory change, cybersecurity and data privacy, PEO co-employment liability, and interest income on client funds, which depends on interest rates and tax remittance timing. Management believes pending legal matters will not have a material adverse effect on financial position or results of operations.
Jul 20, 2018
2017
Paychex Annual Report, Year Ended May 31, 2017
Paychex, Inc. reported fiscal 2017 (year ended May 31, 2017) results showing continued growth. Total revenue rose 7% to $3.2 billion ($3,151.3 million), operating income increased 8% to $1.2 billion ($1,239.6 million), and net income increased 8% to $817.3 million, or $2.25 per diluted share. The company serviced approximately 605,000 payroll clients, flat versus a year earlier, and client retention was approximately 81% of the beginning client base, down slightly from prior near-record levels. Growth was driven mainly by Human Resource Services (HRS) revenue, which rose 12% to $1.3 billion, while payroll service revenue grew 3% to $1.8 billion on higher revenue per check from price increases. The balance sheet remained conservative, with cash and total corporate investments of $777.4 million and no debt. Operating cash flow was $960.4 million, down from $1,018.2 million in fiscal 2016, mainly due to changes in operating assets and liabilities. Dividends paid totaled $662.3 million, or 81% of net income. The company repurchased 2.9 million shares for $166.2 million during the year and had $243.5 million remaining under its July 2016 repurchase program. Management's fiscal 2018 guidance calls for payroll service revenue growth of 1% to 2%, HRS revenue growth of 8% to 10%, total revenue growth of approximately 5%, and diluted EPS growth of 5% to 6%. The company also raised its quarterly dividend to $0.50 per share from $0.46, announced July 13, 2017. Key risks highlighted include potential repeal or modification of the Affordable Care Act, which could affect revenue from its employer shared responsibility service, along with cybersecurity, co-employment liability in its PEO business, and interest income sensitivity to rates.
Jul 21, 2017
2016
Paychex Annual Report, Year Ended May 31, 2016
Paychex, Inc. reported fiscal 2016 (year ended May 31, 2016) results showing growth across its core business. Total revenue rose 8% to $2.95 billion, service revenue rose 8% to $2.91 billion, and operating income rose 9% to $1.15 billion ($1,146.6 million). Net income increased 12% to $756.8 million, and diluted earnings per share increased 13% to $2.09. Payroll service revenue grew 4% to $1.73 billion, while HRS revenue grew 13% to $1.18 billion. Payroll client base grew 2% to approximately 605,000 clients, and client retention was in excess of 82%. The filing attributes part of the earnings growth to a first-quarter net tax benefit of about $0.05 per diluted share related to prior-year income from customer-facing software. Excluding this benefit, net income and diluted EPS would have increased 9% and 10%, respectively. Paychex acquired Advance Partners in December 2015 for a base purchase price of $190.5 million plus debt settlement of $118.4 million, net of $12.8 million cash acquired. The company carries no debt, held cash and total corporate investments of $793.2 million, and paid dividends of $606.5 million, equal to 80% of net income. Operating cash flow exceeded $1.0 billion for the first time, at $1,018.2 million. For fiscal 2017, management guided to total service revenue growth of 7% to 8%, HRS revenue growth of 12% to 14%, and net income growth of approximately 8% excluding the prior-year tax benefit. The filing also notes that the quarterly dividend was raised to $0.46 per share from $0.42, announced July 7, 2016. The company's interest on funds held for clients is sensitive to interest rates, which remained low, with a combined average return of 1.1% for fiscal 2016.
Jul 22, 2016
2015
Paychex Annual Report, Year Ended May 31, 2015
Paychex, Inc. reported fiscal 2015 (year ended May 31, 2015) results showing continued growth across its payroll and human resource services. Total revenue rose 9% to $2.7 billion, with service revenue of $2,697.5 million, driven by payroll service revenue growth of 4% to $1.7 billion and HRS revenue growth of 18% to $1.0 billion. Operating income increased 7% to $1.05 billion, and net income rose 8% to $674.9 million, or $1.85 per diluted share. The company paid $551.8 million in dividends, equal to 82% of net income, and ended the year with cash and total corporate investments of $936.4 million and no debt. Management highlighted record client retention of over 82% of the beginning-of-year client base, a client base of approximately 590,000, and growth in the Paychex HR Services and PEO business, which reached $1 billion in HRS revenue. The company guided fiscal 2016 total service revenue growth of 7% to 8% and net income growth of 8% to 9%, and expects operating income net of certain items to be approximately 38% of service revenue. Management also noted that the minimum premium health plan within the PEO is a lower-margin product that weighed on margins, and that interest rates on high-quality instruments remain low, with the average return on combined client and corporate portfolios at 1.0%. The filing states that management believes pending legal matters will not have a material adverse effect on financial position or results of operations, and that the company's internal control over financial reporting was effective as of May 31, 2015. Risk factors emphasize regulatory change, health care reform, technology and security breaches, and the PEO co-employment and health and workers' compensation cost exposure.
Jul 21, 2015
2014
Paychex Annual Report, Year Ended May 31, 2014
Paychex, Inc. reported fiscal 2014 (year ended May 31, 2014) results showing growth across its payroll and Human Resource Services (HRS) businesses. Total service revenue rose 8% to $2.48 billion, with payroll service revenue up 4% to $1.6 billion and HRS revenue up 18% to $878.9 million (12% excluding the PEO direct cost adjustment). Net income increased 10% to $627.5 million, and diluted earnings per share rose to $1.71 from $1.56. Operating income increased 9% to $982.7 million. Client retention reached a record approximately 82% of the beginning-of-year client base, and the client base grew to approximately 580,000. Cash flow from operations was $880.9 million, and the company held $936.8 million in cash and total corporate investments with no debt. Dividends paid totaled $510.6 million, representing 81% of net income. The company repurchased 6.2 million shares for $249.7 million during the year and approved a new $350 million repurchase program expiring May 31, 2017. Management guided fiscal 2015 total service revenue growth of 8% to 10% and net income growth of 6% to 8%. Key risks cited in the filing include changes in government regulations, health care reform impacts on the PEO business, health insurance and workers' compensation cost trends, the effect of low interest rates on interest earned on client funds, security breaches, and co-employment liability. The company stated that it believes resolution of outstanding legal matters will not have a material adverse effect on its financial position or results of operations.
Jul 22, 2014
2013
Paychex Annual Report, Year Ended May 31, 2013
Paychex, Inc. reported fiscal 2013 (year ended May 31, 2013) results showing continued growth. Total revenue was $2.33 billion, up from $2.23 billion in fiscal 2012, and net income was $569.0 million, or $1.56 per diluted share, compared with $548.0 million and $1.51 in fiscal 2012. Service revenue reached $2.29 billion, driven by payroll service revenue of $1.54 billion and Human Resource Services (HRS) revenue of $746.0 million, which grew 10%. Interest on funds held for clients declined to $41.0 million amid low interest rates, with the combined portfolio earning an average return of 1.0% for the year. Fiscal 2013 results were reduced by approximately $0.04 per diluted share from the settlement of a state income tax matter. The company ended the year with cash and total corporate investments of $874.6 million and no debt. Operating cash flow was $675.3 million, and dividends paid totaled $476.7 million, or 84% of net income. Client count reached approximately 570,000, and client retention exceeded 81% of the beginning client base, a record level. The company reported 12,400 employees and described its Paychex Next Generation platform and mobile offerings as key to future growth. Management's fiscal 2014 guidance projects total service revenue growth of 5% to 6% and net income growth of 8% to 9%. The company also entered a $500 million unsecured five-year credit facility in June 2013. Management believes resolution of pending legal matters will not have a material adverse effect, and the company disclosed that its PEO business, a co-employment model, carries exposure to health insurance and workers' compensation cost trends.
Jul 22, 2013
2012
Paychex Annual Report, Year Ended May 31, 2012
Paychex, Inc. (PAYX) reported fiscal 2012 (year ended May 31, 2012) results that reflect sustained growth. Total revenue rose 7% to $2.2 billion, with service revenue of $2,186.2 million, including payroll service revenue of $1.51 billion (up 5%) and Human Resource Services revenue of $676.2 million (up 13%). Operating income increased 9% to $853.9 million, and net income rose 6% to $548.0 million, or $1.51 per diluted share. Operating income, net of certain items (a non-GAAP measure that excludes interest on funds held for clients), increased 10% to $810.3 million. The company remains debt-free and held cash and total corporate investments of $790.0 million as of May 31, 2012. Management described new business formation as challenged and revenue growth as moderate, while the interest rate environment continued to weigh on results: interest on funds held for clients fell 9% to $43.6 million, and the combined portfolio earned an average return of 1.1%, down from 1.3% in fiscal 2011. Operating cash flow was $706.6 million, and dividends paid totaled $460.5 million, or 84% of net income. For fiscal 2013, the company's guidance calls for total service revenue growth of 5% to 6%, net income growth of 5% to 7%, and operating income, net of certain items, as a percent of service revenue of approximately 37%. Client count reached approximately 567,000 as of May 31, 2012, with client retention of approximately 80%.
Jul 20, 2012
2011
Paychex Annual Report, Year Ended May 31, 2011
Paychex, Inc. (PAYX) reported fiscal 2011 (year ended May 31, 2011) total revenue of $2,084.3 million, up 4% from $2,000.8 million in fiscal 2010, and net income of $515.3 million, or $1.42 diluted earnings per share, up 8%. Service revenue rose 5% to $2,036.2 million, led by Human Resource Services revenue, which increased 10% to $597.4 million, while payroll service revenue increased 2% to $1.4 billion. Interest on funds held for clients fell 13% to $48.1 million as average interest rates earned declined to 1.3% from 1.5%. Operating income rose 8% to $786.4 million, and operating income net of certain items, a non-GAAP measure, rose 7% to $738.3 million. Fiscal 2010 results included an $18.7 million litigation reserve charge. Client count grew to approximately 564,000 as of May 31, 2011, up 5.2% from about 536,000, though the company said excluding 33,000 SurePayroll clients the base would have declined 0.9%. Client retention improved to approximately 79%, and checks per client increased 2.1%. Management attributed modest revenue growth to flat new sales units, largely due to lack of growth in new business starts. The company acquired SurePayroll, Inc. for $114.9 million and ePlan Services, Inc. for $15.2 million, both described as not significant to consolidated financial statements. The balance sheet remained conservative, with cash and total corporate investments of $671.3 million, no debt, and stockholders' equity of $1,496.2 million. Cash dividends of $1.24 per share were paid, totaling $448.8 million, or 87% of net income. For fiscal 2012, guidance projects total service revenue growth of 7% to 9%, net income growth of 5% to 7%, and an effective tax rate of approximately 35%.
Jul 15, 2011
2010
Paychex Annual Report, Year Ended May 31, 2010
Paychex, Inc. (PAYX) reported fiscal 2010 (year ended May 31, 2010) results marked by a weak economy. Total revenue declined 4% to $2.0 billion, with service revenue down 3% and interest on funds held for clients down 27% to $55.0 million. Operating income fell 10% to $724.8 million, and net income decreased 11% to $477.0 million, or $1.32 per diluted share. The filing attributes the decline to lower client counts (about 536,000 clients, down 3.2%), reduced checks per client, and lower interest rates. A $18.7 million charge to increase the Rapid Payroll litigation reserve reduced diluted earnings per share by $0.03. The company ended the year with cash and total corporate investments of $656.9 million and no debt. Cash flow from operations decreased 11% to $610.9 million, and dividends of $448.6 million were paid, representing 94% of net income. Management indicated that the key indicators showed modest improvement as the year progressed, including client losses down 6% and checks per client up 1.1% in the fourth quarter. For fiscal 2011, management projects payroll service revenue to be flat, Human Resource Services revenue to rise 10% to 13%, and interest on funds held for clients to fall 12% to 17%. Net income is expected to improve slightly over fiscal 2010. The filing also discloses that CEO Jonathan J. Judge resigned effective July 31, 2010, and that the company faces a pending New York State tax audit in which proposed adjustments exceed the recorded reserve.
Jul 16, 2010
2009
Paychex Annual Report, Year Ended May 31, 2009
Paychex, Inc. filed its annual report on Form 10-K for the fiscal year ended May 31, 2009, describing itself as a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. As of May 31, 2009, it served approximately 554,000 clients and had about 12,500 employees. Fiscal 2009 was shaped by a weak U.S. economy, the credit crisis, and very low investment returns. Total revenue rose 1% to $2.08 billion, service revenue grew 4% to $2.01 billion, and interest on funds held for clients fell to $75.5 million from $131.8 million. Operating income declined 3% to $805.2 million and net income fell 7% to $533.5 million, or $1.48 per diluted share. Operating income net of certain items, a non-GAAP measure, rose 5% to $729.7 million. Client count fell 3.1% during the year, to roughly 554,000 from 572,000, and client retention was about 77%, slightly below historical levels. Management cited lower new business starts, more clients going out of business, and pricing pressure. Human Resource Services revenue grew 11% to $523.6 million, led by health and benefits services and comprehensive human resource outsourcing, while payroll service revenue rose only 1% to $1.5 billion. The balance sheet remained conservative, with $574.7 million in cash and total corporate investments and no debt as of May 31, 2009. Cash flow from operations was $688.8 million, and dividends of $447.7 million represented 84% of net income. The filing also notes a $20.4 million litigation reserve and an appeal of a $26.0 million jury verdict in the Brunskill Associates case against subsidiary Rapid Payroll. The company's outlook for fiscal 2010 projects lower total revenue (down 1% to 4%) and lower net income (down 10% to 12%), driven by declining interest income on client funds and investments.
Jul 20, 2009
2008
Paychex Annual Report, Year Ended May 31, 2008
Paychex, Inc. (NASDAQ: PAYX) reports its fiscal 2008 results for the year ended May 31, 2008. Total revenue rose 10% to $2.07 billion, service revenue reached $1.93 billion, and operating income increased 18% to $828.3 million. Net income grew 12% to $576.1 million, and diluted earnings per share increased 16% to $1.56. The company describes this as its eighteenth consecutive year of record total revenue, net income, and diluted earnings per share. Payroll service revenue increased 8% to $1.5 billion, while Human Resource Services revenue increased 19% to $471.8 million. The filing attributes weaker results in part to a weakening economy and declining interest rates. The Federal Funds rate fell 325 basis points to 2.00% by May 31, 2008, and interest on funds held for clients decreased 2% to $131.8 million. Combined interest on funds held for clients and investment income, net, decreased 10%. Client base growth slowed to 2.0%, with approximately 572,000 clients at year-end. The company completed a $1.0 billion stock repurchase program in December 2007, repurchasing 23.7 million shares, and dividends paid totaled $442 million. The filing also discloses litigation from the Rapid Payroll licensee matters. A jury verdict in one remaining licensee case awarded $15.0 million in compensatory damages and an additional $11.0 million in punitive damages, which the company is appealing. The company maintains a litigation reserve of $23.0 million and management believes resolution will not have a material adverse effect. Management's fiscal 2009 outlook projects total revenue growth of 7% to 9% and net income growth of 2% to 4%.
Jul 18, 2008
2007
Paychex Annual Report, Year Ended May 31, 2007
Paychex, Inc. reported fiscal 2007 (year ended May 31, 2007) as a record year: total revenue rose 13% to $1.9 billion ($1,886,964 thousand), net income rose 11% to $515.4 million, and diluted earnings per share were $1.35. Service revenue grew 11% to $1,752.9 million, led by Human Resource Services revenue, which rose 22% to $396.2 million. Interest on funds held for clients increased 33% to $134.1 million, and the average combined rate earned on funds held for clients and corporate investments rose to 4.0% from 3.2%. The company served approximately 561,000 clients as of May 31, 2007, and reported client retention at a record level of slightly more than 80%. Profitability was affected by a $38.0 million expense charge to increase the litigation reserve, mainly tied to the Rapid Payroll licensee disputes, and $25.7 million of stock-based compensation expense from the adoption of SFAS No. 123(R). Operating income rose 8% to $701.5 million, and operating income excluding interest on funds held for clients, stock-based compensation, and the litigation charge rose 15% to $631.1 million. The company reported total debt of zero, and cash flow from operations rose 11% to $631.2 million. The filing discloses that a California jury awarded a Rapid Payroll licensee $15.0 million in compensatory damages and $11.0 million in punitive damages on June 27, 2007, which the company intends to contest, while the total litigation reserve stood at $32.5 million. Looking ahead, management projected fiscal 2008 total revenue growth of 11% to 13% and net income growth of 18% to 20%. In July 2007 the company declared a quarterly dividend of $0.30 per share, a 43% increase from $0.21, and announced its intention to repurchase up to $1.0 billion of common stock.
Jul 20, 2007
2006-A
Paychex Annual Report (Amendment), Year Ended May 31, 2006
This filing is Amendment No. 1 on Form 10-K/A to Paychex, Inc.'s Annual Report for the fiscal year ended May 31, 2006, filed September 8, 2006. The Original Filing was made with the SEC on July 21, 2006. The sole purpose of the amendment is to update certain disclosures regarding maximum incentives under the Paychex, Inc. Officer Performance Incentive Program for the Year Ending May 31, 2007, which was originally filed as Exhibit 10(o) to the Original Filing. The amendment does not reflect developments since the Original Filing and does not amend or update any financial statements or other disclosures in it, which are incorporated by reference. The filing includes the amended incentive program exhibit, Section 302 and Section 906 Sarbanes-Oxley certifications, and signatures from the President and CEO Jonathan J. Judge, the CFO John M. Morphy, and the board of directors. The company reports as a Delaware corporation with common stock traded on the NASDAQ Stock Market, with 380,333,725 shares outstanding as of June 30, 2006. Its non-affiliate market value was $14,387,643,144 as of November 30, 2005. The company is a large accelerated filer, and Part III information is incorporated by reference from the definitive proxy statement for the October 5, 2006 Annual Meeting of Stockholders. For investors, this amendment contains no new financial results, operating metrics, or risk disclosures. Its relevance is limited to the updated maximum incentive terms in the officer compensation program, and the financial information for fiscal 2006 must be taken from the Original Filing.
Sep 8, 2006
2006
Paychex Annual Report, Year Ended May 31, 2006
Paychex, Inc. reported fiscal 2006 (year ended May 31, 2006) as a record year: total revenue rose 16% to $1,674.6 million, net income increased 26% to $464.9 million, and diluted earnings per share were $1.22, up 26%. Service revenue grew 14% to $1,573.8 million, driven by growth in clients (approximately 543,000 at May 31, 2006), check volume, and ancillary services. Payroll service revenue increased 10% to $1,248.9 million and Human Resource Services revenue increased 29% to $324.9 million. The company noted that interest on funds held for clients rose as interest rates increased; the average combined portfolio yield rose to 3.2% from 2.2% in fiscal 2005. Operating income grew 22% to $649.6 million, and cash flow from operations rose 22% to $569.2 million. Paychex paid $231.5 million in dividends, equal to 50% of net income, and the quarterly dividend was raised to $0.16 per share. The company carries no debt, and its total assets were $5.55 billion against stockholders' equity of $1.65 billion at May 31, 2006. Management's fiscal 2007 outlook projects total revenue growth of 12% to 14% and net income growth of 12% to 14%. The filing notes that adopting SFAS No. 123(R) on June 1, 2006 is expected to reduce net income by 4% to 5% in fiscal 2007. Key risks include errors in processing client funds, client insolvency, regulatory changes, and a pending Rapid Payroll software licensee litigation matter for which the company holds a $15.6 million legal reserve.
Jul 21, 2006
2005
Paychex Annual Report, Year Ended May 31, 2005
Paychex, Inc. reported record fiscal 2005 results for the year ended May 31, 2005, its fifteenth consecutive year of record total revenues, net income, and diluted earnings per share. Total revenues increased 12% to $1,445.1 million, service revenues rose 12% to $1,384.7 million, and net income increased 22% to $368.8 million, or $0.97 diluted earnings per share, compared with $0.80 in fiscal 2004. Operating income grew 23% to $533.8 million, though fiscal 2004 included a $35.8 million expense charge for pending legal matters, and fiscal 2005 included $3.2 million of captive insurance charges. Cash flow from operations was $467.9 million, and the company had $707.6 million in cash and corporate investments at May 31, 2005, with no debt. Client growth continued, with approximately 522,000 clients at May 31, 2005, up from about 505,000 a year earlier. Client retention was slightly less than 80% of the beginning base, and tax filing and payment services were used by 90% of clients. Management's outlook for fiscal 2006 projects total revenue growth of 11% to 12% and net income growth of 18% to 20%, with an expected effective tax rate of about 31.5%. The main risk identified is litigation arising from Rapid Payroll, Inc., a wholly owned subsidiary, whose licensees sued over its decision to stop supporting payroll software. The company held a $25.3 million legal reserve at May 31, 2005, and had settled thirteen cases for approximately $8.0 million through June 27, 2005. Management believes resolution will not have a material adverse effect given the reserve.
Jul 22, 2005
2004
Paychex Annual Report, Year Ended May 31, 2004
Paychex, Inc. reported fiscal 2004 (year ended May 31, 2004) as its fourteenth consecutive year of record total revenues, net income, and diluted earnings per share. Total revenues grew 18% year-over-year to $1,294.3 million, net income rose 3% to $303.0 million, and diluted earnings per share were $.80. Operating income increased 8% to $433.3 million. Service revenues were $1,240.1 million, and the company served approximately 505,000 clients at May 31, 2004, with approximately 9,400 employees. Results were affected by $35.8 million in expense charges to increase the reserve for pending legal matters, mainly related to lawsuits against subsidiary Rapid Payroll, Inc. by licensees of its payroll software. A June 18, 2004 jury awarded approximately $6.4 million in compensatory damages to Payroll Partnership, L.P. and related entities, and the legal reserve stood at $35.0 million at May 31, 2004. The company also recorded approximately $6.4 million of net incremental PEO revenue, which the filing says reduced diluted earnings per share impact from the legal charges by roughly $.06 net of the legal reserve charge. The balance sheet remained debt-free, with total assets of $3.95 billion and stockholders' equity of $1.20 billion. Cash and corporate investments totaled $523.8 million, and operating cash flow was $390.1 million. The company guided fiscal 2005 total revenue growth of 9% to 11% and net income growth of 16% to 18%, based on current economic and interest rate conditions.
Jul 20, 2004
2003
Paychex Annual Report, Year Ended May 31, 2003
Paychex, Inc. reported record fiscal 2003 (year ended May 31, 2003) results, with total revenues of $1.10 billion, up from $954.9 million in fiscal 2002, and net income of $293.5 million, up from $274.5 million. Diluted earnings per share were $.78 versus $.73. Service revenues reached $1.05 billion, while interest on funds held for clients fell to $53.1 million from $62.7 million, reflecting lower interest rates. Operating income was $401.0 million. The filing states the company completed its thirteenth consecutive year of record total revenues and net income, and that lower interest rates and difficult economic conditions continued to weigh on growth. The company spent $492.6 million in cash on acquisitions during the year: Advantage Payroll Services, Inc. for $314.4 million (September 20, 2002) and InterPay, Inc., a subsidiary of FleetBoston Financial Corporation, for $181.7 million (April 1, 2003). Together they added over 82,000 clients, bringing the total to approximately 490,000 clients and about 8,850 employees. The filing notes goodwill of $393.7 million and that the integration of both acquisitions is ongoing. Total assets rose to $3.69 billion, and stockholders' equity to $1.08 billion. The company had no debt outstanding. For fiscal 2004, management projects total service revenue growth of 16% to 18%, net income growth of approximately 10%, and operating income growth (excluding interest on funds held for clients) of 15% to 20%. The filing also discloses 27 pending lawsuits brought by licensees of Rapid Payroll, Inc. software, which management believes will not have a material adverse effect.
Aug 1, 2003
2002
Paychex Annual Report, Year Ended May 31, 2002
Paychex, Inc. reported fiscal 2002 (year ended May 31, 2002) total revenues of $954.9 million, up from $869.9 million in fiscal 2001, and net income of $274.5 million, up from $254.9 million. Diluted earnings per share were $.73, compared with $.68 in fiscal 2001. Service revenues rose to $892.2 million, led by Payroll service revenues of $770.2 million and Human Resource and Benefits service revenues of $121.9 million. Interest on funds held for clients declined to $62.7 million from $83.3 million, which management attributes primarily to lower interest rates. The company describes fiscal 2002 as its twelfth consecutive year of record total revenues and net income, and it attributes the results partly to recessionary economic conditions and lower interest rates. The company serviced over 390,000 clients and had approximately 7,400 employees at May 31, 2002. Checks per client declined 3.7% for the year, and the Taxpay product was used by 85% of clients. The company's balance sheet carried no debt, and stockholders' equity rose to $923.98 million. Net cash provided by operating activities was $303.8 million, and dividends paid totaled $157.5 million, or $.42 per share declared for the year. Management projects fiscal 2003 total revenue growth of 8% to 10% and expects net income growth approximating or slightly below revenue growth. The filing highlights exposure to interest rate changes, since interest on client funds is a substantial part of total revenue, and to the possibility of client funds shortfalls and service errors. Management believes the company's pending legal claims will not have a material adverse effect on its financial position or results of operations.
Jul 22, 2002
2001
Paychex Annual Report, Year Ended May 31, 2001
Paychex, Inc. filed its Form 10-K for the fiscal year ended May 31, 2001, describing itself as a leading national provider of comprehensive payroll, human resource and employee benefit outsourcing solutions for small- to medium-sized businesses, serving over 375,000 clients with 7,300 employees. Fiscal 2001 total revenues rose 19.5% to $869.9 million, operating income grew 30.1% to $336.7 million, and net income increased 34.1% to $254.9 million, or $.68 per diluted share. The company marked its eleventh consecutive year of record service revenues and net income and its tenth consecutive year of net income growth of 30% or more. The balance sheet remained conservative, with no debt outstanding, corporate cash and investments of $614 million, and cash flow from operations of $304.9 million. Dividends paid rose to $123.1 million, reflecting a 50% increase in the quarterly dividend rate, and return on stockholders' equity was 37.9%. Revenue from interest on funds held for clients rose 41.7% to $83.3 million, benefiting from higher rates and realized gains, but management stated that falling Federal Funds rates (down 2.50 percentage points during the third and fourth quarters) will reduce interest income in fiscal 2002. Management guided for fiscal 2002 total revenue growth of 16% to 18%, with effective income tax rate expected near 31.0% and interest-related earnings expected to grow more slowly. Growth drivers highlighted include the Paychex Administrative Services bundled product, which was made available nationwide in May 2000, Major Market Services payroll, 401(k) recordkeeping, and Internet-based services.
Aug 24, 2001
2000
Paychex Annual Report, Year Ended May 31, 2000
Paychex, Inc. reported record results for the fiscal year ended May 31, 2000, marking the tenth consecutive year of record service revenues and net income. Service revenues rose 21.9% to $728.1 million, operating income increased 38.0% to $258.9 million, and net income grew 36.6% to $190.0 million, or $.51 per diluted share. Operating margin expanded to 35.6% from 31.4%, and net income was 26.1% of service revenues. Results were driven by growth in payroll clients, which reached 351,900, and by increased use of ancillary services such as Taxpay, where 81% of payroll clients participated, and Employee Pay Services, used by 47%. The Payroll segment generated $653.2 million in service revenue and $303.4 million in operating income, with a 46.4% operating margin. Investment revenue earned on ENS investments, which hold client tax and payroll funds, was $58.8 million and is included in Payroll service revenue. The HRS-PEO segment grew service revenue 43.9% to $74.9 million and operating income 111.3% to $23.4 million. Management expects fiscal 2001 Payroll revenue growth toward the upper end of an 18% to 20% range. The balance sheet remained conservative, with total assets of $2.46 billion, stockholders' equity of $563.4 million, and no debt outstanding. Cash and investments totaled $459 million, and operating cash flow was $249.0 million. The company paid cash dividends of $.22 per share and completed a three-for-two stock split in May 2000.
Aug 28, 2000
1999
Paychex Annual Report, Year Ended May 31, 1999
Paychex, Inc. reported results for the fiscal year ended May 31, 1999, with service revenues of $597,296 thousand (up 21.0% from $493,704 thousand in 1998) and net income of $139,099 thousand (up 36.1% from $102,219 thousand). Diluted earnings per share were $.56, up 36.6%. The Payroll segment generated $545,249 thousand in service revenue (up 19.8%) and operating income of $235,710 thousand (up 30.8%), while the HRS-PEO segment reported service revenue of $52,047 thousand (up 35.3%) and operating income of $12,598 thousand (up 89.7%). The filing describes 1999 as the ninth consecutive year of record service revenues and net income. The company's client base grew to 322,600 payroll clients, and management cited growth in ancillary services such as TAXPAY (used by 79% of payroll clients), Direct Deposit (42% client utilization), and 401(k) recordkeeping, which served 10,100 clients. Operating cash flow was $174,120 thousand, and at year-end the company held $343.2 million in available cash and investments plus $297.5 million of undrawn lines of credit. Management expects fiscal 2000 Payroll revenue growth within a 17% to 19% long-term historical range and an effective tax rate of 30.5% to 31.0%. The company's investment portfolio is concentrated in high-credit-quality, tax-exempt municipal and government securities, with a weighted-average yield to maturity of 4.10% and an estimated fair value decrease of approximately $16.2 million from a hypothetical 75 basis point rate increase. Year 2000 remediation costs were estimated at approximately $5 million, with about 80% spent through May 31, 1999. The company reported no material pending legal proceedings.
Aug 27, 1999
1998
Paychex Annual Report, Year Ended May 31, 1998
Paychex, Inc. reported record results for the fiscal year ended May 31, 1998, its eighth consecutive year of record revenues and net income. Service revenues rose to $493,704 thousand (up 23.5%), operating income to $134,700 thousand (up 39.4%), and net income to $102,219 thousand (up 36.0%). Basic earnings per share were $.63 and diluted earnings per share were $.62. The Payroll segment generated $455,227 thousand in service revenue and $180,265 thousand in operating income, with 293,600 payroll clients at year end. The HRS-PEO segment's service revenue reached $38,477 thousand, with 6,000 401(k) clients, 16,400 Section 125 clients, and 19,200 PEO worksite employees. Management attributed part of the revenue growth to the IRS EFTPS mandate, which accelerated Taxpay client growth but reduced tax-exempt investment revenue in fiscal 1998. The balance sheet at May 31, 1998 showed total assets of $1,549,787 thousand, including $1,154,501 thousand of Electronic Network Services (ENS) investments offset by ENS client deposits. Stockholders' equity was $329,607 thousand. The company had $250.5 million in available cash and investments and $262.5 million in unused lines of credit, with no amounts outstanding. Operating cash flow was $136,761 thousand. Management expects fiscal 1999 Payroll revenue growth to approximate fiscal 1997's rate as EFTPS benefits diminish, an effective tax rate of 29.5% to 30.0%, and purchases of property and equipment of about $30 million. The company reported no pending material legal proceedings and estimated year 2000 compliance expenditures of approximately $5 million, with internal mission-critical systems targeted for compliance by the end of calendar 1998. Its market risk disclosure states that a hypothetical 75 basis point rise in interest rates would reduce the fair value of its $654.5 million available-for-sale portfolio by approximately $13.4 million, or about 2.0%.
Aug 27, 1998
1997
Paychex Annual Report, Year Ended May 31, 1997
Paychex, Inc. (NASDAQ: PAYX) reported record results for the fiscal year ended May 31, 1997, its seventh consecutive year of record revenues and net income. Total revenue rose to $734.7 million from $566.4 million in fiscal 1996, operating income reached $96.6 million, and net income was $75.2 million, or $.70 per share, compared with $55.0 million, or $.51 per share, a year earlier. The company operates two segments: Payroll, which generated $368.9 million in service revenue and serves over 262,000 small- and medium-sized business clients, and HRS-PEO, which provides 401(k) recordkeeping, benefits and professional employer organization services. The HRS-PEO segment's total revenue of $365.8 million includes $335.0 million of pass-through PEO direct costs billed, so its operating income of $4.5 million is the more meaningful measure of that segment's profitability. Balance sheet size grew sharply, with total assets of $1.20 billion versus $831.6 million, driven largely by Electronic Network Services (ENS) investments of $896.6 million and matching client deposits of $896.1 million tied to the Taxpay and Direct Deposit products. Stockholders' equity increased to $251.5 million, and the company had no debt outstanding and $262.5 million of unused lines of credit at May 31, 1997. Management expects continued growth in revenue, client base and net income in fiscal 1998, though it also flagged an approximately $3 million revenue reduction from an IRS Electronic Funds Transfer requirement effective July 1, 1997, and a higher expected effective tax rate of 28.5% to 29.5%. The filing states that there are no material pending legal proceedings. Management also said the Year 2000 conversion effort is not expected to be material in cost or effect on results. The company's share repurchase history is not discussed, but its stock traded between $25.50 and $42.38 during fiscal 1997 following three-for-two stock splits in May 1997 and May 1996.
Aug 15, 1997
1996
Paychex Annual Report, Year Ended May 31, 1996
Paychex, Inc. reported record fiscal 1996 results for the year ended May 31, 1996, its sixth consecutive year of record revenues and net income. Revenue rose 21.7% to $325.3 million, operating income reached $67.5 million, and net income was $52.3 million, or $.77 per share, compared with $39.0 million in fiscal 1995. The company served over 234,000 small and medium-sized business clients, and the filing states it believes it is the second largest payroll accounting service company in the country by number of clients. Management attributed growth to client growth in basic payroll service, increased use of the TAXPAY product (used by 56% of clients, up from 51% in 1995), and ancillary products such as Direct Deposit and Human Resource Services. Balance sheet strength was notable: stockholders' equity rose to $190.8 million, long-term debt was fully repaid, and the company had $200 million of unsecured bank lines of credit with no borrowings outstanding at May 31, 1996. Net cash from operating activities was $59.9 million, and capital expenditures were $17.3 million. The quarterly dividend was increased to $.06 per share during the second quarter, bringing the annual dividend to $.22 per share. The company agreed on June 25, 1996 to merge with National Business Solutions, Inc. (NBS), a professional employer organization, in a pooling-of-interests transaction in which NBS stockholders would receive approximately 3 million Paychex shares valued at $140 million. NBS generated approximately $240 million in revenue for the twelve months ended May 31, 1996. The filing states the merger is pending favorable judgment on Hart-Scott-Rodino Act filings and Florida approvals, and that the company does not anticipate a dilutive effect on future earnings.
Aug 14, 1996
1995
Paychex Annual Report, Year Ended May 31, 1995
Paychex, Inc. (Rochester, New York) filed this Form 10-K for the fiscal year ended May 31, 1995. The company provides computerized payroll accounting services to approximately 208,000 small and medium-sized businesses nationwide, and states it believes it is the second largest payroll accounting service company in the country by number of clients. Its services include paychecks and payroll records, Taxpay automatic tax payment and filing (used by over 50% of clients), Direct Deposit, check signing and inserting, and the Paylink PC-based data entry product. Its Human Resource Services division offers Section 125 cafeteria plans, employee handbooks and, newly in 1995, 401(k) recordkeeping. Financially, revenue rose to $267,176 thousand in 1995 from $224,052 thousand in 1994 and $190,032 thousand in 1993. Operating income reached $51,011 thousand, up from $36,783 thousand, and net income was $39,040 thousand, or $.87 per share, compared with $28,070 thousand, or $.63 per share, in 1994. Operating costs fell to 29% of revenue and selling, general and administrative expenses to 51%. Total assets were $168,437 thousand and stockholders' equity was $139,932 thousand at May 31, 1995. Net cash provided by operating activities was $48,147 thousand. Capital expenditures for fiscal 1996 are expected to be between $17,000,000 and $20,000,000. The company reported no outstanding borrowings under its $200,000,000 of unsecured bank lines of credit and stated there were no material pending legal proceedings. In June 1995 it completed a pooling-of-interests merger with Pay-Fone Systems, Inc., issuing approximately 357,000 shares, which the company said would not significantly affect fiscal 1996 results. The quarterly dividend was raised to $.06 per share during fiscal 1995, and a three-for-two stock split was distributed May 25, 1995.
Aug 18, 1995