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PAYX · Paychex

50 filings

10-Q

PAYX 10-Q Quarterly Reports

Paychex - 50 quarterly reports

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

PAYX filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 99 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’17Jul ’17
  2. Material agreement8-K · Aug ’19Aug ’19
  3. Material agreement8-K · Sep ’21Sep ’21
  4. Leadership change8-K · Jul ’25Jul ’25
  1. 2027-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2026

    Paychex, Inc. reported total revenue of $1,630.5 million for the first quarter ended August 31, 2026, up from $1,540.0 million in the prior year period. Total service revenue was $1,580.7 million, with Management Solutions at $1,213.1 million (versus $1,163.3 million) and PEO and Insurance Solutions at $367.6 million (versus $329.1 million). Operating income rose to $619.2 million from $541.9 million, and net income increased to $429.7 million from $383.8 million. Diluted earnings per share were $1.21 compared with $1.06 a year earlier. Adjusted diluted earnings per share, a non-GAAP measure, were $1.34 versus $1.22. Cash flow from operations was $413.5 million, down from $718.4 million in the prior year period. Cash and cash equivalents fell to $600.9 million from $1,088.2 million at May 31, 2026, while corporate investments rose to $333.3 million from $36.3 million. Long-term borrowings were $4,558.0 million, and the company reported $2.0 billion of unused credit facility capacity. Dividends paid were $424.1 million, or $1.19 per share declared. The company repurchased no shares in the quarter and had $675.6 million remaining under its $1.0 billion repurchase program. The filing reports net unrealized losses of $92.4 million on available-for-sale securities as of August 31, 2026, versus $52.5 million at May 31, 2026. The Federal Reserve raised the Federal Funds rate to a range of 3.75% to 4.00% effective September 17, 2026. Management states that disclosure controls were effective and that there were no material changes in internal control over financial reporting during the quarter.

    Sep 24, 2026
  2. 2026-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2026

    Paychex, Inc. reported third-quarter fiscal 2026 results for the three months ended February 28, 2026, with total revenue of $1.81 billion, up from $1.51 billion, and net income of $560.3 million, compared with $519.3 million in the prior-year quarter. Diluted earnings per share were $1.56, versus $1.43. For the nine months, total revenue was $4.91 billion (versus $4.14 billion) and net income was $1.34 billion, down from $1.36 billion, with diluted EPS of $3.71 versus $3.76. Management attributes much of the revenue growth to the Paycor acquisition completed on April 14, 2025, which contributed approximately 19% and 18% to Management Solutions revenue growth for the third quarter and nine months, respectively. Operating income rose to $792.0 million for the quarter, while interest expense increased to $68.1 million from $22.6 million, reflecting debt issued to finance Paycor. The filing also reports adjusted operating income of $863.2 million and adjusted diluted EPS of $1.71 for the quarter; these are non-GAAP measures. Balance sheet and liquidity remained substantial. Cash and cash equivalents were $1.74 billion, long-term borrowings totaled $4.55 billion net of current portion, and the company reported $2.0 billion of unused credit facility capacity as of February 28, 2026. Operating cash flow for the nine months was $1.98 billion, against $1.56 billion a year earlier. Shareholders received $1.17 billion in dividends over the nine months, and the company repurchased $361.6 million of common stock. In January 2026 the Board approved a new $1.0 billion repurchase program with no expiration date. Subsequent to quarter-end, the company repaid $400.0 million of Senior Notes, Series A that matured on March 13, 2026.

    Mar 26, 2026
  3. 2026-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2025

    Paychex, Inc. reported results for the second quarter and six months ended November 30, 2025. Total revenue rose to $1,557.6 million for the quarter, up from $1,316.9 million, and to $3,097.6 million for the six months, up from $2,635.4 million, with the filing citing 18% growth for both periods. Management Solutions revenue grew 21% for both periods, and the filing attributes about 17% of that growth to Paycor, acquired April 14, 2025. Net income was $395.4 million for the quarter versus $413.4 million a year earlier, and diluted EPS was $1.10 versus $1.14. Operating income rose 6% to $571.9 million, while interest expense increased to $68.5 million for the quarter, primarily from debt issued to finance the Paycor acquisition. The filing also presents adjusted, non-GAAP measures. Adjusted diluted EPS was $1.26 for the quarter, up 11%, and $2.48 for the six months, up 8%. These exclude acquisition-related costs of $77.1 million for the quarter and $161.9 million for the six months, including $121.0 million of intangible amortization for the six months. Cash flow from operations was $1,163.3 million for the six months, compared with $841.1 million a year earlier. Dividends paid were $777.0 million, and share repurchases totaled $286.6 million. At November 30, 2025, total assets were $16,518.9 million, long-term borrowings were $4,552.2 million, and stockholders' equity was $3,880.1 million. The company had about $2.0 billion of unused credit facility capacity. The filing notes that the Federal Reserve lowered the Federal Funds rate to a range of 3.50% to 3.75% effective December 11, 2025.

    Dec 22, 2025
  4. 2026-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2025

    Paychex, Inc. (PAYX) reported first-quarter fiscal 2026 results for the three months ended August 31, 2025. Total revenue rose to $1,540.0 million from $1,318.5 million, with Management Solutions revenue of $1,163.3 million (up from $961.7 million) and PEO and Insurance Solutions revenue of $329.1 million (up from $319.3 million). The filing attributes the Management Solutions growth in part to the acquisition of Paycor HCM, Inc., completed April 14, 2025, which the company says contributed approximately 17% to Management Solutions revenue growth year-over-year. Profitability was pressured by acquisition-related costs and higher interest expense. Operating income declined to $541.9 million from $546.7 million, while total expenses rose to $998.1 million from $771.8 million; the filing records $84.1 million of Paycor acquisition-related costs in selling, general and administrative expenses. Interest expense increased to $68.2 million from $9.6 million, reflecting debt issued to finance the acquisition. Net income fell to $383.8 million from $427.4 million, and diluted earnings per share were $1.06 versus $1.18. Adjusted operating income, a non-GAAP measure, grew to $626.7 million, and adjusted diluted earnings per share were $1.22 versus $1.16. The balance sheet shows cash and cash equivalents of $809.0 million, down from $1,628.6 million at May 31, 2025, while corporate investments rose to $861.9 million from $34.5 million. Long-term borrowings were $4,550.3 million, and total stockholders' equity was $3,970.6 million. Operating cash flow was $718.4 million, and the company paid $389.1 million in dividends ($1.08 per share declared) and repurchased $160.1 million of common stock. Goodwill of $4,523.6 million and intangible assets of $1,886.8 million reflect the Paycor acquisition.

    Sep 30, 2025
  5. 2025-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2025

    Paychex, Inc. reported third-quarter fiscal 2025 results for the three months ended February 28, 2025, with total revenue of $1.51 billion (up 5% from the prior year period) and net income of $519.3 million, compared with $498.6 million a year earlier. For the nine months, total revenue was $4.14 billion, up 4%, and net income was $1.36 billion, up 4%. Operating income rose 6% to $691.8 million for the quarter, and diluted earnings per share were $1.43 versus $1.38. The company attributes revenue growth to client growth and price realization in Management Solutions, growth in average PEO worksite employees, and higher PEO insurance revenue, partly offset by the expiration of the Employee Retention Tax Credit program. Adjusted diluted EPS, a non-GAAP measure, was $1.49 for the quarter after excluding $16.7 million of acquisition-related costs and $13.2 million of related financing and swaption costs recorded in other expense. The filing is dominated by the pending acquisition of Paycor HCM, Inc. for $22.50 per eligible share in cash, representing an enterprise value of approximately $4.1 billion. The Hart-Scott-Rodino waiting period expired on February 21, 2025, and the deal is expected to close in April 2025 subject to customary conditions. Paychex has a $3.5 billion bridge loan commitment from JPMorgan Chase Bank, N.A. and executed three interest rate swaption contracts with a $3.0 billion aggregate notional amount to hedge anticipated long-term fixed-rate debt issuance. No bridge borrowings had been drawn as of February 28, 2025. Balance-sheet liquidity remained substantial: cash and cash equivalents were $1.56 billion, and the company had about $2.0 billion of unused credit facility capacity, with $17.6 million of short-term borrowings outstanding. Long-term borrowings were $799.0 million. Cash dividends declared were $0.98 per share in the quarter and $2.94 per share for the nine months, and $296.0 million remained available under the share repurchase program, with no shares repurchased in the quarter.

    Mar 26, 2025
  6. 2025-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2024

    Paychex, Inc. reported results for the second quarter and six months ended November 30, 2024. Total revenue rose to $1,316.9 million for the quarter, up 5%, and $2,635.4 million for the six months, up 4%. Management states that excluding the expiration of the Employee Retention Tax Credit ("ERTC") program, revenue growth was 7% for the quarter and 6% for the six months. Operating income increased 6% to $538.1 million for the quarter and 4% to $1,084.8 million for the six months, and net income was $413.4 million for the quarter, up 5%, and $840.8 million for the six months, up 4%. Diluted earnings per share were $1.14 for the quarter, up 6%, and $2.32 for the six months, up 4%. Management notes that operating income in both periods was impacted by the ERTC expiration. Growth was driven by Management Solutions revenue of $962.9 million for the quarter (up 3%) and PEO and Insurance Solutions revenue of $317.9 million (up 7%), with PEO direct insurance costs rising 17% for the quarter as worksite employee counts and PEO insurance revenues grew. Interest on funds held for clients rose 15% to $36.1 million for the quarter, primarily due to higher average interest rates and investment balances. Other income, net declined to $5.6 million for the quarter from $11.7 million a year earlier, reflecting lower average interest rates on corporate investments and lower balances. Cash flow and liquidity remained solid. Net cash provided by operating activities was $841.1 million for the six months, down from $1,004.3 million, mainly due to changes in prepaid income taxes, PEO assets and liabilities, and accrued corporate compensation. Dividends paid totaled $706.2 million for the six months, with dividends declared at $1.96 per share. Unused capacity under credit facilities was approximately $2.0 billion, and long-term borrowings were $800.0 million. Net unrealized losses on available-for-sale securities were $85.9 million as of November 30, 2024, improved from $162.5 million at May 31, 2024.

    Dec 19, 2024
  7. 2025-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2024

    Paychex, Inc. reported results for the first quarter ended August 31, 2024 in this Form 10-Q. Total revenue was $1.32 billion ($1,318.5 million), up 3% from $1,286.0 million in the prior year period. Total service revenue rose 2% to $1,281.0 million, with Management Solutions at $961.7 million (up 1%) and PEO and Insurance Solutions at $319.3 million (up 7%). Interest on funds held for clients rose 15% to $37.5 million. The company stated that excluding the expiration of the Employee Retention Tax Credit (ERTC) program and one less payroll processing day, revenue growth was 7%. Profitability grew more modestly. Operating income increased 2% to $546.7 million, with operating margin of 41.5% versus 41.7% a year earlier. Net income rose 2% to $427.4 million and diluted EPS was $1.18 versus $1.16. Adjusted diluted EPS, a non-GAAP measure, was $1.16. Net cash provided by operating activities fell to $546.1 million from $693.0 million. The company paid $353.4 million in dividends ($0.98 per share) and repurchased 0.8 million shares for $104.0 million at an average of $125.50 per share during the quarter. The balance sheet shows total assets of $10.49 billion and stockholders' equity of $3.85 billion as of August 31, 2024. Short-term borrowings were $18.9 million and long-term borrowings were $798.7 million, with approximately $2.0 billion of unused credit facility capacity. Management stated that AFS securities with unrealized losses were not impaired due to credit risk, and that unrealized losses on the investment portfolio narrowed to $80.4 million from $162.5 million at May 31, 2024.

    Oct 1, 2024
  8. 2024-Q3

    Paychex Quarterly Report for Q3 Ended Feb 29, 2024

    Paychex, Inc. reported results for the third quarter and nine months ended February 29, 2024. Total revenue for the quarter was $1,439.3 million versus $1,381.0 million in the prior-year quarter, with Management Solutions revenue of $1,049.9 million and PEO and Insurance Solutions revenue of $345.5 million. Operating income rose to $649.8 million from $611.9 million, and net income was $498.6 million, or $1.38 diluted earnings per share, compared with $467.4 million and $1.29 a year earlier. For the nine months, total revenue was $3,983.2 million, operating income was $1,692.3 million, and net income was $1,310.5 million, or $3.62 diluted earnings per share. Interest on funds held for clients rose to $108.1 million for the nine months from $74.9 million, which the filing attributes primarily to higher average interest rates. Cash flow from operations for the nine months was $1,676.0 million, compared with $1,288.8 million a year earlier. During the period the company repurchased 1.5 million common shares at a weighted average price of $115.37 per share, for $169.2 million in total, and paid dividends of $962.5 million. The company acquired Alterna Capital Solutions LLC effective July 31, 2023, with consideration of $95.1 million plus settlement of $128.9 million in debt, net of cash acquired. Cash, restricted cash and total corporate investments stood at $1.8 billion as of February 29, 2024. Total short-term and long-term borrowings were $817.3 million, and the company reported no overnight borrowings under its credit facilities after the quarter end. The filing shows net unrealized losses of $161.9 million on available-for-sale securities, with $3.3 billion of AFS securities at fair value. The company's board approved a new repurchase program of up to $400.0 million, expiring May 31, 2027, and the company stated that no shares were repurchased during the third quarter.

    Apr 2, 2024
  9. 2024-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2023

    Paychex, Inc. reported results for the second quarter and six months ended November 30, 2023 in this Form 10-Q. Total revenue rose to $1,257.9 million for the quarter from $1,190.3 million a year earlier, and to $2,543.9 million for the six months from $2,396.5 million. Management Solutions revenue was $930.7 million for the quarter and PEO and Insurance Solutions revenue was $295.7 million, while interest on funds held for clients increased to $31.5 million from $21.7 million. Operating income was $506.2 million for the quarter and $1,042.5 million for the six months, and net income was $392.7 million and $811.9 million, respectively. Diluted earnings per share were $1.08 for the quarter and $2.24 for the six months. The balance sheet expanded substantially over the period. Total assets were $12,052.1 million at November 30, 2023, up from $10,546.4 million at May 31, 2023, driven largely by funds held for clients of $5,439.7 million and client fund obligations of $5,626.8 million. Cash and cash equivalents were $1,363.1 million, and total stockholders' equity was $3,524.4 million. Net cash provided by operating activities was $1,004.3 million for the six months, compared with $719.7 million a year earlier. The company acquired Alterna Capital Solutions LLC effective July 31, 2023, and the filing describes that acquisition as not material to results, financial position, or cash flows. Capital returns continued during the period. Dividends declared totaled $1.78 per share for the six months, and the company repurchased 1.5 million shares for $169.2 million under a $400.0 million program expiring January 31, 2024. The filing also notes unrealized losses of $187.2 million on available-for-sale securities as of November 30, 2023, and states that the company believes these losses reflect interest rate changes rather than credit concerns.

    Dec 21, 2023
  10. 2024-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2023

    Paychex, Inc. reported results for the first quarter ended August 31, 2023 (fiscal 2024 Q1). Total revenue rose to $1,286.0 million from $1,206.2 million, up 7%, while total service revenue grew 5% to $1,253.3 million. Management Solutions revenue increased 6% to $955.5 million and PEO and Insurance Solutions revenue increased 5% to $297.8 million. Interest on funds held for clients rose 83% to $32.7 million, driven by higher average interest rates earned and higher average investment balances. Operating income increased 8% to $536.3 million, with operating margin of 41.7% versus 41.1% in the prior year period. Net income grew 11% to $419.2 million and diluted earnings per share rose 10% to $1.16, compared with $1.05 a year earlier. Adjusted diluted earnings per share, a non-GAAP measure, was $1.14 versus $1.03. Net cash provided by operating activities was $655.8 million, compared with $364.3 million in the prior year period. The company acquired Alterna Capital Solutions LLC effective July 31, 2023, for a base purchase price of $94.8 million plus immediate settlement of debt totaling $128.9 million; the filing describes the acquisition as not material to results, financial position, or cash flows. The balance sheet showed cash and cash equivalents of $1,645.9 million and total assets of $12,200.0 million at August 31, 2023, up from $10,546.4 million at May 31, 2023, largely reflecting increases in funds held for clients and client fund obligations. Net unrealized losses on available-for-sale securities were $206.9 million, and the filing states that no credit impairment was recognized. No shares were repurchased during the quarter, and $327.1 million remained available under the repurchase program. The quarterly dividend increased to $0.89 per share from $0.79 per share.

    Sep 28, 2023
  11. 2023-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2023

    Paychex, Inc. reported third-quarter fiscal 2023 results (three months ended February 28, 2023) in this Form 10-Q. Total revenue rose to $1.38 billion from $1.28 billion, with total service revenue of $1.35 billion, and operating income reached $611.9 million versus $562.8 million a year earlier. Net income was $467.4 million, or $1.29 diluted earnings per share, compared with $430.7 million and $1.19 in the prior-year quarter. For the nine months, total revenue was $3.78 billion, operating income $1.58 billion, and net income $1.21 billion, or $3.33 diluted earnings per share. Management Solutions revenue was $1.02 billion for the quarter and PEO and Insurance Solutions revenue was $321.2 million. Interest on funds held for clients nearly doubled to $35.3 million for the quarter, attributed mainly to higher average interest rates earned. Cash, restricted cash, and total corporate investments totaled $1.6 billion, and total borrowings, net of debt issuance costs, were $808.3 million as of February 28, 2023. Dividends paid for the nine months were $854.1 million. The filing notes that accumulated other comprehensive loss widened to $204.2 million, reflecting net unrealized losses of $230.5 million on available-for-sale securities. It also discloses that the company has no deposits with Silicon Valley Bank or Signature Bank, both closed in March 2023, and that it has not realized any losses from the banking market volatility.

    Mar 30, 2023
  12. 2023-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2022

    Paychex, Inc. reported results for its second quarter of fiscal 2023 (three months ended November 30, 2022) and first six months of fiscal 2023. Total revenue rose to $1,190.3 million for the quarter from $1,108.5 million a year earlier, and to $2,396.5 million for the six months from $2,191.4 million. Management Solutions revenue was $895.3 million for the quarter, up 8%, and PEO and Insurance Solutions revenue was $273.3 million, up 4%. Operating income was $472.3 million for the quarter and $967.9 million for the six months, and net income was $360.3 million for the quarter and $739.5 million for the six months. Diluted earnings per share were $0.99 for the quarter and $2.04 for the six months. The filing also reports interest on funds held for clients rising to $21.7 million for the quarter, up 54%, reflecting higher average interest rates and higher average invested balances. Balance sheet and cash flow data show cash and cash equivalents of $1,096.5 million at November 30, 2022, up from $370.0 million at May 31, 2022, largely because corporate investments fell to $165.6 million from $853.9 million. Net cash provided by operating activities was $685.9 million for the six months. Dividends paid totaled $569.3 million for the six months, and the cumulative dividend per share rose to $1.58 from $1.32. Total borrowings, net of debt issuance costs, were $808.0 million. Net unrealized losses on available-for-sale securities were $217.8 million, reflecting higher interest rates; the filing states that these losses were not due to credit concerns. The filing also notes that no shares were repurchased during the quarter, with $327.1 million remaining under the $400 million repurchase program authorized through January 31, 2024. It states that the Federal Reserve raised the Federal Funds rate to a range of 4.25% to 4.50% effective December 15, 2022, and that management expects cash, restricted cash, and total corporate investments of $1.3 billion, along with operating cash flows and short-term financing, to support operations, capital purchases, share repurchases, and dividends for the foreseeable future.

    Dec 22, 2022
  13. 2023-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2022

    Paychex, Inc. reported results for the first quarter ended August 31, 2022 in this Form 10-Q. Total revenue rose to $1,206.2 million from $1,082.9 million, an increase of 11%, driven by Management Solutions revenue of $905.5 million (up 12%) and PEO and Insurance Solutions revenue of $282.8 million (up 8%). Interest on funds held for clients increased 24% to $17.9 million. Operating income increased 12% to $495.6 million, and net income rose 14% to $379.2 million, or $1.05 per diluted share, compared with $0.92 a year earlier. Adjusted diluted earnings per share were $1.03, up 16%. Total expenses increased 11%, with compensation-related expenses up 11% and PEO insurance costs up 9%. The balance sheet shows cash and cash equivalents of $1,184.2 million at August 31, 2022, versus $370.0 million at May 31, 2022, largely reflecting a decline in corporate investments from $853.9 million to $45.8 million. Total assets were $9,125.9 million and total stockholders' equity was $3,137.4 million. Net cash provided by operating activities was $364.3 million, and dividends paid were $284.6 million, with the quarterly dividend raised to $0.79 per share from $0.66. Unrealized losses on available-for-sale securities were $175.6 million at quarter end. Management noted that the Federal Reserve raised the Federal Funds rate effective September 22, 2022, to a range of 3.00% to 3.25%. The company did not repurchase shares during the quarter and $327.1 million remained available under its $400 million repurchase program, which expires January 31, 2024. Management reported no material legal losses expected and an effective income tax rate of 22.9%, compared with 24.9% a year earlier.

    Sep 29, 2022
  14. 2022-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2022

    Paychex, Inc. filed this Quarterly Report on Form 10-Q for the third quarter of fiscal 2022, covering the three and nine months ended February 28, 2022. Total revenue was $1,276.0 million for the quarter, up 15% from $1,111.7 million, and $3,467.4 million for the nine months, up 15% from $3,027.6 million. Operating income rose 20% to $562.8 million for the quarter and 31% to $1,446.0 million for the nine months, and diluted earnings per share were $1.19 for the quarter, up 23% from $0.97. Management Solutions revenue grew 13% in the quarter and PEO and Insurance Solutions revenue grew 21%, with management citing client base growth, enhanced price realization, and higher worksite employee counts. Net income for the nine months was $1,096.4 million, up 31% from $834.5 million, and net cash provided by operating activities was $1,168.3 million. The company paid $714.9 million in dividends during the nine months, reflecting a quarterly dividend increase from $1.86 to $1.98 per share, and did not repurchase any shares in the period, leaving $472.4 million available under its two repurchase programs. Corporate investments rose to $1,086.0 million from $36.7 million at May 31, 2021, while long-term borrowings stood at $797.6 million. The filing notes that the COVID-19 pandemic continues to create uncertainty, and that the company held $3.9 billion of available-for-sale securities at a net unrealized loss of $30.9 million as of February 28, 2022. Management stated that interest-rate exposure is managed through a benchmark duration of two and one-half to three and three-quarters years, and that a 25-basis-point change in short-term rates would affect after-tax earnings by approximately $4.0 million to $4.5 million over twelve months.

    Mar 31, 2022
  15. 2022-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2021

    Paychex, Inc. reported results for its second quarter and six months ended November 30, 2021. Total revenue for the quarter was $1,108.5 million, up from $983.7 million, and net income was $332.1 million versus $272.4 million in the prior-year quarter. Diluted earnings per share were $0.91 compared with $0.75. Management attributes the growth to higher checks per payroll, a net gain in worksite employees, higher revenue per client from improved price realization, and strong sales and client retention. Operating income rose to $440.3 million for the quarter and $883.2 million for the six months, and the operating margin was 39.7% for the quarter. The balance sheet grew over the period, with total assets of $9,688.1 million and stockholders' equity of $3,119.8 million as of November 30, 2021. Cash and cash equivalents declined to $636.2 million from $995.2 million at May 31, 2021, while corporate investments rose to $376.0 million. Net cash provided by operating activities was $555.4 million for the six months, and the company paid $476.4 million in dividends. No shares were repurchased during the quarter, and $472.4 million remained available under the two repurchase programs. The filing notes that COVID-19 continues to affect results, though management expects the magnitude and duration of the impact to remain difficult to predict. The company completed a business acquisition in October 2021 that added a benefits administration software platform. Total borrowings were $806.4 million, and the company reported compliance with all debt covenants.

    Dec 22, 2021
  16. 2022-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2021

    Paychex, Inc. reported first-quarter fiscal 2022 results for the three months ended August 31, 2021. Total revenue rose 16% to $1,082.9 million from $932.2 million, led by Management Solutions revenue of $805.5 million (up 17%) and PEO and Insurance Solutions revenue of $262.9 million (up 14%). Total expenses fell 1% to $640.0 million, which included $31.2 million of one-time cost-saving initiative charges in the prior-year period. Operating income increased 56% to $442.9 million, and operating margin rose to 40.9% from 30.5%. Net income increased 58% to $333.6 million, and diluted earnings per share were $0.92 compared with $0.59. The company's adjusted diluted earnings per share, a non-GAAP measure, were $0.89 versus $0.63. Cash flow and liquidity remained strong. Net cash provided by operating activities was $385.6 million, compared with $215.0 million a year earlier. Cash and cash equivalents were $1,102.0 million at quarter-end, and total short- and long-term borrowings were $804.5 million. The company paid $238.1 million in dividends, reflecting a quarterly dividend increase from $0.62 to $0.66 per share. It did not repurchase shares during the quarter, and $472.4 million remained available under its repurchase programs. Subsequent to quarter-end, the company amended its $500 million JPMorgan credit facility to increase capacity to $750 million and extend its term to September 17, 2026. Management highlighted continued client growth, higher checks per client as employees returned to work, and better price realization. The filing notes that the COVID-19 pandemic will continue to affect results, though the magnitude and duration cannot be predicted. Investment portfolio risk remains limited, with AFS securities of $3,002.4 million, a net unrealized gain of $78.7 million at quarter-end, and no derivative instruments used to manage interest rate risk.

    Oct 1, 2021
  17. 2021-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2021

    Paychex, Inc. filed this Form 10-Q for the third quarter ended February 28, 2021. Total revenue for the quarter was $1,111.7 million, down 3% from $1,142.7 million a year earlier, as total service revenue fell to $1,096.6 million from $1,121.5 million. Management Solutions revenue was flat at $846.8 million, while PEO and Insurance Solutions revenue declined 8% to $249.8 million, driven by fewer worksite employees, lower state unemployment insurance margins and lower workers' compensation premiums. Operating income was essentially unchanged at $468.6 million, and diluted EPS was $0.97 versus $0.98. For the nine months, net income was $834.5 million (down 5%) and diluted EPS was $2.31 versus $2.43. The filing states that operating income for the nine months included $32.2 million of one-time cost-saving initiative charges, and that adjusted diluted EPS was $2.32 for the nine months. Cash flow from operations for the nine months was $870.6 million, compared with $1,052.7 million a year earlier. Cash, restricted cash and total corporate investments were stated at $1.1 billion, and total borrowings, net of issuance costs, were $804.2 million. Management states that COVID-19 continues to weigh on results, though client retention remains strong and at record levels, and that check volumes improved in the second and third quarters. The company repurchased 0.9 million shares for $76.0 million during the nine months and paid $670.5 million in dividends, and $152.1 million remained available under its $400 million repurchase program. The balance sheet shows total assets of $9,665.9 million and stockholders' equity of $2,976.4 million at February 28, 2021. Client fund obligations rose to $4,129.5 million, reflecting the funds held for clients that the company invests in available-for-sale securities, which carried a fair value of $3,207.4 million with a weighted-average yield-to-maturity of 1.9%.

    Apr 7, 2021
  18. 2021-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2020

    Paychex, Inc. reported results for the second quarter ended November 30, 2020 (three months) and the six months then ended. Total revenue for the quarter was $983.7 million, versus $990.7 million a year earlier, and service revenue was $968.9 million, consistent with the prior-year period of $970.8 million. Management Solutions revenue rose to $732.8 million, while PEO and Insurance Solutions revenue fell to $236.1 million from $244.1 million. Operating income increased to $354.3 million from $341.7 million, and net income rose to $272.4 million from $258.7 million. Diluted EPS was $0.75 versus $0.72. For the six months, net income was $484.0 million versus $522.9 million, and diluted EPS was $1.34 versus $1.45. The filing states that results improved sequentially but continued to be affected by the COVID-19 pandemic, with a decline in worksite employees and lower interest on funds held for clients. The balance sheet and cash flows show cash and cash equivalents of $693.5 million and total borrowings, net of debt issuance costs, of $803.9 million as of November 30, 2020. Net cash provided by operating activities was $430.7 million for the six months, compared with $564.6 million a year earlier. The company paid $446.7 million in dividends in the six months, declared at $1.24 per share, and repurchased $28.8 million of common stock. It reported $199.3 million remaining under its $400 million repurchase authorization. Accounts receivable and PEO unbilled receivables increased, and the filing notes the company deferred federal corporate payroll tax, which increased other long-term liabilities. Management cited one-time cost-saving initiatives of $32.2 million for the six months, and adjusted diluted EPS (a non-GAAP measure) of $1.36 for the six months. The company stated its disclosure controls were effective and that there were no material changes in internal control over financial reporting during the quarter.

    Dec 23, 2020
  19. 2021-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2020

    Paychex, Inc. reported its first-quarter results for the three months ended August 31, 2020 in this Form 10-Q. Total revenue decreased 6% to $932.2 million, driven by a 5% decline in Management Solutions revenue to $687.4 million and a 7% decline in PEO and Insurance Solutions revenue to $229.9 million, while interest on funds held for clients fell 28% to $14.9 million. Management attributed the revenue decline mainly to fewer check volumes and a lower number of clients' worksite employees, and said COVID-19 continued to affect results, though most key business metrics recovered faster than anticipated and client retention remained strong. Profitability declined more sharply than revenue. Operating income fell 19% to $284.0 million and net income fell 20% to $211.6 million, or $0.59 diluted EPS. These figures include $31.2 million of one-time costs tied to accelerated cost-saving initiatives, including a long-term plan to reduce the geographic footprint and headcount optimization. Excluding those costs, the company reported adjusted operating income of $315.2 million (down 10%), adjusted net income of $228.0 million (down 11%), and adjusted diluted EPS of $0.63 (down 11%). These are non-GAAP measures. The balance sheet and liquidity remained solid. Cash cash equivalents were $835.7 million, operating cash flow was $215.0 million, and total borrowings were $803.0 million. The company paid $223.2 million in dividends ($0.62 per share) and repurchased 0.4 million shares for $28.8 million, leaving $199.3 million under its buyback authorization. Management stated that existing cash, corporate investments, operating cash flows, and short-term financing should support operations for the foreseeable future.

    Oct 9, 2020
  20. 2020-Q3

    Paychex Quarterly Report for Q3 Ended Feb 29, 2020

    Paychex, Inc. reported third-quarter fiscal 2020 results for the three months ended February 29, 2020, with total revenue up 7% to $1,142.7 million and net income up 9% to $354.5 million, or $0.98 diluted earnings per share. For the nine months, total revenue rose 12% to $3,125.4 million and net income rose 9% to $877.4 million, or $2.43 per diluted share. Growth was led by PEO and Insurance Solutions, which rose 10% in the quarter and 36% for the nine months, with Oasis contributing approximately 3% and 28% to those respective periods. Management Solutions revenue increased 6% in both periods, driven by client base growth and higher revenue per client. Operating income increased 10% to $470.1 million for the quarter and 10% to $1,160.9 million for the nine months. Cash flow from operations was $1.05 billion for the nine months, up from $1.02 billion in the prior-year period. The company paid $666.8 million in dividends during the nine months and repurchased $171.9 million of common stock. Cash, restricted cash and total corporate investments totaled $930.4 million, and total borrowings net of debt issuance costs were $847.9 million as of February 29, 2020. The filing states that COVID-19, which the World Health Organization declared a pandemic in March 2020, creates uncertainty for clients and operations. Management said it had not incurred significant disruptions to date but could not accurately predict the impact. The Federal Reserve reduced the Federal Funds rate by a total of 150 basis points to a range of 0.0% to 0.25% after the quarter end, and the company noted the net unrealized gain on its investment portfolio was approximately $39.3 million as of March 26, 2020, down from $84.1 million at February 29, 2020.

    Mar 27, 2020
  21. 2020-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2019

    Paychex, Inc. reported second-quarter fiscal 2020 results for the three months ended November 30, 2019, with total revenue of $990.7 million, up 15% from $858.9 million a year earlier. Management Solutions revenue rose 6% to $726.7 million, while PEO and Insurance Services revenue increased 57% to $244.1 million, with Oasis contributing approximately 47% of that growth. Operating income increased 11% to $341.7 million, and net income rose 10% to $258.7 million, or $0.72 diluted earnings per share. For the six months, net income was $522.9 million and diluted EPS was $1.45, compared with $1.33 a year earlier. The company's financial position remained solid as of November 30, 2019, with cash, restricted cash and total corporate investments of $707.8 million and total borrowings, net of issuance costs, of $847.9 million. Operating cash flow for the six months was $564.6 million, up from $497.2 million. Paychex paid $444.3 million in dividends and repurchased 2.0 million shares for $171.9 million during the six months, with $228.1 million remaining under its May 2019 repurchase program. The Oasis acquisition, completed in December 2018, continues to drive the growth in PEO revenue and the increase in amortization and compensation-related costs. Operating margin declined to 34.5% for the quarter from 35.8% a year earlier, reflecting higher operating and SG&A expenses, including amortization from acquired intangibles. Headcount was approximately 15,700 employees as of November 30, 2019, up from approximately 14,600 a year earlier. The company reports a single segment, with substantially all revenue generated in the United States.

    Dec 20, 2019
  22. 2020-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2019

    Paychex, Inc. reported first-quarter fiscal 2020 results for the three months ended August 31, 2019, with total revenue of $992.0 million, up 15% from $862.8 million a year earlier. Management Solutions revenue rose 5% to $724.5 million, while PEO and Insurance Services revenue increased 56% to $247.0 million, with the filing noting that Oasis contributed a little less than 10% to total revenue growth. Operating income increased 9% to $349.1 million, and net income increased 8% to $264.2 million, or $0.73 per diluted share (up 9%). Operating margin was 35.2% compared with 37.1% in the prior-year period, and the company cited higher expenses tied to the Oasis acquisition and increased headcount. Cash flow from operations was $294.8 million, up 8%. Cash, restricted cash and total corporate investments totaled $695.3 million at August 31, 2019, and total short-term and long-term borrowings, net of debt issuance costs, were $853.0 million. The company repurchased 2.0 million shares for $171.9 million during the quarter and paid $222.0 million in dividends ($0.62 per share, up from $0.56), with about $228.1 million remaining under its May 2019 $400.0 million repurchase authorization. Total stockholders' equity declined to $2,519.3 million from $2,619.5 million at May 31, 2019, reflecting the buybacks and dividends, partly offset by $26.4 million of other comprehensive income. The filing also reports a $1.0 billion five-year unsecured revolving credit facility entered July 31, 2019, and that the company was in compliance with all financial covenants as of August 31, 2019. The company reported adoption of ASU 2016-02 (Leases) on June 1, 2019, which added $112.8 million of operating lease right-of-use assets and $130.8 million of total operating lease liabilities at August 31, 2019. Management concluded that disclosure controls were effective.

    Oct 4, 2019
  23. 2019-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2019

    Paychex, Inc. reported results for its third quarter of fiscal 2019 (three months ended February 28, 2019) and nine months ended February 28, 2019. Total revenue for the quarter was $1,070.4 million, up 14% from $936.1 million, and net income was $324.6 million, down 12% from $367.2 million. Diluted earnings per share were $0.90, versus $1.01 in the prior-year period as adjusted. The filing attributes the quarter's growth primarily to PEO and Insurance Services revenue, which rose 65% to $245.8 million with the acquisition of Oasis Outsourcing Group Holdings, L.P. (completed December 20, 2018). Excluding Oasis, PEO and Insurance Services revenue increased 17%, and Management Solutions revenue increased 4% to $801.6 million. The prior-year quarter's net income and EPS were affected by one-time net tax benefits from the Tax Act and a $32.6 million charge for terminating certain license agreements. Net income declined in the quarter largely because the prior-year period included one-time tax benefits, and the current quarter's effective income tax rate was 23.7% compared with 1.1% a year earlier. For the nine months, total revenue was $2,792.1 million, up 10%, and net income was $804.0 million, up 4%. Operating income for the quarter was $429.3 million, up 16%, and operating cash flow for the nine months was $1,022.8 million. The company financed the $984.1 million (net of cash acquired) Oasis purchase with temporary credit facility borrowings of $800.0 million, which were refinanced on March 13, 2019 with $800.0 million of long-term senior notes (4.07% Series A due 2026 and 4.25% Series B due 2029). The filing also notes that the company's fiscal 2019 outlook, excluding Oasis, was unchanged from the prior quarter. Management expects Oasis to add $155 million to $175 million of total revenue in fiscal 2019, with minimal impact on earnings per share excluding one-time acquisition costs, which are expected to reduce diluted EPS by about $0.03. Cash, restricted cash, and total corporate investments were $886.4 million as of February 28, 2019, and the company's dividend rate rose 12% beginning April 2018.

    Mar 29, 2019
  24. 2019-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2018

    Paychex, Inc. (PAYX) reported results for the second quarter and six months ended November 30, 2018, with total revenue rising 7% to $858.9 million for the quarter and net income increasing 19% to $235.8 million. Total service revenue reached $840.6 million, with Management Solutions revenue up 5% to $685.4 million and PEO and Insurance Services revenue up 15% to $155.2 million. Operating income increased 1% to $307.2 million, while diluted earnings per share rose 18% to $0.65. Results for the prior-year period were adjusted for the adoption of ASC Topic 606, which the company applied using the full retrospective method. The most significant event for investors is the December 20, 2018 closing of the acquisition of Oasis Outsourcing Group Holdings, L.P., the nation's largest privately owned PEO, for a purchase price of approximately $1.0 billion, net of about $200.0 million in cash acquired. The deal was funded with roughly $400.0 million of cash on hand and about $800.0 million of temporary borrowings, and the company is still securing permanent financing. Management expects Oasis to add $155 million to $175 million to fiscal 2019 total revenue, with one-time acquisition costs affecting diluted EPS by approximately $0.03 in the balance of the year. Fiscal 2019 guidance was revised excluding Oasis. Management expects net income to increase approximately 4%, diluted EPS to increase approximately 4%, and adjusted diluted EPS to increase 11% to 12%. Cash flow from operations was $497.2 million for the six months, a decrease of 4%, and cash and total corporate investments totaled $769.0 million at period end.

    Dec 21, 2018
  25. 2019-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2018

    Paychex, Inc. filed this Form 10-Q for the first quarter of fiscal 2019, the three months ended August 31, 2018. Total revenue rose 9% to $862.8 million, and total service revenue rose 9% to $845.7 million. Management Solutions revenue increased 3% to $687.7 million, while PEO and Insurance Services revenue increased 39% to $158.0 million, with the HROI acquisition contributing approximately 20% of that growth. Operating income increased 1% to $320.3 million, and the operating margin fell to 37.1% from 40.0%, as combined operating and SG&A expenses rose 14% to $542.5 million, driven largely by PEO insurance costs (up 70%) and compensation-related expenses (up 11%). Net income increased 16% to $243.6 million and diluted EPS rose 16% to $0.67. The effective tax rate fell to 24.5% from 34.1%, mainly due to the Tax Act. Adjusted net income, a non-GAAP measure, rose 18% to $242.0 million. These figures reflect the adoption of ASC Topic 606 on June 1, 2018, which was applied with full retrospective recast of prior periods. Cash flow from operations was $273.7 million, a 20% decrease from the prior year period, and the company reported cash and total corporate investments of $787.6 million. Management's fiscal 2019 outlook calls for Management Solutions revenue to increase approximately 4% and PEO and Insurance Services revenue to increase 18% to 20%. The company repurchased 0.5 million shares for $32.8 million during the quarter and had approximately $67.7 million remaining under its $350.0 million buyback program.

    Oct 5, 2018
  26. 2018-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2018

    Paychex, Inc. reported results for the third quarter and nine months ended February 28, 2018. Total revenue rose 9% to $866.5 million for the quarter and 7% to $2,509.8 million for the nine months. Net income increased 29% to $260.4 million for the quarter ($0.72 diluted EPS) and 13% to $705.2 million for the nine months ($1.95 diluted EPS). Results were boosted by one-time Tax Act benefits totaling $56.9 million, while operating income fell 5% to $292.5 million in the quarter because of a $32.6 million charge to terminate certain license agreements. Excluding that charge, adjusted operating income rose 6% to $325.1 million, and adjusted diluted EPS rose 15% to $0.63. Human resource services (HRS) revenue was the main growth driver, up 17% to $393.4 million in the quarter, helped by the August 2017 HROI acquisition, while payroll service revenue grew 2% to $455.0 million. Interest on funds held for clients rose 37% to $18.1 million as interest rates increased. Cash flow from operations was $988.9 million for the nine months, up 29%. The company paid $538.7 million in dividends and repurchased $94.1 million of stock during the nine months, and it closed the Lessor Group acquisition in Europe on February 28, 2018 for $160.6 million net of cash acquired. For fiscal 2018, management guides to total revenue growth of about 7%, an operating margin of about 38%, and diluted EPS growth of 13% to 14%, with adjusted diluted EPS growth of 15% to 16%. The company also disclosed a subsequent event: the license termination was completed in March 2018, and client-list rights were acquired for about $30.0 million.

    Mar 28, 2018
  27. 2018-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2017

    Paychex, Inc. reported results for the second quarter ended November 30, 2017, with total revenue up 7% to $826.5 million and net income up 7% to $217.0 million, or $0.60 per diluted share. Total service revenue rose 7% to $812.5 million, with the HROI acquisition contributing approximately 3% of that growth. Payroll service revenue increased 1% to $444.8 million, while HRS revenue increased 15% to $367.7 million. Operating income grew 7% to $332.2 million, with operating income margin of 40.2% for the quarter. Adjusted diluted earnings per share, a non-GAAP measure that excludes excess tax benefits from stock-based compensation, rose 5% to $0.59. For the six months ended November 30, 2017, cash flow from operations was $519.4 million, up 26%, and cash and total corporate investments totaled $819.5 million at quarter end. Short-term borrowings were $133.4 million, including $75.0 million outstanding under the JPM $500 million facility and $58.4 million under the PNC facility. The company repurchased 1.6 million shares for $94.1 million during the six months, leaving approximately $149.4 million available under its $350.0 million repurchase program. Management's fiscal 2018 guidance is unchanged and excludes tax reform impacts. Management expects tax reform to reduce the annualized effective income tax rate by 10% to 12%. Guidance calls for total revenue growth of approximately 6%, diluted EPS growth of 5% to 6%, and adjusted diluted EPS growth of 7% to 8%.

    Dec 21, 2017
  28. 2018-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2017

    Paychex, Inc. reported results for the first quarter of fiscal 2018, the three months ended August 31, 2017. Total revenue rose 4% to $816.8 million, with total service revenue up 4% to $803.1 million. Payroll service revenue increased 2% to $457.8 million, and HRS revenue increased 7% to $345.3 million, driven by growth in client base across major HCM services. Interest on funds held for clients increased 14% to $13.7 million, primarily on higher average interest rates. Operating income rose 7% to $345.0 million, and operating margin expanded 110 basis points to 42.2%. Net income and diluted earnings per share each increased 5%, to $227.8 million and $0.63 per share. Adjusted diluted earnings per share, a non-GAAP measure that excludes an excess tax benefit from employee stock-based compensation, increased 11% to $0.62. The quarter included the August 18, 2017 acquisition of HR Outsourcing Holdings, Inc. (HROI), a national PEO serving small and medium-sized businesses in more than 35 states, for a purchase price of $75.4 million ($42.2 million cash plus $33.2 million in common stock). The company also repurchased 1.6 million shares for $94.1 million and increased its quarterly dividend 9% to $0.50 per share. Cash and total corporate investments totaled $851.4 million at August 31, 2017, and short-term borrowings were $57.2 million. Cash flow from operations was $343.6 million, up 17%. Management updated fiscal 2018 guidance to reflect the HROI acquisition and a discrete tax benefit. It now expects HRS revenue growth of 12% to 14%, total revenue growth of approximately 6%, operating income of 39% to 40% of total revenue, and an effective tax rate of 35.0% to 35.5%. The company also announced a plan to purchase five buildings and renovate space for a new multi-building campus in Rochester, NY, at an estimated cost of $60 million.

    Oct 6, 2017
  29. 2017-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2017

    Paychex, Inc. reported its third-quarter fiscal 2017 results for the three and nine months ended February 28, 2017. Total revenue for the quarter rose 6% to $795.8 million, with total service revenue up 6% to $782.6 million. Payroll service revenue increased 2% to $446.6 million and Human Resource Services (HRS) revenue increased 12% to $336.0 million. Operating income grew 10% to $306.6 million, and net income increased 12% to $202.5 million, or $0.56 per diluted share. For the nine months, net income was $622.0 million and diluted EPS was $1.71, up 7% from the prior year. Adjusted diluted EPS (non-GAAP) was $0.55 for the quarter and $1.66 for the nine months, reflecting excess tax benefits from stock compensation and, in the prior year, a discrete tax benefit. The company's balance sheet grew substantially, with total assets of $7.31 billion versus $6.44 billion at May 31, 2016, driven largely by increases in funds held for clients and client fund obligations. Cash and total corporate investments were $844.1 million, and short-term borrowings totaled $55.4 million under a PNC Bank credit facility. Cash flow from operations was $769.3 million for the nine months, compared with $791.2 million a year earlier, mainly due to changes in operating assets and liabilities. Dividends paid were $496.9 million, and the quarterly dividend was raised 10% to $0.46 per share in July 2016. Management's fiscal 2017 guidance calls for payroll service revenue growth of 3% to 4%, HRS revenue growth of 12% to 14%, total service revenue growth of 7% to 8%, and a net income increase of approximately 7%, with an effective tax rate of about 35%. The company also noted that the Federal Funds rate was raised in March 2017 to a range of 0.75% to 1.0%, and that it repurchased no shares in the third quarter.

    Mar 31, 2017
  30. 2017-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2016

    Paychex, Inc. reported results for the three and six months ended November 30, 2016 (fiscal 2017 second quarter). Total revenue rose 7% to $771.4 million for the quarter and 8% to $1,556.9 million for the six months. Service revenue reached $760.0 million for the quarter, with Human Resource Services (HRS) revenue up 12% to $319.1 million and payroll service revenue up 3% to $440.9 million. Operating income increased 6% to $311.1 million, and net income rose 7% to $202.1 million, with diluted earnings per share of $0.56 for the quarter. Management noted operating income margins of slightly more than 40%. For fiscal 2017, management guided to payroll service revenue growth of 3% to 4%, HRS revenue growth of 12% to 14%, total service revenue growth of 7% to 8%, and GAAP net income growth of approximately 7%. The company reported cash and total corporate investments of $725.1 million and short-term borrowings of $103.1 million as of November 30, 2016. Operating cash flow for the six months was $413.4 million, and the company paid $331.5 million in dividends and repurchased $166.2 million of common stock during the period. The filing also shows that the company's funds held for clients and corporate investments carried a net unrealized loss of $24.8 million at November 30, 2016, compared with a net unrealized gain of $47.6 million at May 31, 2016. Management stated these losses were not other-than-temporary impairments. The company also noted the Federal Reserve's December 2016 rate increase and a November 2016 federal preliminary injunction blocking the Department of Labor's Final Overtime Rule.

    Dec 23, 2016
  31. 2017-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2016

    Paychex, Inc. reported first-quarter fiscal 2017 results for the three months ended August 31, 2016. Total revenue rose 9% to $785.5 million from $723.0 million, driven by service revenue of $773.5 million, up 9%. Payroll service revenue increased 4% to $450.9 million, and Human Resource Services (HRS) revenue increased 15% to $322.6 million, with management citing double-digit growth in worksite employees served. Net income was $217.4 million, up 4% from $209.1 million, and diluted earnings per share were $0.60, up 3% from $0.58. The filing states that discrete tax items, including an effective tax rate of 33.0% versus 29.7% a year earlier, reduced net income growth by approximately 5% and diluted EPS growth by approximately 6%. Balance sheet and cash flow data show cash and total corporate investments of $944.0 million at August 31, 2016, and operating cash flow of $294.7 million for the quarter. Total assets were $6.10 billion and stockholders' equity was $1.99 billion. Short-term borrowings of $51.3 million, drawn under a PNC Bank facility to fund payroll funding arrangements with temporary staffing clients, were outstanding at quarter end. Dividends paid were $166.3 million, and the quarterly dividend was raised 10% to $0.46 per share. No shares were repurchased during the quarter. Management's fiscal 2017 guidance, updated in the filing, calls for payroll service revenue growth of about 3% to 4%, HRS revenue growth of 12% to 14%, total service revenue growth of 7% to 8%, net income growth of about 7% as reported, and an effective tax rate of about 35.0%. The filing also notes a Department of Labor Final Overtime Rule effective December 1, 2016, and that the company's investment portfolio is high credit quality, with a weighted-average yield-to-maturity of 1.7%.

    Sep 30, 2016
  32. 2016-Q3

    Paychex Quarterly Report for Q3 Ended Feb 29, 2016

    Paychex, Inc. reported results for the third quarter of fiscal 2016 (three months ended February 29, 2016), with total revenue up 7% to $752.6 million, total service revenue up 7% to $740.7 million, operating income up 6% to $280.0 million, and net income up 7% to $180.4 million. Diluted earnings per share rose 9% to $0.50. Payroll service revenue grew 4% to $439.6 million, while Human Resource Services (HRS) revenue grew 12% to $301.1 million. For the nine months, net income was $578.7 million, up 13%, and diluted EPS was $1.60, up 13%, though the nine-month results include a net tax benefit recorded in the first quarter related to prior tax years from customer-facing software. Excluding that benefit, the filing states net income and diluted EPS for the nine months would have increased 9% and 10%, respectively. The company acquired substantially all assets of Advance Partners on December 22, 2015, for a base purchase price of $190.5 million plus settlement of $118.4 million of debt, net of $12.8 million cash acquired, and recorded goodwill of $94.7 million. Management states the acquisition is not expected to have a material impact on results for the rest of the fiscal year. Cash flow from operations was $791.2 million for the nine months, and cash and total corporate investments were $755.8 million with no debt outstanding. The company repurchased 2.2 million shares for $107.9 million during the nine months and paid $455.0 million in dividends. The filing notes that interest rates remain low, with the combined portfolio earning an average 1.0% in the third quarter, and that the Federal Reserve raised the Federal Funds rate by 25 basis points in December 2015. Management's fiscal 2016 guidance projects total service revenue growth of 7% to 8% and net income growth of 8% to 9%, excluding the prior-year tax benefit.

    Mar 30, 2016
  33. 2016-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2015

    Paychex, Inc. reported its second-quarter fiscal 2016 results for the three months ended November 30, 2015, with total revenue up 7% to $722.4 million and net income up 9% to $189.2 million, or $0.52 per diluted share. Total service revenue rose 7% to $711.3 million, driven by Payroll service revenue up 4% to $427.4 million and Human Resource Services (HRS) revenue up 11% to $283.9 million. Operating income increased 9% to $294.2 million, and operating income net of certain items increased 9% to $283.1 million. For the six months, net income rose 16% to $398.3 million, though the effective tax rate fell to 32.9% because of a first-quarter net tax benefit tied to prior-year software deductions. Excluding that benefit, the filing states that six-month net income and diluted EPS would have increased 10% and 12%, respectively. The balance sheet remained liquid, with cash and total corporate investments of $912.9 million and no debt as of November 30, 2015. Cash flow from operations was $419.9 million for the six months, up from $404.7 million. The company paid $303.6 million in dividends during the six months, and the quarterly dividend was raised 11% to $0.42 per share in July 2015. The company repurchased 1.3 million shares for $62.9 million during the six months, with $350 million of authorization expiring May 31, 2017. Management guided fiscal 2016 total service revenue growth of 7% to 8% and net income growth of 8% to 9%, excluding the prior-year tax benefit. Subsequent to the quarter, on December 22, 2015, the company completed its acquisition of Advance Partners, a provider of financial, operational, and strategic services to independent staffing firms. The filing states the deal is not anticipated to have a material impact on results for the remainder of fiscal 2016. The filing also notes the Federal Reserve's December 16, 2015 increase of the Federal Funds rate by 25 basis points, which management expects to affect investment income over time as longer-duration securities reprice.

    Dec 23, 2015
  34. 2016-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2015

    Paychex, Inc. reported strong first-quarter results for the three months ended August 31, 2015 (fiscal 2016). Total revenue rose 8% to $723.0 million, with total service revenue of $712.2 million. Payroll service revenue increased 5% to $432.5 million, and Human Resource Services (HRS) revenue increased 15% to $279.7 million. Operating income rose 11% to $296.1 million, and net income rose 22% to $209.1 million, or $0.58 per diluted share, up 23%. The filing notes that net income and diluted EPS were boosted by a net tax benefit from income derived in prior tax years from customer-facing software. The company states that excluding this benefit, net income and diluted EPS would have increased 11%, and the effective tax rate would have been approximately 36.0% instead of 29.7%. Management also highlighted that interest rates on high-quality instruments remain low, with the combined funds held for clients and corporate investment portfolios earning an average return of 1.0%. The company ended the quarter with cash and total corporate investments of $953.9 million and no debt. During the quarter it repurchased 1.3 million shares for $62.9 million and paid $151.9 million in dividends. In July 2015 the quarterly dividend was raised 11% to $0.42 per share. The company also entered into a new $1.0 billion five-year unsecured credit facility on August 5, 2015, and fiscal 2016 guidance calls for total service revenue growth of 7% to 8% and net income growth of 8% to 9%, excluding the tax benefit.

    Sep 30, 2015
  35. 2015-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2015

    Paychex, Inc. reported its third quarter of fiscal 2015 (three months ended February 28, 2015) with total revenue of $704.3 million, up 8% from $650.4 million, and net income of $169.4 million, up 6% from $160.1 million. Total service revenue rose 8% to $693.6 million, driven by Human Resource Services (HRS) revenue, which increased 19% to $269.8 million, while payroll service revenue increased 2% to $423.8 million. Operating income rose 5% to $264.3 million, and diluted earnings per share increased 5% to $0.46. For the nine months, net income was $513.7 million, up 7%, and diluted earnings per share was $1.41, up 8%. The filing states that the minimum premium plan health insurance offering within the PEO contributed five and seven percentage points to HRS revenue growth for the third quarter and nine months, respectively, and added costs that weighed on operating income, net of certain items, as a percent of service revenue, which was 36.6% in the quarter versus 37.5% a year earlier. The balance sheet remained strong, with cash and total corporate investments of $1.0 billion and no debt as of February 28, 2015. Net cash provided by operating activities for the nine months was $692.8 million, compared with $705.8 million a year earlier. Paychex paid $414.4 million in dividends during the nine months, and the quarterly dividend was raised 9% to $0.38 per share in July 2014. The company repurchased 1.7 million shares for $70.4 million during the nine months under a $350 million authorization that runs through May 31, 2017. Management reaffirmed fiscal 2015 guidance for total service revenue growth of 8% to 10% and net income growth of 6% to 8%, and the filing notes that interest rates on high-quality instruments remain low, with the combined portfolio earning an average 0.9% in the quarter. The filing indicates that the interest rate environment continues to weigh on the company's investment income, and that management believes its investments were not other-than-temporarily impaired as of February 28, 2015. Management also reported that disclosure controls were effective and that there was no change in internal control over financial reporting during the quarter.

    Mar 25, 2015
  36. 2015-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2014

    Paychex, Inc. (PAYX) filed this Quarterly Report on Form 10-Q for the second quarter of fiscal 2015, the three and six months ended November 30, 2014. Total revenue for the quarter was $676.3 million, up 10% from $616.4 million, and total service revenue was $665.9 million, up 10%. Payroll service revenue grew 4% to $411.2 million, while Human Resource Services (HRS) revenue grew 21% to $254.7 million. Operating income rose 9% to $270.2 million and net income rose 9% to $173.0 million, or $0.47 per diluted share. For the six months, net income was $344.3 million and diluted EPS was $0.94. The company reported cash and total corporate investments of $927.5 million and no debt as of November 30, 2014. Cash flow from operations was $404.7 million for the six months, and the company paid $276.2 million in dividends during the period. The quarterly dividend was raised 9% to $0.38 per share in July 2014. Repurchases totaled $52.5 million for 1.3 million shares in the six months under a $350 million program authorized in May 2014. Management reaffirmed fiscal 2015 guidance unchanged from June 2014, including total service revenue growth of 8% to 10% and net income growth of 6% to 8%. The filing notes that interest rates on high-quality instruments remain low, with the combined portfolio earning an average 1.1% return. Management also highlighted the launch of Paychex Flex, a SaaS platform, during the quarter.

    Dec 19, 2014
  37. 2015-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2014

    Paychex, Inc. reported first-quarter fiscal 2015 results for the three months ended August 31, 2014. Total revenue rose 9% to $666.8 million, driven by total service revenue of $656.6 million, which the filing says increased 9%. Payroll service revenue grew 4% to $412.8 million, while HRS revenue increased 17% to $243.8 million, with growth attributed to clients and worksite employees served within Paychex HR Services, including the PEO. Operating income increased 5% to $267.5 million, and net income increased 5% to $171.3 million. Diluted earnings per share were $0.47, up 7% from $0.44. Operating expenses rose 12% to $399.3 million, with compensation-related expenses up 7% and other expenses up 22%. Other expenses reflected costs tied to the new PEO minimum premium health plan and continued investment in product development and supporting technology. Cash flow from operations was $263.1 million, and the company reported cash and total corporate investments of $955.8 million with no debt as of August 31, 2014. The company repurchased 0.9 million shares for $37.5 million and increased its quarterly dividend 9% to $0.38 per share. Management reaffirmed fiscal 2015 guidance, including total service revenue growth of 8% to 10% and net income growth of 6% to 8%. The filing also highlights the company's sensitivity to interest rates, with a hypothetical 25-basis-point increase in longer-term rates potentially reducing the fair value of its available-for-sale portfolio by $20.0 million to $25.0 million. Management stated that its investments were not other-than-temporarily impaired as of August 31, 2014, and that legal matters are not expected to have a material adverse effect.

    Sep 24, 2014
  38. 2014-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2014

    Paychex, Inc. reported its third quarter of fiscal 2014 (three months ended February 28, 2014) with total revenue of $636.5 million, up 7% from $593.3 million, and net income of $160.1 million, up 11% from $144.5 million. Diluted earnings per share were $0.44, up 10% from $0.40. Total service revenue grew 7% to $626.0 million, with payroll service revenue up 5% to $413.9 million and Human Resource Services (HRS) revenue up 12% to $212.1 million. Operating income rose 11% to $250.7 million, and operating income net of certain items rose 12% to $240.2 million. For the nine months, net income was $481.6 million, up 8%, and diluted earnings per share were $1.31, up 7%. The company's financial position remained strong, with cash and total corporate investments of $963.5 million and no debt as of February 28, 2014. Cash flow from operations was $705.8 million for the nine months. Management noted that low interest rates continue to weigh on interest on funds held for clients and investment income, with a combined average rate of return of 0.9% for the quarter compared to 1.0% a year earlier. During the nine months, the company repurchased 5.0 million shares for $203.0 million under a $350 million program expiring May 31, 2014. For fiscal 2014, management's outlook projects total service revenue growth of 5% to 6%, net income growth of 9% to 10%, and operating income net of certain items at approximately 38% of total service revenue. The company also noted a strong fourth-quarter comparison related to a fiscal 2013 state income tax settlement that reduced diluted earnings per share by about $0.04 in that year.

    Mar 26, 2014
  39. 2014-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2013

    Paychex, Inc. filed this Form 10-Q for the second quarter of fiscal 2014, the three months ended November 30, 2013. Total revenue rose 7% to $610.5 million for the quarter and 6% to $1,218.4 million for the six months. Payroll service revenue increased 5% to $395.7 million, driven by growth in checks per payroll and revenue per check, and Human Resource Services (HRS) revenue increased 12% to $204.8 million, driven by client base growth in retirement services, Paychex HR Solutions, and eServices. Operating income rose 8% to $248.6 million, and net income rose 7% to $158.7 million, or $0.43 diluted earnings per share. Profitability was supported by growth in revenue, but total expenses rose 7% for the quarter, largely from investments in product development and supporting technology. Investment income, net, fell 35% on lower average interest rates earned, which were 1.1% on the combined funds held for clients and corporate investment portfolios versus 1.2% a year earlier. Net cash provided by operating activities was $400.2 million for the six months, compared with $326.0 million in the prior year period. The company reported cash and total corporate investments of $839.3 million and no debt as of November 30, 2013. Management's fiscal 2014 guidance projects total service revenue growth of 5% to 6% and net income growth of 8% to 9%, with the effective tax rate expected at 36% to 37%. The company repurchased 4.0 million shares for $159.1 million during the six months under a $350 million authorization that expires May 31, 2014. Management expects low interest rates to continue weighing on investment-related income.

    Dec 20, 2013
  40. 2014-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2013

    Paychex, Inc. reported its first-quarter fiscal 2014 results for the three months ended August 31, 2013, showing continued growth. Total revenue rose 5% to $607.9 million, with payroll service revenue up 2% to $395.2 million and Human Resource Services (HRS) revenue up 11% to $202.7 million. Operating income increased 7% to $255.1 million, and net income rose 6% to $162.8 million, or $0.44 per diluted share, up 5%. Management attributed the results to solid sales execution in small market payroll and HRS, with client satisfaction and retention at record levels, while noting that low interest rates continue to weigh on interest on funds held for clients and investment income. The company ended the quarter with cash and total corporate investments of $924.8 million and no debt. Cash flow from operations was $266.7 million, compared with $217.7 million in the prior-year period. During the quarter, Paychex repurchased 2.1 million shares for $83.9 million under its $350 million authorization, and the quarterly dividend was raised 6% to $0.35 per share. Total stockholders' equity declined to $1.75 billion from $1.77 billion, largely due to a $26.9 million other comprehensive loss from unrealized losses on securities as market interest rates rose. For fiscal 2014, management's guidance calls for total service revenue growth of 5% to 6% and net income growth of 8% to 9%. Operating income, net of certain items, is expected to be approximately 38% of total service revenue, and the average return on combined funds held for clients and corporate investments is expected to be approximately 1.0%.

    Sep 30, 2013
  41. 2013-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2013

    Paychex, Inc. reported its third-quarter fiscal 2013 results for the three months ended February 28, 2013, with total revenue of $593.3 million, up 4% from $569.5 million a year earlier, and net income of $144.5 million, up 7% from $135.4 million. Diluted earnings per share were $0.40, compared with $0.37. Payroll service revenue rose 2% to $393.7 million, while Human Resource Services (HRS) revenue grew 10% to $188.7 million. Operating income increased 7% to $225.0 million. For the nine months, total revenue was $1.74 billion, net income was $445.5 million, and diluted earnings per share were $1.22. Management cited low interest rates as a continuing drag on results. Interest on funds held for clients declined 6% for the nine months to $31.0 million, and the combined portfolio earned an average return of 1.0% for the quarter. The company expects fiscal 2013 net income growth of 5% to 7% and operating income, net of certain items, of 37% to 38% of total service revenue. Management also noted that checks per payroll rose 2.3% in the quarter, aided by year-end bonus activity, and that client retention remains at record levels. The balance sheet shows cash and total corporate investments of $797.6 million and no debt as of February 28, 2013. Cash from operations for the nine months was $606.4 million, and dividends paid were $476.7 million, reflecting an accelerated December 2012 dividend of $0.66 per share. Quarterly dividend was increased 3% to $0.33 per share in October 2012.

    Mar 27, 2013
  42. 2013-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2012

    Paychex, Inc. reported a second quarter of fiscal 2013 (three months ended November 30, 2012) with total revenue of $569.4 million, up 4% from $545.7 million a year earlier, and net income of $147.9 million, or $0.41 per diluted share, compared with $140.4 million and $0.39 a year earlier. Service revenue rose 5% to $559.4 million, with Payroll service revenue up 1% to $377.0 million and Human Resource Services (HRS) revenue up 12% to $182.4 million. Operating income increased 6% to $230.0 million, while interest on funds held for clients fell 8% to $10.0 million, reflecting the low interest rate environment (the Federal Funds rate has been 0% to 0.25% since December 2008). For the six months, net income was $301.0 million and operating cash flow was $326.0 million. The company ended the period with cash and total corporate investments of $805.5 million and no debt. Total assets were $5.72 billion, and stockholders' equity was $1.70 billion. Management noted that payroll revenue growth was tempered by lost revenue from clients affected by Hurricane Sandy, estimated at about 0.5% of payroll revenue, and that checks per payroll growth moderated to 1.2% in the quarter from 2.0% in the first quarter. Management revised fiscal 2013 guidance, projecting total service revenue growth of 5% to 6% and net income growth of 5% to 7%. A subsequent event disclosed that on December 10, 2012, the Board declared an accelerated dividend of $0.66 per share, payable December 28, 2012, in lieu of the quarterly dividends that would otherwise have been declared and paid in the third and fourth quarters of fiscal 2013.

    Dec 20, 2012
  43. 2013-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2012

    Paychex, Inc. filed this Form 10-Q for the quarterly period ended August 31, 2012, the first quarter of fiscal 2013. Total revenue rose 3% to $578.2 million, operating income rose 4% to $238.0 million, and net income rose 3% to $153.1 million, or $0.42 diluted earnings per share. Total service revenue was $568.1 million, with payroll service revenue up 1% to $385.9 million and Human Resource Services revenue up 7% to $182.2 million. Management attributed growth to a 2.0% increase in checks per payroll and price increases, partially offset by discounting. Interest rates remained a headwind. Interest on funds held for clients fell 9% to $10.1 million, and the combined portfolio earned an average rate of return of 1.2%, versus 1.3% a year earlier. The Federal Funds rate has been in a range of 0% to 0.25% since December 2008. Management reaffirmed fiscal 2013 guidance, including total service revenue growth of 5% to 6%, net income growth of 5% to 7%, and an expected fiscal 2013 average portfolio return of approximately 1.0%. The balance sheet remained strong, with cash and total corporate investments of $871.3 million and no debt as of August 31, 2012. Operating cash flow was $217.7 million, and dividends paid totaled $116.4 million, or $0.32 per share. Management stated that it believes the unrealized losses in its available-for-sale securities reflect interest-rate changes rather than credit concerns, and that the company's investments were not other-than-temporarily impaired.

    Sep 24, 2012
  44. 2012-Q3

    Paychex Quarterly Report for Q3 Ended Feb 29, 2012

    Paychex, Inc. filed this Form 10-Q for the quarterly period ended February 29, 2012, covering the third quarter of fiscal 2012. Total service revenue rose 8% to $558.5 million for the quarter, with payroll service revenue up 5% to $386.5 million and Human Resource Services revenue up 12% to $172.0 million. Interest on funds held for clients fell 7% to $11.0 million because of lower interest rates. Total revenue increased 7% to $569.5 million, operating income increased 6% to $210.4 million, and net income increased 4% to $135.4 million, or $0.37 diluted earnings per share. For the nine months, net income was $424.7 million and diluted EPS was $1.17. Management said growth in checks per payroll was 1.8% for the quarter and is expected to moderate for the rest of fiscal 2012. The company cited a challenging environment for new business formation and low interest rates, with the Federal Funds rate at 0% to 0.25%. Operating income, net of certain items, a non-GAAP measure, rose 7% to $199.4 million for the quarter. Management reaffirmed fiscal 2012 guidance of 7% to 9% total service revenue growth and 5% to 7% net income growth. As of February 29, 2012, the company reported cash and total corporate investments of $798.7 million, no debt, and total stockholders' equity of $1.60 billion. Operating cash flow for the nine months was $562.6 million, and dividends paid were $344.3 million. Quarterly dividends were increased 3% to $0.32 per share.

    Mar 28, 2012
  45. 2012-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2011

    Paychex, Inc. reported results for the second quarter of fiscal 2012, the three months ended November 30, 2011. Total service revenue rose 7% to $535.0 million, and total revenue rose 7% to $545.7 million. Operating income increased 7% to $217.9 million, and net income increased 5% to $140.4 million, or $0.39 per diluted share. For the six months, total revenue was $1,108.8 million, up 8%, and net income was $289.3 million, up 9%, or $0.80 per diluted share. Operating income, net of certain items (a non-GAAP measure that excludes interest on funds held for clients), rose 8% for the quarter to $207.2 million and 12% for the six months to $425.8 million. Management cited continuing improvement in the business, but noted that checks per client growth is moderating: up 1.5% in the second quarter versus 2.0% in the first quarter. Revenue per check benefited from price increases and lower discounting. Interest on funds held for clients fell 10% for the quarter to $10.7 million, reflecting low interest rates; the combined portfolio earned an average return of 1.3%, versus 1.5% a year earlier. Acquisitions of SurePayroll and ePlan contributed about 2.0% to total revenue growth in the quarter. The company reported cash and total corporate investments of $676.3 million and no debt as of November 30, 2011. Operating cash flow for the six months was $297.2 million, down from $319.2 million. Management reaffirmed fiscal 2012 guidance, including total service revenue growth of 7% to 9% and net income growth of 5% to 7%, and quarterly dividend was raised 3% to $0.32 per share.

    Dec 20, 2011
  46. 2012-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2011

    Paychex, Inc. reported a first quarter of fiscal 2012 (three months ended August 31, 2011) with continued growth in revenue and earnings. Total revenue rose 9% to $563.1 million from $518.3 million, driven by Payroll service revenue up 6% to $382.3 million and Human Resource Services revenue up 17% to $169.7 million. Interest on funds held for clients fell 9% to $11.1 million, reflecting low interest rates. Operating income increased 14% to $229.7 million, and net income rose 13% to $148.9 million, or $0.41 diluted earnings per share, versus $0.36 a year earlier. Management attributed the growth partly to the SurePayroll and ePlan acquisitions, which it said added approximately 2.0% to total revenue growth in the quarter. Management said checks per client increased 2.0%, and it expects checks per client to moderate through fiscal 2012. It also said the lack of robust new business formation continues to affect the sales environment, and that low interest rates continue to weigh on results. The company reaffirmed its fiscal 2012 guidance, expects operating income, net of certain items, to be about 36% of service revenue for the year, and projects an average return on its combined portfolio of 1.2%. Cash flow from operations was $187.2 million, and the company reported cash and total corporate investments of $718.0 million with no debt as of August 31, 2011. The filing describes a company with strong liquidity and no debt, but with earnings sensitive to interest rates and client employment trends. Management stated that the company does not expect the favorable expense trend seen in the first quarter to continue as it keeps investing in the business.

    Sep 27, 2011
  47. 2011-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2011

    Paychex, Inc. reported its third-quarter fiscal 2011 results (three months ended February 28, 2011) in this Form 10-Q. Total revenue rose 5% to $531.3 million, total service revenue increased 5% to $519.6 million, and operating income increased 18% to $198.9 million. Net income increased 17% to $130.6 million and diluted earnings per share increased 16% to $0.36. For the nine months, total revenue was $1,561.6 million, net income was $396.4 million (up 10%), and diluted EPS was $1.09 (up 9%). The third quarter of the prior year included an $18.7 million litigation reserve charge, which affects the comparison; excluding that charge and interest on funds held for clients, operating income net of certain items rose 8% to $187.2 million. On February 8, 2011, Paychex acquired SurePayroll, Inc. for $115.3 million, net of cash acquired, resulting in approximately $87.0 million of goodwill. Management states SurePayroll is not material to results, and does not expect a material impact on fiscal 2011. Payroll service revenue grew 2% to $366.4 million for the quarter, while Human Resource Services revenue grew 13% to $153.2 million. Checks per client rose 2.8% for the quarter, but the payroll client base was 1.6% lower year over year. Interest on funds held for clients fell 16% to $11.7 million because of low interest rates, with the Federal Funds rate at 0% to 0.25%. The company reported cash and total corporate investments of $652.3 million and no debt as of February 28, 2011. Operating cash flow for the nine months was $552.9 million, compared with $503.0 million a year earlier. Management's fiscal 2011 guidance calls for total service revenue growth of 3% to 5%, net income growth of 4% to 6%, and an effective income tax rate of approximately 35%.

    Mar 23, 2011
  48. 2011-Q2

    Paychex Quarterly Report for Q2 Ended Nov 30, 2010

    Paychex, Inc. (PAYX) reported its second-quarter fiscal 2011 results for the three months ended November 30, 2010, with total revenue of $512.0 million, up from $496.6 million, and net income of $133.9 million, or $0.37 per diluted share, versus $125.8 million and $0.35 a year earlier. Total service revenue was $500.0 million, with payroll service revenue of $354.8 million and Human Resource Services revenue of $145.2 million. Operating income rose to $203.9 million, and operating income, net of certain items, was $191.9 million. For the six months, net income was $265.8 million and diluted EPS was $0.73. Interest on funds held for clients fell to $12.0 million for the quarter, reflecting lower average interest rates earned, with the combined portfolio yielding an average of 1.5% versus 1.7% a year earlier. Management said it continues to invest in sales, customer service and technology. Cash and total corporate investments were $689.9 million with no debt as of November 30, 2010. Operating cash flow for the six months was $319.2 million, compared with $279.1 million a year earlier. Subsequent to the quarter, on December 9, 2010, the company agreed to acquire SurePayroll, Inc. for approximately $115.0 million. The filing states the transaction is expected to close by the end of calendar 2010, and management does not anticipate a material impact on fiscal 2011 financial results. The company also reaffirmed fiscal 2011 guidance, including total service revenue growth of 3% to 5% and net income growth of 4% to 6%.

    Dec 20, 2010
  49. 2011-Q1

    Paychex Quarterly Report for Q1 Ended Aug 31, 2010

    Paychex, Inc. (PAYX) reported a year-over-year increase in results for the first quarter of fiscal 2011, the three months ended August 31, 2010. Total revenue rose 4% to $518.3 million from $500.2 million, driven by service revenue of $506.2 million, with Payroll service revenue up 2% to $360.7 million and Human Resource Services revenue up 10% to $145.5 million. Operating income increased 6% to $200.8 million, and net income increased 7% to $131.9 million, or $0.36 diluted earnings per share, compared with $0.34 a year earlier. Operating income, net of certain items (a non-GAAP measure that excludes interest on funds held for clients), rose 7% to $188.7 million, and the operating margin on that basis was 37.3% of service revenue versus 36.2% a year earlier. The filing notes that the interest rate environment continues to weigh on results. Interest on funds held for clients fell 12% to $12.1 million, and the combined portfolio's average rate of return was 1.5% versus 1.7% a year earlier. Management said it remains cautiously optimistic about the economic recovery and reaffirmed that it will revisit fiscal 2011 guidance issued in June 2010 as the year evolves. The company reported cash and total corporate investments of $716.4 million and no debt as of August 31, 2010, and cash flow from operations rose 4% to $194.3 million. The balance sheet shows total assets of $5.04 billion and stockholders' equity of $1.44 billion. Client fund obligations and funds held for clients are the largest items and are offset by each other. The quarter also included one-time costs tied to the separation agreement with former President and CEO Jonathan J. Judge, which are reflected in compensation-related and stock-based compensation expenses. The quarterly dividend remained $0.31 per share.

    Sep 27, 2010
  50. 2010-Q3

    Paychex Quarterly Report for Q3 Ended Feb 28, 2010

    Paychex, Inc. reported results for the third quarter and nine months ended February 28, 2010 (fiscal 2010). Total revenue for the third quarter fell 4% to $507.8 million, and net income decreased 14% to $112.0 million, or $0.31 per diluted share. For the nine months, total revenue was $1.50 billion, down 5%, and net income was $361.5 million, down 14%, or $1.00 per diluted share. Results were pressured by weak economic conditions that reduced the client base (down 2.1% since May 31, 2009) and checks per client (down 2.2% in the quarter), along with a 32% decline in interest on funds held for clients for the nine months. Operating income fell 15% in the third quarter to $168.2 million, which includes an $18.7 million expense charge to increase the litigation reserve. The company reported that its key indicators improved sequentially through fiscal 2010, and it highlighted growth in Human Resource Services revenue, which rose 3% to $135.5 million in the quarter. Management stated the company had cash and total corporate investments of $689.1 million and no debt as of February 28, 2010. Fiscal 2010 guidance was unchanged from the prior quarter, projecting net income to decline 10% to 12%. The filing also discloses that the California Court of Appeal upheld a Rapid Payroll licensee judgment totaling $15.0 million in compensatory damages and $11.0 million in punitive damages, which the company will satisfy. The company stated that resolution of outstanding legal matters is not expected to have a material adverse effect on its financial position or results of operations.

    Mar 24, 2010