Paychex(PAYX)2024-12-19 21:04Financial Performance - For the three months ended November 30, 2024, revenue was 1,226.4 million in the prior year period[113]. - For the six months ended November 30, 2024, revenue was 2,479.7 million in the prior year[113]. - Adjusted net income for the three months ended November 30, 2024, was 506.2 million in the prior year[113]. - Adjusted diluted earnings per share for the three months ended November 30, 2024, was 1.08 in the prior year[113]. - Total revenue increased to 2.6 billion for the six months, reflecting increases of 5% and 4% respectively compared to the prior year periods[115]. - Management Solutions revenue was 1.9 billion for the six months, reflecting increases of 3% and 2% respectively[117]. - PEO and Insurance Solutions revenue was 637.2 million for the six months, reflecting increases of 7% for each period[118]. - Operating income increased 6% to 1.1 billion for the six months[123]. - Diluted earnings per share increased to 2.32 for the six months, reflecting increases of 6% and 4% respectively[1]. - EBITDA for the six months ended November 30, 2024, was 1,129.2 million for the same period in 2023[125]. - Net income for the three months ended November 30, 2024, was 392.7 million for the same period in 2023[125]. Equity and Investments - The company reported a 10% increase in total stockholders' equity to 320.2 million in the prior year[113]. - The company reported total corporate investments of 2.0 billion in unused capacity under its unsecured credit facilities as of November 30, 2024[126]. - The company has outstanding commitments to purchase approximately 24.1 million of a 6.2 billion, with 45% in short-term securities and 55% in AFS securities[161]. - The net unrealized losses on investment portfolios were 162.5 million as of May 31, 2024[162]. - The weighted-average yield-to-maturity for AFS securities was 3.1% as of November 30, 2024, compared to 3.0% as of May 31, 2024[163]. - Credit risk exposure includes 841.1 million from (163.2) million[143]. - Net cash used in investing activities increased to (109.7) million, a change of (776.4) million from (1,308.7) million[143]. - Cash dividends per common share increased to 1.78[143]. - The weighted-average interest rate on short-term borrowings was 8.22% for the 250 million PNC facility[131]. - The company anticipates that its cash flows and available financing will support business operations, capital purchases, and dividend payments for the foreseeable future[126]. Strategic Focus - The company aims to expand its leadership in HR and grow its client base through strategic acquisitions[109]. - The company is investing in technology and digital capabilities to capitalize on long-term growth opportunities[110]. - The company is focused on providing integrated technology and superior customer experiences to support small- and medium-sized businesses[109]. - The company utilizes its proprietary Paychex Flex® platform to support small-business clients and meet their complex payroll and employee benefit needs[107]. - The company is closely monitoring the evolving challenges faced by small- and mid-sized businesses to provide effective solutions[111]. Internal Controls and Compliance - The Company conducted an evaluation of its disclosure controls and procedures, concluding they were effective at a reasonable assurance level as of November 30, 2024[173]. - There were no changes in the Company's internal control over financial reporting during the fiscal quarter ended November 30, 2024, that materially affected its internal controls[174]. - The Company has a stock repurchase program authorized for up to 296.0 million remaining available for repurchases[175]. - The Company paid $0.5 million in federal excise tax for net share repurchases made during the fiscal year ended May 31, 2024[176].