Breaking News

U.S. May Home Prices Rise 0.4% From Previous Month: FHFA
Tweet TWEET

ADP Reports Second Quarter Fiscal 2013 Results

ADP Reports Second Quarter Fiscal 2013 Results

                Confirms Fiscal 2013 Revenue and EPS Guidance

                         Revenues Rise 7%, 6% Organic

EPS From Continuing Operations Declined 5%, Increased 7% Excluding Prior Year
                                     Gain

ROSELAND, N.J., Feb. 5, 2013 (GLOBE NEWSWIRE) -- ADP^® (Nasdaq:ADP) reported
revenue growth of 7%, 6% organic, to $2.7 billion for the second fiscal
quarter ended December 31, 2012, Carlos Rodriguez, president and chief
executive officer, announced today. The second quarter of fiscal 2012 included
a pretax gain of $66 million, $41 million after tax, on a sale of assets. As
reported, including the gain, pretax earnings from continuing operations
decreased 8% and pretax margin declined 320 basis points.Net earnings from
continuing operations decreased 6% and diluted earnings per share from
continuing operations of $0.72 decreased 5% from $0.76 a year ago on fewer
shares outstanding.

Excluding the prior year gain, pretax earnings from continuing operations
increased 4%, pretax margin declined 60 basis points, net earnings from
continuing operations increased 6%, and diluted earnings per share from
continuing operations of $0.72 increased 7% from $0.67 a year ago.Fiscal
year-to-date through February 1, 2013 ADP acquired 5.9 million shares of its
stock for treasury at a cost of $341 million.Cash and marketable securities
were $1.5 billion at December 31, 2012.

Second Quarter Discussion

Commenting on the results, Mr. Rodriguez said, "I am pleased with ADP's second
quarter results. Our business segments performed well driving solid revenue
growth and pretax margin expansion.Combined worldwide new business bookings
for Employer Services and PEO Services grew 5%.With 9% growth in new business
bookings through the first half of the fiscal year, we are on track to achieve
our full year outlook of 8% to 10% growth.

"Previously communicated challenges and tough comparisons we faced heading
into the quarter affected the company's results, including:

  *The gain on a sale of assets in the prior year second quarter negatively
    impacted growth in pretax earnings from continuing operations 12%, pretax
    margin 260 basis points, and diluted earnings per share from continuing
    operations $0.08, or 12%.
  *Unfavorable foreign exchange rates negatively impacted revenue growth 0.5%
    with minimal impact on earnings.
  *The decline in high-margin interest revenues due to the lower average
    yield on client funds balances negatively impacted revenue growth 1%,
    partially offset by growth in average client funds balances.The client
    funds extended investment strategy, which is primarily driven by interest
    on client funds, negatively impacted growth in pretax earnings from
    continuing operations 4%, pretax margin 110 basis points, and diluted
    earnings per share from continuing operations $0.03, or 4%.
  *Foregone revenues and earnings related to the fiscal 2012 second quarter
    sale of assets and the expiration of certain employment tax credits within
    our Tax Credit Services business negatively impacted revenue growth 1%,
    growth in pretax earnings from continuing operations 2%, pretax margin 30
    basis points, and diluted earnings per share nearly $0.02, or 3%.
  *Fiscal 2012 acquisitions contributed 1% to total revenue growth and
    negatively impacted pretax margins 20 basis points with minimal impact on
    earnings.

Employer Services

"Employer Services' revenues grew 7% for the second quarter, 6% organically,
compared to last year's second quarter.The number of employees on our
clients' payrolls in the United States increased 2.6% for the quarter as
measured on a same-store-sales basis for our clients on our AutoPay
platform.Worldwide client retention increased 0.8 percentage points compared
with a year ago.As anticipated, Employer Services' pretax margin expanded 70
basis points for the quarter including a 50 basis point drag from fiscal 2012
acquisitions.Increased operating scale and sales efficiencies contributed to
the pretax margin improvement.

PEO Services

"PEO Services' revenues increased 13% for the second quarter, all organic,
compared to last year's second quarter. PEO Services' pretax margin increased
40 basis points for the quarter due to an easier year-over-year comparison and
slower growth in pass-through costs.Average worksite employees paid by PEO
Services increased 10% for the quarter to approximately 276,000.

Dealer Services

"Dealer Services' revenues grew 11% for the second quarter, 9% organically,
compared to last year's second quarter.Organic revenues benefited from
increased advertising in Digital Marketing and increased software license fees
in our international business.Dealer Services' pretax margin improved 180
basis points for the quarter benefiting from increased operating scale and an
increase in certain non-recurring high-margin revenues.

Interest on Funds Held for Clients

"The safety, liquidity, and diversification of our clients' funds are the
foremost objectives of our investment strategy. Client funds are invested in
accordance with ADP's prudent and conservative investment guidelines and the
credit quality of the investment portfolio is predominantly AAA/AA.

"For the second quarter, interest on funds held for clients declined $16.2
million, or 14%, from $117.9 million a year ago to $101.7 million, due to a
decline of about 60 basis points in the average interest yield to 2.4%,
partially offset by an increase of 9% in average client funds balances from
$15.6 billion to $17.0 billion.

Discontinued Operations

"On December 17, 2012, ADP completed the sale of the Taxware Enterprise
Service business (Taxware) which was previously reported within the Employer
Services segment.Taxware generated $50 million in revenues and approximately
$0.02 of earnings per share in fiscal 2012.The results of operations for this
business are reported within discontinued operations in the fiscal 2013 and
2012 results within this release. ADP recorded a net gain on the sale of
$58.8 million, or $36.7 million after tax, within discontinued operations in
the second quarter of fiscal 2013.

Fiscal 2013 Forecast

"Our fiscal 2013 forecasts assume no changes in the current economic
environment.We have maintained our guidance for total company revenue and
earnings per share growth and we continue to anticipate driving good pretax
margins in the business segments, although we anticipate a decline in total
ADP pretax margin. Our forecasts continue to be impacted by a lower expected
average yield on the client funds portfolio due to continued low market
interest rates, and tough year-over-year comparisons from certain fiscal 2012
items as detailed in the tables below. We continue to anticipate an
improvement in the effective tax rate of approximately 30 basis points from
34.5% last year.Our forecasts exclude the results of discontinued operations.

Revenues - We continue to anticipate 5% - 7% growth.

Impacts to Revenue Growth             Fiscal 2013 Year-to-date Q3      Q4
                                      Forecast    through Q2
Client Funds Interest Revenues        (1%)       (1%)         (1%)    (1%)
Foregone revenues related to Q2 FY12
sale of assets & expiration of tax    (0.5%)      (1%)         none    none
credits
Foreign Exchange Rates                up to (1%)  ~ (1%)      minimal minimal
Fiscal 2012 Acquisitions              ~1%         ~2%          ~1%     none

Pretax margins – We anticipate a decline of about 30 to 40 basis points from
19.2% last year which excludes the gain recorded in the second quarter of
fiscal 2012.

Impacts to Pretax Margin        Fiscal 2013 Year-to-date Q3         Q4
Decline                         Forecast    through Q2
Client Funds Extended           (110) bps   ~(100) bps   ~(100) bps ~(120) bps
Investment Strategy
Foregone revenues & earnings
related to Q2 FY12 sale of      (20) bps    (40) bps     none       none
assets & expiration of tax
credits
Fiscal 2012 Acquisitions        (20) bps    (30) bps     (20) bps   none

Diluted earnings per share from continuing operations – We continue to
anticipate 5% - 7% growth compared to $2.72 in fiscal 2012, which excludes the
gain recorded in the second quarter of fiscal 2012.

Impacts to Diluted Earnings per     Fiscal 2013 Year-to-date Q3       Q4
Share Growth                        Forecast    through Q2
Client Funds Extended Investment    ($0.12)     ($0.06)      ~($0.03) ~($0.03)
Strategy
Foregone earnings related to Q2
FY12 sale of assets & expiration of ($0.04)     ($0.04)      none     none
tax credits
Foreign Exchange Rates              minimal     minimal      minimal  minimal
Fiscal 2012 Acquisitions            minimal     minimal      minimal  none

"The impacts noted above from the expected drag from fiscal 2012 acquisitions
as well as the negative year-over-year comparisons from the fiscal 2012 second
quarter sale of assets and the expiration of certain employment tax credits
within our Tax Credit Services business are reflected in the segment forecasts
provided below.

  *Employer Services – revenue growth of 6% to 7% with pretax margin
    expansion of at least 50 basis points

    *Pays per control – up 2.0% to 3.0% for the year

  *PEO Services – revenue growth of 12% to 13% with slight pretax margin
    expansion
  *Employer Services and PEO Services new business sales – 8% to 10% growth
    compared to over $1.2 billion sold in fiscal 2012
  *Dealer Services – revenue growth of 8% to 9%, with pretax margin expansion
    of over 100 basis points

"The interest assumptions in our forecasts are based on Fed Funds futures
contracts and forward yield curves as of February 1, 2013. The Fed Funds
futures contracts used in the client short and corporate cash interest income
forecasts do not anticipate any changes during the fiscal year in the Fed
Funds target rate.The three-and-a-half and five-year U.S. government agency
rates based on the forward yield curves as of February 1, 2013 were used to
forecast new purchase rates for the client extended, corporate extended, and
client long portfolios, respectively.

  *Interest on funds held for clients is expected to decline about $75
    million, or 15%, from $493.3 million in fiscal 2012 to about $420
    million.This forecast is based on a decline of about 60 basis points in
    the expected average interest yield to 2.2%, partially offset by 5% to 7%
    anticipated growth in average client funds balances to $18.8 to $19.1
    billion.
  *Interest income on corporate funds is expected to decline approximately
    $20 million from $85.2 million in fiscal 2012.Included in interest income
    on corporate funds is interest income related to the extended investment
    strategy, which is expected to decline about $10 million to approximately
    $55 million.
  *In combination, we expect the total impact related to the client funds
    extended investment strategy to be a decline of $85 to $90 million from
    $556 million in fiscal 2012.Our prior forecast anticipated a decline of
    $80 to $85 million.

"I am cautious as economic growth continues to lag historic levels, but I am
pleased with our solid execution in our businesses. I am confident that ADP
is well positioned to navigate the uncertainty of the global economy.As a
leading global Human Capital Management solutions provider we are focused on
successfully executing against our four strategic pillars for growth.Driving
product innovation and enhancing our distribution and service capabilities are
the right things to do to continue to grow the business long-term," Mr.
Rodriguez concluded.

Website Schedules

The schedules of quarterly and full-year revenue and pretax earnings by
reportable segment for fiscal years 2011, 2012, and 2013 have been updated for
the second quarter of fiscal 2013 and to reflect the impact of discontinued
operations.These schedules also include a statement of consolidated earnings
for fiscal 2012 and each quarter restated for discontinued operations and are
posted to the Investor Relations home page
(http://www.investquest.com/iq/a/adp/index.htm) of our website www.ADP.com
under Reportable Segments Financial Data.

An analyst conference call will be held today, Tuesday, February 5 at 8:30
a.m. EST. A live webcast of the call will be available to the public on a
listen-only basis.To listen to the webcast and view the slide presentation,
go to ADP's home page,www.ADP.com, or ADP's Investor Relations home page,
http://www.investquest.com/iq/a/adp/index.htm, and click on the webcast icon.
Please note, this webcast will be broadcast in two streams: Windows Media and
Flash.You may switch streams by selecting "Windows Media" or "Flash" from the
gear-setup symbol located to the right-hand side of the volume control on the
webcast player.Please check your system 10 minutes prior to the webcast.The
presentation will be available to download and print about 60 minutes before
the webcast at the ADP Investor Relations home page at
http://www.investquest.com/iq/a/adp/index.htm.ADP's news releases, current
financial information, SEC filings and Investor Relations presentations are
accessible at the same website.

About ADP

ADP ^ ® (Nasdaq:ADP), with more than $10 billion in revenues and approximately
600,000 clients, is one of the world's largest providers of business
outsourcing solutions. Leveraging over 60 years of experience, ADP offers a
wide range ofhuman resource,payroll,tax andbenefits administration
solutionsfrom a single source. ADP's easy-to-use solutions for employers
provide superior value to companies of all types and sizes. ADP is also a
leading provider of integrated computing solutions toauto, truck, motorcycle,
marine, recreational vehicle, and heavy equipment dealersthroughout the
world. For more information about ADP or to contact a local ADP sales office,
reach us at 1.800.225.5237 or visit the company's website atwww.ADP.com.

Automatic Data Processing, Inc. and Subsidiaries
Statements of Consolidated Earnings
(In millions, except per share amounts)
(Unaudited)
                                                              
                         Three Months Ended         Six Months Ended
                         December 31,              December 31,
                         2012          2011         2012         2011
Revenues:                                                      
Revenues, other than
interest on funds held    $2,183.4    $2,041.7   $4,265.3   $4,032.8
for clients and PEO
revenues
Interest on funds held    101.7        117.9       208.4       239.8
for clients
PEO revenues (A)          462.7        411.1       911.6       809.0
Total revenues            2,747.8      2,570.7     5,385.3     5,081.6
                                                              
Expenses:                                                      
Costs of revenues:                                             
Operating expenses        1,401.6      1,304.2     2,769.1     2,593.9
Systems development &     159.9        147.3       316.2       295.2
programming costs
Depreciation &            62.8         62.2        125.6       125.0
amortization
Total costs of revenues   1,624.3      1,513.7     3,210.9     3,014.1
                                                              
Selling, general &        624.7        574.9       1,236.1     1,161.8
administrative expenses
Interest expense          3.0          2.1         6.1         4.2
Total expenses            2,252.0      2,090.7     4,453.1     4,180.1
                                                              
Other income, net (B)     (33.0)       (96.2)      (62.2)      (130.4)
                                                              
Earnings from continuing
operations before income  528.8        576.2       994.4       1,031.9
taxes
                                                              
Provision for income      176.8        203.4       340.0       358.7
taxes
                                                              
Net earnings from         $352.0      $372.8     $654.4     $673.2
continuing operations
                                                              
Earnings from
discontinued operations   62.3         3.5         66.8        7.1
before income taxes
                                                              
Provision for income      23.4         1.3         25.1        2.6
taxes
                                                              
Net earnings from         $38.9       $2.2       $41.7      $4.5
discontinued operations
                                                              
Net earnings              $390.9      $375.0     $696.1     $677.7
                                                              
Basic Earnings Per Share
from Continuing           $0.73       $0.77      $1.36      $1.38
Operations
Basic Earnings Per Share
from Discontinued         0.08         --         0.09        0.01
Operations
Basic Earnings Per Share  $0.81       $0.77      $1.44      $1.39
                                                              
Diluted Earnings Per
Share from Continuing     $0.72       $0.76      $1.34      $1.37
Operations
Diluted Earnings Per
Share from Discontinued   0.08         --         0.09        0.01
Operations
Diluted Earnings Per      $0.80       $0.76      $1.43      $1.38
Share
                                                              
Dividends declared per    $0.4350     $0.3950    $0.8300    $0.7550
common share
                                                              
(A) Professional Employer Organization ("PEO") revenues are net of direct
pass-through costs, primarily consisting of payroll wages and payroll taxes,
of $5,410.9 and $4,810.4 for the three months ended December 31, 2012 and
2011, respectively, and $9,936.7 and $8,745.7 for the six months ended
December 31, 2012 and 2011, respectively.
(B) The three and six months ended December 31, 2011 include a $66.0 gain on
the sale of assets related to rights and obligations to resell a third-party
expense management platform.



Automatic Data Processing, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
                                          December 31,       June 30,
                                          2012               2012
Assets                                                       
Cash and cash equivalents/Short-term       $1,434.8         $1,578.5
marketable securities (C)
Other current assets                       2,358.6           2,030.0
Assets of discontinued operations          --               125.0
Total current assets before funds held for 3,793.4           3,733.5
clients
                                                            
Funds held for clients                     23,759.0          21,539.1
Total current assets                       27,552.4          25,272.6
                                                            
Long-term marketable securities            82.4              86.9
Property, plant and equipment, net         712.9             706.3
Other non-current assets                   4,982.3           4,751.6
Total assets                               $33,330.0        $30,817.4
                                                            
Liabilities and Stockholders' Equity                         
Other current liabilities                  $2,360.3         $2,367.5
Obligations under reverse repurchase       13.5              --
agreements
Liabilities of discontinued operations     --               29.0
Client funds obligations                   23,064.7          20,856.2
Total current liabilities                  25,438.5          23,252.7
                                                            
Long-term debt                             15.8              16.8
Other non-current liabilities              1,480.4           1,433.9
Total liabilities                          26,934.7          24,703.4
                                                            
Total stockholders' equity                 6,395.3           6,114.0
Total liabilities and stockholders' equity $33,330.0        $30,817.4
                                                            
(C) As of December 31, 2012, $13.4 million of Short-term marketable securities
and $0.1 million of Cash and cash equivalents have been pledged as collateral
under reverse repurchase agreements.



Automatic Data Processing, Inc. and Subsidiaries
Consolidated Statement of Adjusted / Non-GAAP Financial Information
(In millions, except per share amounts)
(Unaudited)
                                                             
The following table reconciles the Company's results for the three and six
months ended December 31, 2011 to adjusted results that exclude the sale of
assets related to rights and obligations to resell a third-party expense
management platform. The Company uses certain adjusted results, among other
measures, to evaluate the Company's operating performance in the absence of
certain items and for planning and forecasting of future periods. The Company
believes that the adjusted results provide relevant and useful information for
investors because it allows investors to view performance in a manner similar
to the method used by the Company's management and improves their ability to
understand the Company's operating performance.Since adjusted earnings and
adjusted diluted EPS are not measures of performance calculated in accordance
with U.S. GAAP, they should not be considered in isolation from, or as a
substitute for, earnings and diluted EPS and they may not be comparable to
similarly titled measures employed by other companies.
                                                             
                Three Months Ended December 31, 2011
                Earnings from                                 Diluted EPS
                                                                 from
                continuing       Provision for   Net earnings   continuing
                 operations                       from
                before income    income taxes    continuing     operations
                 taxes                            operations
                                                             
As Reported      $576.2         $203.4        $372.8       $0.76
                                                             
Less Adjustments:                                              
Gain on sale of  66.0            24.8           41.2          0.08
assets
                                                             
As Adjusted      $510.2         $178.6        $331.6       $0.67
                                                             
                                                             
                Six months ended December 31, 2011
                Earnings from                                 Diluted EPS
                                                                 from
                continuing       Provision for   Net earnings   continuing
                 operations                       from
                before income    income taxes    continuing     operations
                 taxes                            operations
                                                             
As Reported      $1,031.9       $358.7        $673.2       $1.37
                                                             
Less Adjustments:                                              
Gain on sale of  66.0            24.8           41.2          0.08
assets
                                                             
As Adjusted      $965.9         $333.9        $632.0       $1.28



Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data
(Dollars in millions, except per share amounts)
(Unaudited)
                             Three Months Ended                     
                             December 31,                           
                             2012            2011        Change      % Change
Revenues from continuing                                           
operations (D)
Employer Services             $1,907.7      $1,782.0  $125.7    7%
PEO Services                  465.7          413.8      51.9       13%
Dealer Services               449.8          406.9      42.9       11%
Other                         (75.4)         (32.0)     (43.4)     n/m
                             $2,747.8      $2,570.7  $177.1    7%
Pre-tax earnings from                                              
continuing operations (D)
Employer Services             $485.0        $441.0    $44.0     10%
PEO Services                  49.8           42.5       7.3        17%
Dealer Services               86.2           70.7       15.5       22%
Other (E)                     (92.2)         22.0       (114.2)    n/m
                             $528.8        $576.2    $(47.4)   (8)%
Pre-tax margin (D)                                                 
Employer Services             25.4%           24.7%       0.7%        
PEO Services                  10.7%           10.3%       0.4%        
Dealer Services               19.2%           17.4%       1.8%        
Other                         n/m             n/m         n/m         
                             19.2%           22.4%       (3.2)%     
                                                                  
                             Six Months Ended                       
                             December 31,                           
                             2012            2011        Change      % Change
Revenues (D)                                                       
Employer Services             $3,726.7      $3,490.9  $235.8    7%
PEO Services                  917.6          814.4      103.2      13%
Dealer Services               889.6          809.5      80.1       10%
Other                         (148.6)        (33.2)     (115.4)    n/m
                             $5,385.3      $5,081.6  $303.7    6%
Pre-tax earnings (D)                                               
Employer Services             $906.8        $848.2    $58.6     7%
PEO Services                  96.0           79.1       16.9       21%
Dealer Services               162.2          134.1      28.1       21%
Other (E)                     (170.6)        (29.5)     (141.1)    n/m
                             $994.4        $1,031.9  $(37.5)   (4)%
Pre-tax margin (D)                                                 
Employer Services             24.3%           24.3%       0.0%        
PEO Services                  10.5%           9.7%        0.7%        
Dealer Services               18.2%           16.6%       1.7%        
Other                         n/m             n/m         n/m         
                             18.5%           20.3%       (1.8)%     
                                                                  
(D) Prior year's segment results were adjusted to reflect fiscal year 2013
budgeted foreign exchange rates.
                                                                     
(E)The three and six months ended December 31, 2011 include a $66.0 gain on
the sale of assets related to rights and obligations to resell a third-party
expense management platform.
                                                                  
n/m - not meaningful                                               
                                                                  
                             Three Months Ended                     
                             December 31,                Change in   
                                                          other
                             2012            2011        income, net 
Components of other income,                                        
net:
Interest income on corporate  $(21.5)       $(27.2)   $(5.7)    
funds
Realized gains on             (9.8)          (14.8)     (5.0)      
available-for-sale securities
Realized losses on            0.5            6.6        6.1        
available-for-sale securities
Impairment losses on          --            5.8        5.8        
available-for-sale securities
Gains on sales of buildings   (2.2)          --        2.2        
Gain on sale of assets        --            (66.0)     (66.0)     
Other, net                    --            (0.6)      (0.6)      
Total other income, net       $(33.0)       $(96.2)   $(63.2)   
                                                                  
                             Six Months Ended                       
                             December 31,                Change in   
                                                          other
                             2012            2011        income, net 
Components of other income,                                        
net:
Interest income on corporate  $(45.3)       $(56.8)   $(11.5)   
funds
Realized gains on             (14.6)         (19.1)     (4.5)      
available-for-sale securities
Realized losses on            0.8            6.9        6.1        
available-for-sale securities
Impairment losses on          --            5.8        5.8        
available-for-sale securities
Gains on sales of buildings   (2.2)          --        2.2        
Gain on sale of assets        --            (66.0)     (66.0)     
Other, net                    (0.9)          (1.2)      (0.3)      
Total other income, net       $(62.2)       $(130.4)  $(68.2)   
                                                                  
                                                                  
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts or where otherwise stated)
(Unaudited)
                             Three Months Ended                     
                             December 31,                           
                             2012            2011        Change      % Change
Earnings per share                                                 
information:
Net earnings from continuing  $352.0        $372.8    $(20.8)   (6)%
operations
Net earnings                  $390.9        $375.0    $15.9     4%
Basic weighted average shares 482.1          486.7      (4.6)      (1)%
outstanding
Basic earnings per share from $0.73         $0.77     $(0.04)   (5)%
continuing operations
Basic earnings per share      $0.81         $0.77     $0.04     5%
                                                                  
Net earnings from continuing  $352.0        $372.8    $(20.8)   (6)%
operations
Net earnings                  $390.9        $375.0    $15.9     4%
Diluted weighted average      486.8          492.4      (5.6)      (1)%
shares outstanding
Diluted earnings per share    $0.72         $0.76     $(0.04)   (5)%
from continuing operations
Diluted earnings per share    $0.80         $0.76     $0.04     5%
                                                                  
                             Six Months Ended                       
                             December 31,                           
                             2012            2011        Change      % Change
Earnings per share                                                 
information:
Net earnings from continuing  $654.4        $673.2    $(18.8)   (3)%
operations
Net earnings                  $696.1        $677.7    $18.4     3%
Basic weighted average shares 482.8          487.3      (4.5)      (1)%
outstanding
Basic earnings per share from $1.36         $1.38     $(0.02)   (1)%
continuing operations
Basic earnings per share      $1.44         $1.39     $0.05     4%
                                                                  
Net earnings from continuing  $654.4        $673.2    $(18.8)   (3)%
operations
Net earnings                  $696.1        $677.7    $18.4     3%
Diluted weighted average      487.7          492.8      (5.1)      (1)%
shares outstanding
Diluted earnings per share    $1.34         $1.37     $(0.03)   (2)%
from continuing operations
Diluted earnings per share    $1.43         $1.38     $0.05     4%
                                                                  
                             Three Months Ended                     
                             December 31,                           
                             2012            2011                   
Key Statistics:                                                    
Internal revenue growth:                                           
Employer Services             6%              5%                     
PEO Services                  13%             16%                    
Dealer Services               9%              7%                     
                                                                  
Employer Services:                                                 
Change in pays per control -  2.6%            2.8%                   
AutoPay product
Change in client revenue
retention percentage -        0.8 pts         (0.5) pts              
worldwide
Employer Services/PEO new
business sales growth -       5%              14%                    
worldwide
                                                                  
PEO Services:                                                      
Paid PEO worksite employees   278,000        253,000               
at end of period
Average paid PEO worksite     276,000        251,000               
employees during the period
                                                                  
                             Six Months Ended                       
                             December 31,                           
                             2012            2011                   
Key Statistics:                                                    
Internal revenue growth:                                           
Employer Services             5%              6%                     
PEO Services                  13%             16%                    
Dealer Services               8%              6%                     
                                                                  
Employer Services:                                                 
Change in pays per control -  2.9%            2.8%                   
AutoPay product
Change in client revenue
retention percentage -        0.2 pts         (0.2) pts              
worldwide
Employer Services/PEO new
business sales growth -       9%              11%                    
worldwide
                                                                  
PEO Services:                                                      
Paid PEO worksite employees   278,000        253,000               
at end of period
Average paid PEO worksite     272,000        247,000               
employees during the period
                                                                  
                                                                  
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts or where otherwise stated)
(Unaudited)
                             Three Months Ended                     
                             December 31,                           
                             2012            2011        Change      % Change
Average investment balances                                        
at cost (in billions):
Corporate, other than         $1.1          $1.3      $(0.1)    (11)%
corporate extended
Corporate extended            4.2            3.6        0.6        16%
Total corporate               5.3            4.8        0.4        9%
Funds held for clients        17.0           15.6       1.4        9%
Total                         $22.3         $20.4     $1.9      9%
                                                                  
Average interest rates earned exclusive of                          
realized losses (gains) on:
Corporate, other than         0.7%            0.9%                   
corporate extended
Corporate extended            1.8%            2.6%                   
Total corporate               1.6%            2.2%                   
Funds held for clients        2.4%            3.0%                   
Total                         2.2%            2.8%                   
                                                                  
Net unrealized gain position  $717.8        $685.1               
at end of period
                                                                  
Average short-term financing                                       
(in billions):
U.S. commercial paper         $3.7          $3.3                 
borrowings
U.S. & Canadian reverse
repurchase agreement          0.4            0.3                   
borrowings
                             $4.2          $3.6                 
                                                                  
Average interest rates paid                                        
on:
U.S. commercial paper         0.2%            0.1%                   
borrowings
U.S. & Canadian reverse
repurchase agreement          0.7%            0.7%                   
borrowings
                                                                  
                                                                  
Interest on funds held for    $101.7        $117.9    $(16.2)   (14)%
clients
Corporate extended interest   19.4           23.5       (4.1)      (17)%
income (F)
Corporate interest
expense-short-term financing  (2.6)          (1.4)      (1.2)      (90)%
(F)
                             $118.5        $140.0    $(21.6)   (15)%
                                                                  
                             Six Months Ended                       
                             December 31,                           
                             2012            2011        Change    % Change
Average investment balances                                        
at cost (in billions):
Corporate, other than         $1.2          $1.3      $(0.1)    (11)%
corporate extended
Corporate extended            4.0            3.5        0.4        12%
Total corporate               5.1            4.9        0.3        6%
Funds held for clients        16.5           15.4       1.2        8%
Total                         $21.7         $20.2     $1.4      7%
                                                                  
Average interest rates earned
exclusive of realized losses                                       
(gains) on:
Corporate, other than         0.8%            0.9%                   
corporate extended
Corporate extended            2.0%            2.8%                   
Total corporate               1.8%            2.3%                   
Funds held for clients        2.5%            3.1%                   
Total                         2.3%            2.9%                   
                                                                  
Net unrealized gain position  $717.8        $685.1               
at end of period
                                                                  
Average short-term financing                                       
(in billions):
U.S. commercial paper         $3.5          $3.2                 
borrowings
U.S. & Canadian reverse
repurchase agreement          0.5            0.4                   
borrowings
                             $4.0          $3.5                 
                                                                  
Average interest rates paid                                        
on:
U.S. commercial paper         0.2%            0.1%                   
borrowings
U.S. & Canadian reverse
repurchase agreement          0.7%            0.5%                   
borrowings
                                                                  
                                                                  
Interest on funds held for    $208.4        $239.8    $(31.4)   (13)%
clients
Corporate extended interest   40.6           49.1       (8.5)      (17)%
income (F)
Corporate interest
expense-short-term financing  (5.1)          (2.8)      (2.3)      (80)%
(F)
                             $243.9        $286.1    $(42.2)   (15)%
                                                                  
(F)While "Corporate extended interest income" and "Corporate interest expense
-short-term financing" are non-GAAP disclosures, management believes this
information is beneficial to reviewing the financial statements of ADP.
Management believes this information is beneficial as it allows the reader to
understand the extended investment strategy for ADP's client funds assets,
corporate investments and short-term borrowings.A reconciliation of the
non-GAAP measures to GAAP measures is as follows:
                                                                  
                                                                  
Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts or where otherwise stated)
(Unaudited)
                             Three Months Ended                     
                             December 31,                           
                             2012            2011                   
                                                                  
Corporate extended interest   $19.4         $23.5                
income
All other interest income     2.1            3.7                   
Total interest income on      $21.5         $27.2                
corporate funds
                                                                  
Corporate interest expense -  $2.6          $1.4                 
short-term financing
All other interest expense    0.4            0.7                   
Total interest expense        $3.0          $2.1                 
                                                                  
                             Six Months Ended                       
                             December 31,                           
                             2012            2011                   
                                                                  
Corporate extended interest   $40.6         $49.1                
income
All other interest income     4.7            7.7                   
Total interest income on      $45.3         $56.8                
corporate funds
                                                                  
Corporate interest expense -  $5.1          $2.8                 
short-term financing
All other interest expense    1.0            1.4                   
Total interest expense        $6.1          $4.2                 

This document and other written or oral statements made from time to time by
ADP may contain "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not historical
in nature and which may be identified by the use of words like "expects,"
"assumes," "projects," "anticipates," "estimates," "we believe," "could be"
and other words of similar meaning, are forward-looking statements. These
statements are based on management's expectations and assumptions and are
subject to risks and uncertainties that may cause actual results to differ
materially from those expressed. Factors that could cause actual results to
differ materially from those contemplated by the forward-looking statements
include: ADP's success in obtaining, retaining and selling additional services
to clients; the pricing of products and services; changes in laws regulating
payroll taxes, professional employer organizations and employee benefits;
overall market and economic conditions, including interest rate and foreign
currency trends; competitive conditions; auto sales and related industry
changes; employment and wage levels; changes in technology; availability of
skilled technical associates and the impact of new acquisitions and
divestitures. ADP disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise. These risks and uncertainties, along with the risk factors
discussed under "Item 1A. - Risk Factors" in our Annual Report on Form 10-K
for the fiscal year ended June 30, 2012 should be considered in evaluating any
forward-looking statements contained herein.

CONTACT: ADP Investor Relations
         Elena Charles, 973.974.4077
         Debbie Morris, 973.974.7821