paychex inc (PAYX) Key Developments
FirstMerit Partners with Paychex and SurePayroll to Broaden Payroll Solutions for Customers
Aug 25 15
FirstMerit Corporation announced that its wholly owned subsidiary FirstMerit Bank, N.A. is partnering with Paychex and its wholly owned subsidiary SurePayroll to provide a wide variety of payroll solutions to the bank's business and commercial customers. In addition to full-service payroll administration, customers can take advantage of time and labor management, HR administration, and insurance services (workers' compensation). FirstMerit Core Business Bankers will engage in joint calling efforts with Paychex representatives to provide holistic solutions to customers and prospects. In addition to the payroll services, this partnership also provides depository and lending solutions to help businesses operate and grow their business.
Paychex, Inc. Declares Regular Quarterly Dividend, Payable on August 20, 2015
Jul 9 15
Paychex, Inc. announced that its board of directors has declared an 11% increase in the company’s regular quarterly dividend. The dividend, increasing $0.04 from $0.38 per share to $0.42 per share, is payable on August 20, 2015 to shareholders of record August 3, 2015.
Paychex, Inc. Reports Consolidated Unaudited Earnings Results for the Fourth Quarter and Full Year Ended May 31, 2015; Provides Earnings Guidance for the Year Ending March 31, 2016
Jul 1 15
Paychex, Inc. reported consolidated unaudited earnings results for the fourth quarter and full year ended May 31, 2015. For the quarter, the company reported total revenue of $692.2 million against $639.0 million a year ago. Operating income was $251.6 million against $228.3 million a year ago. Income before income taxes was $253.6 million against $229.7 million a year ago. Net income was $161.2 million or $0.44 per diluted share compared to $145.9 million or $0.40 per diluted share a year ago.
For the year, the company reported total revenue of $2,739.6 million against $2,518.9 million a year ago. Operating income was $1,053.6 million against $982.7 million a year ago. Income before income taxes was $1,060.0 million against $988.1 million a year ago. Net income was $674.9 million or $1.85 per diluted share compared $627.5 million or $1.71 per diluted share a year ago. Net cash provided by operating activities was $895.2 million against $880.9 million a year ago. This increase was the result of higher net income adjusted for non-cash items, partially offset by the impact of fluctuations in working capital. Purchases of property and equipment were $102.8 million against $84.1 million a year ago. Purchases of other assets were $3.3 million against $11.3 million a year ago.
The company provided earnings guidance for the fiscal year ending May 31, 2016. The company expects payroll service revenue of 4% to 5%, HRS revenue of 10% to 13%, and total service revenue of 7% to 8% and net income of 8% to 9%. Operating income, net of certain items, as a % of total service revenue is expected to be approximately 38% for fiscal 2016. The effective income tax rate for fiscal 2016 is expected to be consistent with that experienced for fiscal 2015. Interest on funds held for clients for fiscal 2016 is expected to be relatively flat. Both HRS revenue and total service revenue reflect the minimum premium plan offering within the PEO the company will now have anniversary-ed, and it's going to be a compare year-over-year. So 10% to 13% on HRS. The company anticipates EPS to be comparable during each of the four quarters of the year. The timing of expenses during the year can change the pattern, as it sometimes does.
Paychex Is Looking For Acquisitions
Jul 1 15
Paychex, Inc. (NasdaqGS:PAYX) is looking for acquisitions. Martin Mucci, President and Chief Executive Officer of Paychex said " We look for client acquisitions, so client base, where we can grow our existing client bases. We look for some product tuck-ins, but we're in pretty good shape now where, we had focused a lot on that over the last few years. But we look at expanding any of the areas, so anywhere from payroll to 401(k) to PEO, across-the-board."
Paychex, Inc. Announces Paychex Flex Hiring, New Module for Cloud-Based Human Capital Management Platform
Jun 29 15
Paychex, Inc. announced Paychex Flex Hiring, the newest module for its cloud-based human capital management (HCM) platform, Paychex Flex, which delivers access to payroll, HR, and benefits information for a streamlined and integrated approach to workforce management. Paychex Flex Hiring gives employers access to recruiting, onboarding, and employee screening functions through the Paychex Flex platform for a seamless flow of information and data across the human capital management spectrum, and provides management with an end-to-end view of employee information throughout the employee lifecycle, from pre-hire engagement to retirement. Paychex Flex Hiring simplifies recruiting with an automated job-opening process that allows recruiters to post jobs to their unique career site, to job boards, and through social media. Flex Hiring provides advanced tools to qualify the applicant pool and manage the hiring workflow. With access to requisition approval and feedback portals, recruiters and hiring managers can further automate the hiring process with the ability to drive approval workflows, review job postings and applicants, provide feedback, and schedule interviews. The system also makes it easy for recruiters, managers, and applicants to interact throughout the entire hiring process by giving them the ability to modify and add content, forms, pictures, and other documents. With screening tools, employers can focus their recruiting efforts on the most qualified candidates with job-specific screening questionnaires, resume keyword searching and archiving, and scoring filters. The onboarding component of Paychex Flex Hiring helps create an efficient onboarding process through automation that reduces administrative tasks and costs, and helps employers create a positive new-hire experience that prepares employees for their first day of work and enables them to be productive more quickly. Through the onboarding system, employers have the ability to collect critical information electronically, including forms I-9 and W-4, and state withholding tax forms. They can also have new hires review and acknowledge the company handbook and corporate policies. It is up to each individual HR department to decide how much information they want to collect through the onboarding system. Employers can also personalize the experience with the ability to create a custom welcome letter and video, as well as share pictures of their new office and co-workers. At any time, employers can track where new hires are in the onboarding process and engage them if necessary.