ADP

Automatic Data Processing, Inc. (ADP)

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Automatic Data Processing (ADP)

Q1 2013 Earnings Call

November 01, 2012 8:30 am ET

Executives

Elena Charles

Carlos A. Rodriguez - Chief Executive Officer, President and Director

Christopher R. Reidy - Chief Financial Officer and Corporate Vice President

Analysts

David Togut - Evercore Partners Inc., Research Division

Paul B. Thomas - Goldman Sachs Group Inc., Research Division

David M. Grossman - Stifel, Nicolaus & Co., Inc., Research Division

Gary E. Bisbee - Barclays Capital, Research Division

Jeffrey M. Silber - BMO Capital Markets U.S.

James Macdonald - First Analysis Securities Corporation, Research Division

Ashish Sabadra - Deutsche Bank AG, Research Division

Jason Kupferberg - Jefferies & Company, Inc., Research Division

Jeffrey Rossetti - Janney Montgomery Scott LLC, Research Division

Joseph D. Foresi - Janney Montgomery Scott LLC, Research Division

Sara Gubins - BofA Merrill Lynch, Research Division

Mark S. Marcon - Robert W. Baird & Co. Incorporated, Research Division

Timothy McHugh - William Blair & Company L.L.C., Research Division

Michael J. Baker - Raymond James & Associates, Inc., Research Division

Tien-Tsin T. Huang - JP Morgan Chase & Co, Research Division

James E. Friedman - Susquehanna Financial Group, LLLP, Research Division

Presentation

Operator

Good morning. My name is Christie, and I will be your conference operator. At this time, I would like to welcome everyone to ADP's First Quarter Fiscal 2013 Earnings Webcast. I would like to inform you that this conference is being recorded.

[Operator Instructions] After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions]

I would now turn the conference over to Ms. Elena Charles, Vice President, Investor Relations. Please go ahead.

Elena Charles

Thank you. I am here today with Carlos Rodriguez, ADP's President and Chief Executive Officer; and Chris Reidy, ADP's Chief Financial Officer. Thank you for joining us for our first quarter fiscal 2013 earnings call and webcast. Our slide presentation for today's call and webcast is available for you to print from the Investor Relations homepage of our website at adp.com.

As a reminder, the quarterly history of revenue and pretax earnings for our reportable segments have also been posted to the Investor Relations section of our website. These schedules have been updated to include the first quarter of fiscal 2013, and all prior periods have been updated to reflect fiscal 2013 budgeted foreign exchange rate and the impact of discontinued operations.

During today's conference call, we will make some forward-looking statements that refer to future events and as such, involve some risks. And these are discussed on Page 2 of the slide presentation and in our periodic filings with the SEC.

With that, I'll now turn the call over to Carlos for his opening remarks.

Carlos A. Rodriguez

Thank you, Elena. Good morning, and thank you for joining us. For those of you joining who have been impacted by Hurricane Sandy, our thoughts are with you and we extend our best wishes for a speedy recovery.

ADP's headquarters and many of our other operations were in the path of the storm. I'm proud to say that when I visited 4 of our major facilities in New Jersey on both Monday and Tuesday of this week, all were operational, running on emergency generator power and with committed and dedicated associates who continued to make good on our obligations to our clients and our employees.

As all of you know, ADP pays 23 million people in the U.S. and 34 million people worldwide. And while the safety and security of our associates is our #1 priority, the last 3 days were another example of ADP's commitment to deliver. While there are obviously areas where courier deliveries are not yet possible, our associates worldwide are supporting each other, going above and beyond to make sure our clients and our employees don't have yet another challenge during difficult moments.

[Technical Difficulty]

Carlos A. Rodriguez

All right. Thanks for joining us again. As you can tell, we're still having some challenges with Hurricane Sandy. Apparently, our webcast is not functioning, but we are going to go ahead with the call since we have over 50 people on the call waiting for us. And then we will provide a recording of the call, as well as the slides that were in the webcast at a future date. I'm going to go through my opening comments again, and then we'll continue with the call. Thanks for your patience.

So as I was saying, for those of you joining who have been impacted by Hurricane Sandy, our thoughts are with you, and we extend our best wishes for a speedy recovery. ADP's headquarters and many of our other operations were in the path of the storm. I'm proud to say that when I visited 4 of our major facilities in New Jersey on both Monday and Tuesday this week, all were operational, running on emergency generator power and with committed and dedicated associates who continued to make good on our obligations to our clients and our employees.

As all of you know, ADP pays 23 million people in the U.S. and 34 million worldwide. And while the safety and security of our associates is our #1 priority, the last 3 days were another example of ADP's commitment to deliver.

While there are obviously areas where courier deliveries are not yet possible, our associates worldwide are supporting each other and going above and beyond to make sure our clients and our employees don't have yet another challenge during difficult moments.

Before we get started on the earnings discussion for the first quarter, I want to discuss the CFO transition we announced earlier this morning. As you read in the press release, we announced that Jan Siegmund is transitioning to the CFO role as Chris Reidy will be leaving ADP. As Elena just said, Chris is here with me today to discuss our first quarter earnings, and I want to take this opportunity to thank Chris for his many contributions over the 6 years he spent at ADP.

Chris and Jan will work together over the next few weeks to ensure an orderly transition. Jan will be joining our second quarter earnings call on February 5, though our plans are to have Jan meet many of you over the next several weeks before the next quarterly earnings call. Jan's background is in the press release, so I'm not going to go through all of that, but I want you to understand why Jan has been selected for this key role.

As Head of Strategy at ADP for 8 years now, Jan has been instrumental in developing the strategy for ADP's evolution from a payroll-centric company to a leading provider of a broad and diverse human capital management solutions. Jan's tenure and experience at ADP are enormous positives for ADP as we move forward to leverage the many opportunities ahead of us. So I hope you will all join me in wishing Chris well and in welcoming Jan to the CFO role.

Now let's turn to the first quarter results. After my opening remarks about the first quarter, I'll turn the call over to Chris who will take you through the highlights of the quarter. After which, I'll return to provide you with an update on our fiscal year 2013 forecast. And before we take your questions, I'll provide some concluding remarks.

Now let's turn to Slide 4. As you read in this morning's press release, ADP reported good results for fiscal 2013's first quarter. Total revenue growth of 5%, 3% organic, and 2% earnings per share growth from continuing operations were in line with the expectations we outlined for you back in August.

Read the rest of this transcript for free on seekingalpha.com