Company Quick10K Filing
Paycom
Price206.40 EPS3
Shares58 P/E72
MCap12,054 P/FCF68
Net Debt-876 EBIT197
TEV11,178 TEV/EBIT57
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-04-30
10-K 2019-12-31 Filed 2020-02-13
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-02-14
10-Q 2018-09-30 Filed 2018-11-01
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-03
10-K 2017-12-31 Filed 2018-02-14
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-02
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-02-21
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-22
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-13
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-21
8-K 2020-08-04 Earnings, Exhibits
8-K 2020-06-05
8-K 2020-04-28
8-K 2020-04-27
8-K 2020-03-12
8-K 2020-02-05
8-K 2020-01-30
8-K 2019-10-29
8-K 2019-07-30
8-K 2019-04-30
8-K 2019-04-29
8-K 2019-04-15
8-K 2019-02-05
8-K 2019-01-17
8-K 2018-11-20
8-K 2018-10-30
8-K 2018-09-12
8-K 2018-07-30
8-K 2018-04-30
8-K 2018-04-27
8-K 2018-04-16
8-K 2018-02-20
8-K 2018-02-13
8-K 2018-02-12
8-K 2018-02-06
8-K 2018-01-26

PAYC 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-4.11 payc-ex411_704.htm
EX-4.12 payc-ex412_703.htm
EX-31.1 payc-ex311_13.htm
EX-31.2 payc-ex312_14.htm
EX-32.1 payc-ex321_8.htm

Paycom Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
2.11.71.30.80.40.02014201620182020
Assets, Equity
0.20.10.10.0-0.0-0.12014201620182020
Rev, G Profit, Net Income
0.50.30.1-0.1-0.3-0.52014201620182020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

(Mark One) 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number: 001-36393

 

Paycom Software, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

80-0957485

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

7501 W. Memorial Road

Oklahoma City, Oklahoma 73142

(Address of principal executive offices, including zip code)

(405) 722-6900

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.01 par value

 

PAYC

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes       No   

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer 

 

Accelerated filer

 

 

 

 

Non-accelerated filer   

 

Smaller reporting company

Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.            

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes       No  

As of July 28, 2020, there were 58,532,912 shares of common stock, par value of $0.01 per share, outstanding, including 929,015 shares of restricted stock.

 

 

 


Paycom Software, Inc.

 

 

 

PART I – FINANCIAL INFORMATION

 

 

 

Item 1.

 

 

Financial Statements

 

3

 

 

 

Unaudited Consolidated Balance Sheets

 

3

 

 

 

Unaudited Consolidated Statements of Income

 

4

 

 

Unaudited Consolidated Statements of Stockholders’ Equity

 

5

 

 

 

Unaudited Consolidated Statements of Cash Flows

 

6

 

 

 

Notes to the Unaudited Consolidated Financial Statements

 

7

 

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

18

 

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

 

30

 

Item 4.

 

 

Controls and Procedures

 

30

 

 

 

PART II – OTHER INFORMATION

 

 

 

Item 1.

 

 

Legal Proceedings

 

31

 

Item 1A.

 

 

Risk Factors

 

31

 

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

33

 

Item 6.

 

 

Exhibits

 

34

 

Signatures

 

36

 

 

 

2


PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

Paycom Software, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

113,518

 

 

$

133,667

 

Accounts receivable

 

 

9,295

 

 

 

9,298

 

Prepaid expenses

 

 

24,987

 

 

 

13,561

 

Inventory

 

 

1,376

 

 

 

1,158

 

Income tax receivable

 

 

4,324

 

 

 

4,020

 

Deferred contract costs

 

 

53,023

 

 

 

46,618

 

Current assets before funds held for clients

 

 

206,523

 

 

 

208,322

 

Funds held for clients

 

 

1,033,535

 

 

 

1,662,778

 

Total current assets

 

 

1,240,058

 

 

 

1,871,100

 

Property and equipment, net

 

 

266,831

 

 

 

238,458

 

Goodwill

 

 

51,889

 

 

 

51,889

 

Long-term deferred contract costs

 

 

328,380

 

 

 

292,134

 

Other assets

 

 

34,342

 

 

 

33,336

 

Total assets

 

$

1,921,500

 

 

$

2,486,917

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,667

 

 

$

5,051

 

Accrued commissions and bonuses

 

 

6,539

 

 

 

12,343

 

Accrued payroll and vacation

 

 

18,949

 

 

 

14,870

 

Deferred revenue

 

 

12,273

 

 

 

11,105

 

Current portion of long-term debt

 

 

1,775

 

 

 

1,775

 

Accrued expenses and other current liabilities

 

 

40,513

 

 

 

45,600

 

Current liabilities before client funds obligation

 

 

83,716

 

 

 

90,744

 

Client funds obligation

 

 

1,033,535

 

 

 

1,662,778

 

Total current liabilities

 

 

1,117,251

 

 

 

1,753,522

 

Deferred income tax liabilities, net

 

 

98,536

 

 

 

91,217

 

Long-term deferred revenue

 

 

68,614

 

 

 

65,139

 

Net long-term debt, less current portion

 

 

29,989

 

 

 

30,858

 

Other long-term liabilities

 

 

21,257

 

 

 

19,553

 

Total long-term liabilities

 

 

218,396

 

 

 

206,767

 

Total liabilities

 

 

1,335,647

 

 

 

1,960,289

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value (100,000 shares authorized, 61,613 and 61,350 shares issued at June 30, 2020 and December 31, 2019, respectively; 57,588 and 57,660 shares outstanding at June 30, 2020 and December 31, 2019, respectively)

 

 

616

 

 

 

613

 

Additional paid-in capital

 

 

300,408

 

 

 

257,501

 

Retained earnings

 

 

667,770

 

 

 

576,166

 

Treasury stock, at cost (4,025 and 3,689 shares at June 30, 2020 and December 31, 2019, respectively)

 

 

(382,941

)

 

 

(307,652

)

Total stockholders' equity

 

 

585,853

 

 

 

526,628

 

Total liabilities and stockholders' equity

 

$

1,921,500

 

 

$

2,486,917

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

3


 

Paycom Software, Inc.

Unaudited Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

 

2020

 

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

$

177,950

 

 

$

165,998

 

 

$

416,445

 

 

$

362,862

 

Implementation and other

 

 

3,637

 

 

 

3,315

 

 

 

7,510

 

 

 

6,394

 

Total revenues

 

 

181,587

 

 

 

169,313

 

 

 

423,955

 

 

 

369,256

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

23,257

 

 

 

20,289

 

 

 

47,373

 

 

 

45,065

 

Depreciation and amortization

 

 

6,301

 

 

 

4,950

 

 

 

12,231

 

 

 

9,492

 

Total cost of revenues

 

 

29,558

 

 

 

25,239

 

 

 

59,604

 

 

 

54,557

 

Administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

56,064

 

 

 

41,575

 

 

 

111,082

 

 

 

81,220

 

Research and development

 

 

21,778

 

 

 

16,775

 

 

 

43,399

 

 

 

35,264

 

General and administrative

 

 

40,837

 

 

 

27,460

 

 

 

80,971

 

 

 

72,658

 

Depreciation and amortization

 

 

6,774

 

 

 

5,378

 

 

 

13,059

 

 

 

10,183

 

Total administrative expenses

 

 

125,453

 

 

 

91,188

 

 

 

248,511

 

 

 

199,325

 

Total operating expenses

 

 

155,011

 

 

 

116,427

 

 

 

308,115

 

 

 

253,882

 

Operating income

 

 

26,576

 

 

 

52,886

 

 

 

115,840

 

 

 

115,374

 

Interest expense

 

 

(3

)

 

 

(258

)

 

 

(19

)

 

 

(534

)

Other income (expense), net

 

 

162

 

 

 

(263

)

 

 

(768

)

 

 

(363

)

Income before income taxes

 

 

26,735

 

 

 

52,365

 

 

 

115,053

 

 

 

114,477

 

Provision for income taxes

 

 

(1,854

)

 

 

3,603

 

 

 

23,449

 

 

 

18,433

 

Net income

 

$

28,589

 

 

$

48,762

 

 

$

91,604

 

 

$

96,044

 

Earnings per share, basic

 

$

0.50

 

 

$

0.85

 

 

$

1.59

 

 

$

1.67

 

Earnings per share, diluted

 

$

0.49

 

 

$

0.83

 

 

$

1.57

 

 

$

1.64

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

57,568

 

 

 

57,569

 

 

 

57,611

 

 

 

57,464

 

Diluted

 

 

58,237

 

 

 

58,410

 

 

 

58,363

 

 

 

58,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited consolidated financial statements.


4


 

Paycom Software, Inc.

Unaudited Consolidated Statements of Stockholders’ Equity

(in thousands)

 

 

Common Stock

 

 

 

 

Additional

 

 

Retained

 

 

Treasury Stock

 

 

Total

 

 

Shares

 

 

Amount

 

 

 

 

Paid-in Capital

 

 

Earnings

 

 

Shares

 

 

Amount

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2018

 

60,747

 

 

$

607

 

 

 

 

$

203,680

 

 

$

395,590

 

 

 

3,470

 

 

$

(265,124

)

 

$

334,753

 

Vesting of restricted stock

 

280

 

 

 

2

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

36,187

 

 

 

 

 

 

 

 

 

 

 

 

36,187

 

Repurchases of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

110

 

 

 

(19,669

)

 

 

(19,669

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

47,282

 

 

 

 

 

 

 

 

 

47,282

 

Balances at March 31, 2019

 

61,027

 

 

$

609

 

 

 

 

$

239,865

 

 

$

442,872

 

 

 

3,580

 

 

$

(284,793

)

 

$

398,553

 

Vesting of restricted stock

 

275

 

 

 

3

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

6,207

 

 

 

 

 

 

 

 

 

 

 

 

6,207

 

Repurchases of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

92

 

 

 

(18,760

)

 

 

(18,760

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

48,762

 

 

 

 

 

 

 

 

 

48,762

 

Balances at June 30, 2019

 

61,302

 

 

$

612

 

 

 

 

$

246,069

 

 

$

491,634

 

 

 

3,672

 

 

$

(303,553

)

 

$

434,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

Additional

 

 

Retained

 

 

Treasury Stock

 

 

Total

 

 

Shares

 

 

Amount

 

 

 

 

Paid-in Capital

 

 

Earnings

 

 

Shares

 

 

Amount

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2019

 

61,350

 

 

$

613

 

 

 

 

$

257,501

 

 

$

576,166

 

 

 

3,689

 

 

$

(307,652

)

 

$

526,628

 

Vesting of restricted stock

 

2

 

 

 

1

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

18,313

 

 

 

 

 

 

 

 

 

 

 

 

18,313

 

Repurchases of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41

 

 

 

(8,168

)

 

 

(8,168

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

63,015

 

 

 

 

 

 

 

 

 

63,015

 

Balances at March 31, 2020

 

61,352

 

 

$

614

 

 

 

 

$

275,813

 

 

$

639,181

 

 

 

3,730

 

 

$

(315,820

)

 

$

599,788

 

Vesting of restricted stock

 

261

 

 

 

2

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

24,597

 

 

 

 

 

 

 

 

 

 

 

 

24,597

 

Repurchases of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

295

 

 

 

(67,121

)

 

 

(67,121

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

28,589

 

 

 

 

 

 

 

 

 

28,589

 

Balances at June 30, 2020

 

61,613

 

 

$

616

 

 

 

 

$

300,408

 

 

$

667,770

 

 

 

4,025

 

 

$

(382,941

)

 

$

585,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

 


5