Company Quick10K Filing
Paychex
10-Q 2020-08-31 Filed 2020-10-09
10-K 2020-05-31 Filed 2020-07-17
10-Q 2020-02-29 Filed 2020-03-27
10-Q 2019-11-30 Filed 2019-12-20
10-Q 2019-08-31 Filed 2019-10-04
10-K 2019-05-31 Filed 2019-07-24
10-Q 2019-02-28 Filed 2019-03-29
10-Q 2018-11-30 Filed 2018-12-21
10-Q 2018-08-31 Filed 2018-10-05
10-K 2018-05-31 Filed 2018-07-20
10-Q 2018-02-28 Filed 2018-03-28
10-Q 2017-11-30 Filed 2017-12-21
10-Q 2017-08-31 Filed 2017-10-06
10-K 2017-05-31 Filed 2017-07-21
10-Q 2017-02-28 Filed 2017-03-31
10-Q 2016-11-30 Filed 2016-12-23
10-Q 2016-08-31 Filed 2016-09-30
10-K 2016-05-31 Filed 2016-07-22
10-Q 2016-02-29 Filed 2016-03-30
10-Q 2015-11-30 Filed 2015-12-23
10-Q 2015-08-31 Filed 2015-09-30
10-K 2015-05-31 Filed 2015-07-21
10-Q 2015-02-28 Filed 2015-03-25
10-Q 2014-11-30 Filed 2014-12-19
10-Q 2014-08-31 Filed 2014-09-24
10-K 2014-05-31 Filed 2014-07-22
10-Q 2014-02-28 Filed 2014-03-26
10-Q 2013-08-31 Filed 2013-09-30
10-Q 2013-02-28 Filed 2013-03-27
10-Q 2012-11-30 Filed 2012-12-20
10-Q 2012-08-31 Filed 2012-09-24
10-K 2012-05-31 Filed 2012-07-20
10-Q 2012-02-29 Filed 2012-03-28
10-Q 2011-11-30 Filed 2011-12-20
10-Q 2011-08-31 Filed 2011-09-27
10-K 2011-05-31 Filed 2011-07-15
10-Q 2011-02-28 Filed 2011-03-23
10-Q 2010-11-30 Filed 2010-12-20
10-Q 2010-08-31 Filed 2010-09-27
10-K 2010-05-31 Filed 2010-07-16
10-Q 2010-02-28 Filed 2010-03-24
8-K 2020-10-15 Shareholder Vote, Exhibits
8-K 2020-10-06 Earnings, Exhibits
8-K 2020-07-07 Earnings, Exhibits
8-K 2020-05-19
8-K 2020-05-01
8-K 2020-03-25
8-K 2020-02-06
8-K 2019-12-18
8-K 2019-10-17
8-K 2019-10-02
8-K 2019-07-31
8-K 2019-07-10
8-K 2019-06-26
8-K 2019-05-03
8-K 2019-03-27
8-K 2019-01-09
8-K 2018-12-19
8-K 2018-11-26
8-K 2018-10-11
8-K 2018-10-02
8-K 2018-06-27
8-K 2018-06-27
8-K 2018-04-26
8-K 2018-03-26
8-K 2018-03-01

PAYX 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
Part II. Other Information
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
EX-31.1 payx-20200831xex31_1.htm
EX-31.2 payx-20200831xex31_2.htm
EX-32.1 payx-20200831xex32_1.htm
EX-32.2 payx-20200831xex32_2.htm

Paychex Earnings 2020-08-31

Balance SheetIncome StatementCash Flow
151296302012201420172020
Assets, Equity
1.10.90.70.40.20.02012201420172020
Rev, G Profit, Net Income
1.71.00.2-0.5-1.3-2.02012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549 

_________________________________________

FORM 10-Q

_________________________________________

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

For the quarterly period ended August 31, 2020

OR

¨ 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 0-11330

__________________________________________________

Paychex, Inc.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

16-1124166

(I.R.S. Employer Identification No.)

911 Panorama Trail South

Rochester, NY

(Address of principal executive offices)

14625-2396

(Zip Code)

Registrant's telephone number, including area code: (585) 385-6666

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

PAYX

Nasdaq Global Select Market

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 September 30, 2020, 359,500,317 shares of the registrant’s common stock, $.01 par value, were outstanding.


PAYCHEX, INC.

Table of Contents

 


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

In millions, except per share amounts

For the three months ended

August 31,

2020

2019

Revenue:

Management Solutions

$

687.4

$

724.5

PEO and Insurance Solutions

229.9

247.0

Total service revenue

917.3

971.5

Interest on funds held for clients

14.9

20.5

Total revenue

932.2

992.0

Expenses:

Cost of service revenue

307.1

325.4

Selling, general and administrative expenses

341.1

317.5

Total expenses

648.2

642.9

Operating income

284.0

349.1

Other expense, net

(7.9)

(4.8)

Income before income taxes

276.1

344.3

Income taxes

64.5

80.1

Net income

$

211.6

$

264.2

Other comprehensive income, net of tax

23.0

26.4

Comprehensive income

$

234.6

$

290.6

Basic earnings per share

$

0.59

$

0.74

Diluted earnings per share

$

0.59

$

0.73

Weighted-average common shares outstanding

359.1

358.6

Weighted-average common shares outstanding, assuming dilution

361.3

361.5

See Notes to Consolidated Financial Statements.

1


PAYCHEX, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

In millions, except per share amounts

August 31,

May 31,

2020

2020

Assets

Cash and cash equivalents

$

835.7

$

905.2

Restricted cash

50.8

49.8

Corporate investments

30.6

27.2

Interest receivable

23.6

26.2

Accounts receivable, net of allowance for doubtful accounts

414.8

384.1

PEO unbilled receivables, net of advance collections

417.5

380.0

Prepaid income taxes

16.8

Prepaid expenses and other current assets

252.9

244.8

Current assets before funds held for clients

2,025.9

2,034.1

Funds held for clients

3,314.3

3,430.5

Total current assets

5,340.2

5,464.6

Long-term restricted cash

24.8

21.3

Long-term corporate investments

10.2

10.2

Property and equipment, net of accumulated depreciation

396.0

407.4

Operating lease right-of-use assets, net of accumulated amortization

96.1

114.8

Intangible assets, net of accumulated amortization

314.1

330.6

Goodwill

1,796.8

1,791.1

Long-term deferred costs

368.9

372.5

Other long-term assets

29.8

38.2

Total assets

$

8,376.9

$

8,550.7

Liabilities

Accounts payable

$

62.0

$

79.4

Accrued corporate compensation and related items

97.6

131.7

Accrued worksite employee compensation and related items

503.9

512.4

Short-term borrowings

6.1

5.1

Accrued income taxes

51.8

50.5

Deferred revenue

39.6

39.2

Other current liabilities

304.2

277.6

Current liabilities before client fund obligations

1,065.2

1,095.9

Client fund obligations

3,197.9

3,331.0

Total current liabilities

4,263.1

4,426.9

Accrued income taxes

12.0

33.5

Deferred income taxes

243.5

240.8

Long-term borrowings, net of debt issuance costs

796.9

796.8

Operating lease liabilities

95.1

96.9

Other long-term liabilities

187.7

174.4

Total liabilities

5,598.3

5,769.3

Commitments and contingencies — Note H

 

 

Stockholders’ equity

Common stock, $0.01 par value; Authorized: 600.0 shares;
Issued and outstanding: 359.5 shares as of August 31, 2020
and 358.8 shares as of May 31, 2020

3.6

3.6

Additional paid-in capital

1,325.3

1,289.9

Retained earnings

1,370.2

1,431.4

Accumulated other comprehensive income

79.5

56.5

Total stockholders’ equity

2,778.6

2,781.4

Total liabilities and stockholders’ equity

$

8,376.9

$

8,550.7

See Notes to Consolidated Financial Statements. 


2


PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

In millions, except per share amounts

For the three months ended August 31, 2020

Accumulated

Additional

other

Common stock

paid-in

Retained

comprehensive

Shares

Amount

capital

earnings

income

Total

Balance as of May 31, 2020

358.8

$

3.6

$

1,289.9

$

1,431.4

$

56.5

$

2,781.4

Net income

211.6

211.6

Unrealized gains on securities, net of $4.2 million in tax expense

13.0

13.0

Reclassification adjustment for realized gains on securities, net of $0.1 million in tax expense (1)

(0.2)

(0.2)

Cash dividends declared ($0.62 per share)

(223.2)

(223.2)

Repurchases of common shares (2)

(0.4)

(0.7)

(28.1)

(28.8)

Stock-based compensation costs

13.3

13.3

Foreign currency translation adjustment

10.2

10.2

Activity related to equity-based plans

1.1

22.8

(21.5)

1.3

Balance as of August 31, 2020

359.5

$

3.6

$

1,325.3

$

1,370.2

$

79.5

$

2,778.6

For the three months ended August 31, 2019

Accumulated

Additional

other

Common stock

paid-in

Retained

comprehensive

Shares

Amount

capital

earnings

income

Total

Balance as of May 31, 2019

359.3

$

3.6

$

1,206.3

$

1,409.5

$

0.1

$

2,619.5

Net income

264.2

264.2

Unrealized gains on securities, net of $8.5 million in tax expense

26.1

26.1

Reclassification adjustment for realized gains on securities, net of $0.2 million in tax expense (1)

(0.7)

(0.7)

Cash dividends declared ($0.62 per share)

(222.0)

(222.0)

Repurchases of common shares (2)

(2.0)

(3.7)

(168.2)

(171.9)

Stock-based compensation costs

10.5

10.5

Foreign currency translation adjustment

1.0

1.0

Activity related to equity-based plans

0.6

10.9

(18.3)

(7.4)

Balance as of August 31, 2019

357.9

$

3.6

$

1,224.0

$

1,265.2

$

26.5

$

2,519.3

(1) Reclassification adjustments out of accumulated other comprehensive income for realized gains, net of tax, on the sale of available-for-sale securities are reflected in interest on funds held for clients and other expense, net on the Consolidated Statements of Income and Comprehensive Income.

(2) In May 2019, the Company announced that its Board of Directors (the “Board”) approved a program to repurchase up to $400.0 million of its common stock, with authorization expiring on May 31, 2022. The purpose of this program is to manage common stock dilution. All shares of common stock repurchased were retired.

See Notes to Consolidated Financial Statements.

3


PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

In millions

For the three months ended

August 31,

2020

2019

Operating activities

Net income

$

211.6

$

264.2

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

49.6

52.9

Amortization of premiums and discounts on available-for-sale securities, net

9.5

10.0

Amortization of deferred contract costs

47.3

46.0

Stock-based compensation costs

13.3

10.5

Benefit from deferred income taxes

(1.5)

(3.7)

Provision for allowance for doubtful accounts

0.6

2.3

Net realized gains on sales of available-for-sale securities

(0.3)

(0.9)

Changes in operating assets and liabilities:

Interest receivable