SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported):
September 30, 1996
PAYCHEX, INC.
(Exact name of Registrant as specified in its charter)
Delaware 0-11330 16-1123166
__________________________________________________________________________
(State or other (Commission I.R.S. Employer
jurisdiction File No.) Identification
of incorporation) No.)
911 Panorama Trail South Rochester, New York 14625
__________________________________________________________________________
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (716)385-6666
N/A
__________________________________________________________________________
(Former name or former address, if changed, since last report)
<PAGE>
ITEM 5. OTHER EVENTS
On August 26, 1996, Paychex, Inc. merged with National Business Solutions,
Inc. (NBS), now Paychex Business Solutions, Inc. (PBS) in a business
combination accounted for as a pooling of interests. The stockholders of NBS
received 2,934,496 shares of Paychex, Inc. common stock. The following
financial data represents year to date combined financial results which
include at least 30 days of post-merger combined operations.
Paychex, Inc. and Subsidiaries - Consolidated Statements of Income
__________________________________________________________________
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Four Months Ended
September 30,
____________
1996 1995
<S> <C> <C>
Payroll Revenue $116,991 $100,066
PEO Revenue 102,124 64,095
________ ________
Total Revenue 219,115 164,161
PEO Direct Costs 98,992 61,824
Operating Costs 34,814 30,824
Selling, Gen & Admin Exp 56,681 50,368
________ ________
Operating Income 28,628 21,145
Other Income 2,028 1,846
________ ________
Income Before
Income Taxes 30,656 22,991
Income Taxes 8,461 6,350
________ ________
Net Income $ 22,195 $ 16,641
Earnings Per share $ .31 $ .23*
Cash Dividends Per Share $ .06 $ .04*
Weighted Average
Shares Outstanding 71,669 71,045*
</TABLE>
* Adjusted for a three-for-two stock split in May, 1996.
<PAGE>
Paychex, Inc.and Subsidiaries - Market Segment Information
__________________________________________________________
(in thousands)
The Company operates in two major segments, Payroll and Professional Employer
Organization (PEO). The Payroll segment is engaged in the preparation of
payroll checks, internal accounting records and all Federal, State and Local
payroll tax returns for small to medium-sized businesses. The Payroll segment
also includes employee handbooks, section 125 plans and 401(k) recordkeeping
services. The PEO segment specializes in providing small and medium-sized
businesses with cost-effective outsourcing solutions for their employee
benefits. As an outsourcing solution, the PEO relieves the business owner of
human resources administration, employment regulatory compliance, workers'
compensation coverage, health care and other employee related
responsibilities. Consistent with PEO industry practice, revenue includes all
amounts billed to clients for the services provided by the PEO.
<TABLE>
<CAPTION>
Four Months Ended
September 30,
1996 1995
_____ ______
<S> <C> <C>
Revenue
Payroll $116,991 $100,066
PEO 102,124 64,095
________ ________
Total Revenue 219,115 164,161
PEO Direct Costs 98,992 61,824
________ ________
Revenue Less PEO Direct Costs 120,123 102,337
Operating Costs
Payroll 33,078 29,486
PEO 1,736 1,338
________ ________
Total Operating Costs 34,814 30,824
Selling, General and Admin
Payroll 54,234 48,497
PEO 311 232
________ ________
Total Selling, General and Admin 54,545 48,729
Operating Income
Payroll 29,679 22,083
PEO 1,085 701
________ ________
Total Operating Income 30,764 22,784
General Corporate Expenses 2,136 1,639
Other Income - Net 2,028 1,846
________ ________
Income Before Income Taxes $ 30,656 $ 22,991
________ ________
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 22, 1996
PAYCHEX, INC.
By: /s/ John M. Morphy
_____________________________________
John M. Morphy
Vice President, Chief
Financial Officer and
Secretary
