SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: June 27, 2000
(Date of earliest event reported)
PAYCHEX, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-11330 16-1124166
(State of incorporation) (Commission (IRS Employer
File Number) Identification Number)
911 PANORAMA TRAIL SOUTH, ROCHESTER, NEW YORK 14625-0397
(Address of principal executive offices) (Zip Code)
(716)385-6666
(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
The registrant has attached a schedule presenting quarterly financial data for
the fiscal years ended May 31, 2000 and 1999. On May 22, 2000, Paychex, Inc.
distributed a 3-for-2 stock split in the form of a 50% stock dividend on
outstanding shares as of May 12, 2000. The quarterly financial information
presented has been adjusted for the 3-for-2 stock split distributed on May 22,
2000. As a result, basic and diluted earnings per share, cash dividends
declared per common share, weighted-average shares outstanding and
weighted-average shares assuming dilution have been adjusted to reflect the
aforementioned split.
The registrant has also attached a schedule of quarterly segment financial data
for the years ended May 31, 2000 and 1999. In fiscal 2000, the Company began
allocating a portion of operating facilities costs from the Payroll segment to
the HRS-PEO segment. The quarterly and full year results from 2000 and 1999
have been restated to reflect this allocation with no impact on total Segment
operating income.
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 thereunto duly authorized.
PAYCHEX, INC.
Date: June 27, 2000 /s/ B. Thomas Golisano
-----------------------
B. Thomas Golisano
Chairman, President and
Chief Executive Officer
Date: June 27, 2000 /s/ John M. Morphy
-----------------------
John M. Morphy
Vice President, Chief
Financial Officer and
Secretary
On May 22, 2000, Paychex, Inc. distributed a 3-for-2 stock split effected in
the form of a 50% stock dividend on outstanding shares as of May 12, 2000. As
a result, basic and diluted earnings per share, cash dividends per common
share, weighted-average shares outstanding and weighted-average shares assuming
dilution displayed below have been adjusted to reflect the aforementioned stock
split. Each quarter is a discrete period and the sum of the quarters' basic
and diluted earnings per share amounts may not equal the year-to-date amounts.
<TABLE>
<CAPTION>
QUARTERLY FINANCIAL DATA (UNAUDITED)
In thousands, except per share amounts
________________________________________________________________________________
Fiscal 2000 August November February May Year
31, 30, 29, 31,
______________________________________________________
<S> <C> <C> <C> <C> <C>
Service revenues:
Payroll $150,919 $154,899 $171,821 $175,606 $653,245
HRS-PEO (A) 15,473 17,459 20,362 21,580 74,874
-------- -------- -------- -------- --------
Total service revenues 166,392 172,358 192,183 197,186 728,119
Operating costs 39,366 41,356 45,964 46,795 173,481
SG&A expenses 68,342 68,494 78,316 80,593 295,745
-------- -------- -------- -------- --------
Operating income 58,684 62,508 67,903 69,798 258,893
Investment income 3,688 3,854 4,012 4,925 16,479
-------- -------- -------- -------- --------
Income before income
taxes 62,372 66,362 71,915 74,723 275,372
Income taxes 19,335 20,572 22,294 23,164 85,365
-------- -------- -------- -------- --------
Net income $ 43,037 $ 45,790 $ 49,621 $ 51,559 $190,007
======== ======== ======== ======== ========
Basic earnings per share $ .12 $ .12 $ .13 $ .14 $ .51
======== ======== ======== ======== ========
Diluted earnings per
share $ .12 $ .12 $ .13 $ .14 $ .51
======== ======== ======== ======== ========
Weighted-average common
shares outstanding 369,627 370,258 370,972 371,576 370,603
======== ======== ======== ======== ========
Weighted-average shares
assuming dilution 373,493 374,717 377,723 376,407 375,081
======== ======== ======== ======== ========
Cash dividends per
common share $ .04 $ .06 $ .06 $ .06 $ .22
======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
________________________________________________________________________________
Fiscal 1999 August November February May Year
31, 30, 28, 31,
_______________________________________________________
<S> <C> <C> <C> <C> <C>
Service revenues:
Payroll $127,982 $131,035 $144,257 $141,975 $545,249
HRS-PEO (A) 11,307 11,913 14,166 14,661 52,047
-------- -------- -------- -------- --------
Total service revenues 139,289 142,948 158,423 156,636 597,296
Operating costs 35,885 36,863 40,989 38,219 151,956
SG&A expenses 61,761 61,089 68,941 65,987 257,778
-------- -------- -------- ------- --------
Operating income 41,643 44,996 48,493 52,430 187,562
Investment income 2,961 3,006 3,073 3,541 12,581
-------- -------- -------- -------- --------
Income before income
taxes 44,604 48,002 51,566 55,971 200,143
Income taxes 13,203 14,394 15,366 18,081 61,044
-------- -------- -------- -------- --------
Net income $ 31,401 $ 33,608 $ 36,200 $ 37,890 $139,099
======== ======== ======== ======== ========
Basic earnings per share $ .09 $ .09 $ .10 $ .10 $ .38
======== ======== ======== ======== ========
Diluted earnings per
share $ .08 $ .09 $ .10 $ .10 $ .37
======== ======== ======== ======== ========
Weighted-average common
shares outstanding 367,374 367,942 368,540 369,229 368,282
======== ======== ======== ======== ========
Weighted-average shares
assuming dilution 372,432 373,196 373,401 373,654 373,182
======== ======== ======== ======== ========
Cash dividends per
common share $ .03 $ .04 $ .04 $ .04 $ .15
======== ======== ======== ======== ========
<FN>
(A) Net of PEO direct costs billed and incurred of $160,987, $161,056,
$193,047, and $216,176 for the three months ended August 31, 1999, November 30,
1999, February 29, 2000, and May 31, 2000, respectively, and $142,498, $139,033,
$148,292, and $148,309 for the three months ended August 31, 1998, November 30,
1998, February 28, 1999, and May 31, 1999, respectively. PEO direct costs
billed to clients are equal to PEO direct costs incurred for the wages and
payroll taxes of worksite employees and their related benefit premiums and
claims.
</FN>
</TABLE>
In fiscal 2000, the Company began to allocate a portion of the operating
facilities costs from the Payroll Segment to the HRS-PEO Segment. Prior period
Payroll and HRS-PEO segment operating income amounts have been restated to
reflect this allocation with no impact on total Segment operating income. The
amounts of these facilities allocations are approximately $412,500 per quarter
and $1,650,000 for the year for fiscal 2000, and approximately $381,500 per
quarter and $1,526,000 for the year for fiscal 1999.
<TABLE>
<CAPTION>
QUARTERLY SEGMENT FINANCIAL DATA (UNAUDITED)
In thousands
________________________________________________________________________________
Fiscal 2000 August November February May Year
31, 30, 29, 31,
_______________________________________________________
<S> <C> <C> <C> <C> <C>
Service revenues:
Payroll $150,919 $154,899 $171,821 $175,606 $653,245
HRS-PEO (A) 15,473 17,459 20,362 21,580 74,874
-------- -------- -------- -------- --------
Total service revenues $166,392 $172,358 $192,183 $197,186 $728,119
======== ======== ======== ======== ========
ENS Investment revenue
included in payroll: $ 12,207 $ 12,033 $ 16,355 $ 18,205 $ 58,800
======== ======== ======== ======== ========
Operating income:
Payroll $ 72,184 $ 72,567 $ 77,683 $ 80,926 $303,360
HRS-PEO 4,504 5,729 6,831 6,331 23,395
-------- -------- -------- -------- --------
Segment operating
income 76,688 78,296 84,514 87,257 326,755
Corporate Expenses 18,004 15,788 16,611 17,459 67,862
-------- -------- -------- -------- --------
Total operating income 58,684 62,508 67,903 69,798 258,893
Investment income 3,688 3,854 4,012 4,925 16,479
-------- -------- -------- -------- --------
Income before income
taxes $ 62,372 $ 66,362 $ 71,915 $ 74,723 $275,372
======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
________________________________________________________________________________
Fiscal 1999 August November February May Year
31, 30, 28, 31,
_______________________________________________________
<S> <C> <C> <C> <C> <C>
Service revenues:
Payroll $127,982 $131,035 $144,257 $141,975 $545,249
HRS-PEO (A) 11,307 11,913 14,166 14,661 52,047
-------- -------- -------- -------- --------
Total service revenues $139,289 $142,948 $158,423 $156,636 $597,296
======== ======== ======== ======== ========
ENS Investment revenue
included in payroll: $ 11,776 $ 11,984 $ 14,775 $ 13,800 $ 52,335
======== ======== ======== ======== ========
Operating income:
Payroll $ 54,269 $ 57,056 $ 61,375 $ 64,536 $237,236
HRS-PEO 2,230 2,194 2,854 3,794 11,072
-------- -------- -------- -------- --------
Segment operating
income 56,499 59,250 64,229 68,330 248,308
Corporate Expenses 14,856 14,254 15,736 15,900 60,746
-------- -------- -------- -------- --------
Total operating income 41,643 44,996 48,493 52,430 187,562
Investment income 2,961 3,006 3,073 3,541 12,581
-------- -------- -------- -------- --------
Income before income
taxes $ 44,604 $ 48,002 $ 51,566 $ 55,971 $200,143
======== ======== ======== ======== ========
<FN>
(A) Net of PEO direct costs billed and incurred of $160,987, $161,056,
$193,047, and $216,176 for the three months ended August 31, 1999, November 30,
1999, February 29, 2000, and May 31, 2000, respectively, and $142,498, $139,033,
$148,292, and $148,309 for the three months ended August 31, 1998, November 30,
1998, February 28, 1999, and May 31, 1999, respectively. PEO direct costs
billed to clients are equal to PEO direct costs incurred for the wages and
payroll taxes of worksite employees and their related benefit premiums and
claims.
</FN>
</TABLE>
