ADP 2008 Annual Report Download - page 18

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Fiscal 2007 Compared to Fiscal 2006
(Dollars in millions, except per share amounts)
Total Revenues
Our consolidated revenues in fiscal 2007 grew 14%, to $7,800.0, million due to increases in Employer Services of 11%, or $545.1 million,
to $5,707.7 million, PEO Services of 26%, or $181.1 million, to $884.8 million, and Dealer Services of 15%, or $159.6 million, to $1,257.3
million. Our consolidated revenues, excluding the impact of acquisitions and divestitures, grew 12% in fiscal 2007 as compared to the prior
year. Revenue growth was also favorably impacted by $81.1 million, or 1%, due to fluctuations in foreign currency rates.
Our consolidated revenues in fiscal 2007 include interest on funds held for clients of $653.6 million as compared to $549.8 million in the
p
rior year. The increase in the consolidated interest earned on funds held for clients resulted from the increase of 8% in our average client funds
balances to $14.7 billion, as well as the increase in the average interest rate earned to approximately 4.5% in fiscal 2007 as compared to 4.1%
in the fiscal year ended June 30, 2006 (“fiscal 2006”).
18
Years ended June 30, Change
2007 2006
2007 vs 2006
Total revenues $7,800.0 $6,835.6 14%
Costs of revenues:
Operating expenses 3,392.3 2,970.5 14%
Systems development and programming costs 486.1 472.3 3%
Depreciation and amortization 208.9 160.9 30%
Total cost of revenues 4,087.3 3,603.7 13%
Selling, general and administrative expenses 2,206.2 1,933.7 14%
Interest expense 94.9 72.8 30%
Total expenses 6,388.4 5,610.2 14%
Other income, net 211.9 135.8 56%
Earnings from continuing operations before income taxes $1,623.5 $1,361.2 19%
Margin 21% 20%
Provision for income taxes $602.3 $519.3 16%
Effective tax rate 37.1% 38.2%
N
et earnings from continuing operations $1,021.2 $841.9 21%
Diluted earnings per share from continuing operations $1.83 $1.45 26%