ADP 2013 Annual Report Download - page 29

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PEO Services
Fiscal 2013 Compared to Fiscal 2012
Revenues
PEO Services' revenues increased $201.8 million , or 11% , to $1,973.2 million for fiscal 2013 , as compared to fiscal 2012 . Such
revenues include pass-through costs of $1,513.5 million for fiscal 2013 and $1,363.6 million for fiscal 2012 associated with benefits coverage,
workers' compensation coverage, and state unemployment taxes for worksite employees. The increase in revenues was due to a 9% increase in
the average number of worksite employees, resulting from an increase in the number of new clients and growth in our existing clients.
Earnings from Continuing Operations before Income Taxes
PEO Services’ earnings from continuing operations before income taxes increased $28.6 million , or 17% , to $199.2 million for fiscal
2013 , as compared to fiscal 2012 . Earnings from continuing operations before income taxes increased due to growth in earnings related to the
increase in the average number of worksite employees. Overall margin increased approximately 50 basis points from 9.6% to 10.1% for fiscal
2013 , as compared to fiscal 2012 , resulting from slower growth in pass-through costs.
Fiscal 2012 Compared to Fiscal 2011
Revenues
PEO Services' revenues increased $227.5 million , or 15% , to $1,771.4 million in fiscal 2012, as compared to fiscal 2011. Such
revenues include pass-through costs of $1,363.6 million for fiscal 2012 and $1,182.2 million for fiscal 2011 associated with benefits coverage,
workers' compensation coverage, and state unemployment taxes for worksite employees. The increase in revenues was due to a 12% increase in
the average number of worksite employees, resulting from an increase in the number of new clients and growth in our existing clients.
Earnings from Continuing Operations before Income Taxes
PEO Services' earnings from continuing operations before income taxes increased $33.3 million , or 24% , to $170.6 million for fiscal
2012, as compared to fiscal 2011, due to growth in earnings related to the increase in the average number of worksite employees. Overall margin
increased approximately 70 basis points from 8.9% to 9.6% for fiscal 2012, as compared to fiscal 2011, resulting from a higher average number
of worksite employees.
Dealer Services
Fiscal 2013 Compared to Fiscal 2012
Revenues
Dealer Services' revenues increased $152.4 million , or 9% , to $1,813.7 million for fiscal 2013 , as compared to fiscal 2012
. Revenues
for our Dealer Services business would have increased approximately 8% without the impact of acquisitions due to new clients, improved client
retention, and growth in our key products during fiscal 2013 , as compared to fiscal 2012 . Revenues increased due to new business started
during the year from growth in new business bookings and increased users of our digital marketing solutions. We continue to see increased
utilization of our credit report and vehicle registration transactions, consistent with the steady improvement of the North American new car
market.
Earnings from Continuing Operations before Income Taxes
Dealer Services' earnings from continuing operations before income taxes increased $ 58.1 million , or 21% , to $335.7 million for
fiscal 2013 , as compared to fiscal 2012 . This increase was due to the increase in revenues of $152.4 million discussed above and was partially
offset by higher operating expenses related to implementing and servicing new clients and products. Overall margin increased approximately
180 basis points from 16.7% to 18.5% for fiscal 2013, as compared to fiscal 2012, due to increased operating scale and included approximately
10 basis points of margin improvement related to acquisitions completed in fiscal 2012.
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