Paychex 2015 Annual Report Download - page 9

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2015 ANNUAL REPORT
I 7
FINANCIAL
PERFORMANCE
Our employees’ contributions were essential to
the financial results we achieved in fiscal 2015.
Total service revenue for the year was
$2.7 billion, up 9 percent. Payroll service
revenue increased 4 percent to $1.7 billion.
HRS revenue again climbed
at a double-digit rate, up
18 percent to $1.0 billion.
Operating income was
also a record $1.1 billion,
an increase of 7 percent
over 2014. Net income and earnings
per share rose 8 percent to $675 million
and $1.85, respectively.
Paychex continues to have no debt and a strong
liquidity position, with cash and total corporate
investments of $936 million. This significant cash
balance gives us flexibility in our investments
and acquisitions, while at the same time, gives
us the opportunity to reward our shareholders
for their investment in our company through
shareholder-friendly actions, including increasing
our dividend 9 percent last July, and returning
$552 million, or 82 percent, of net income
to our shareholders. We also repurchased
approximately four million shares of Paychex
stock for $182 million.
THE FUTURE
We continue to balance our investments in
the future of Paychex with our commitment to
maintaining the exceptional shareholder value
and great dividend we are known for among
investors. As the rate of change quickens in our
industry, we will keep innovating, building, and
acquiring technology that ensures we stay ahead
of the market, and we will keep expanding and
integrating service options that meet our clients’
ever-evolving needs.
Fiscal 2015 was a very successful year. We look
forward to an even greater year in fiscal 2016.
My sincere thanks to the Paychex shareholders,
Board of Directors, clients, and employees for
their support.
Sincerely,
Martin Mucci
President and CEO