ADP 1998 Annual Report Download - page 3

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1
(In thousands, except per share amounts and number of employees)
Years ended June 30, 1998 1997 % Increase
Revenue $ 4,798,061 $ 4,112,186 17%
Net earnings $ 605,300 $ 513,500 18%
Basic earnings per share $ 2.04 $ 1.76 16%
Diluted earnings per share $ 1.98 $ 1.71 16%
Cash dividends $ 152,888 $ 129,814 18%
Cash dividends per share $ .5125 $ .445 15%
Basic shares outstanding 296,878 290,990
Diluted shares outstanding 310,411 306,659
Return on equity 20.1% 20.6%
At year end:
Cash, cash equivalents and
marketable securities $ 1,662,448 $ 1,495,083
Working capital $ 608,263 $ 785,450
Total assets $ 5,175,355 $ 4,382,772
Long-term debt $ 192,063 $ 401,162
Shareholders equity $ 3,406,451 $ 2,660,565
Number of employees 34,000 30,000
BASIC EPS
94 95 96 97 98
AUTOMATIC DATA PROCESSING, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
$2.04
$1.76
$1.57
$1.38
$1.17
REVENUE
94 95 96 97 98
$4,798
$4,112
$3,567
$2,894
$2,469
•
Brokerage Services Investor
Communications processed over 360
million shareholder mailings;
signed contracts with Merrill Lynch,
Prudential Securities and Paine
Webber; and operated at record service
levels, including 25% faster mailing
turnaround and excellent voting
tabulation accuracy.
•
Brokerage Services introduced
Internet proxy voting and electronic
delivery of shareowner communications
this year. These services are quickly
gaining market acceptance.
•
Dealer Services now has clients in
22 countries and a worldwide client
retention rate that exceeds 95%. Many
dealers upgraded their computer
systems to our best-of-breed Millennia
platform in 98 to achieve greater
functionality.
•
Dealer Services announced a joint
venture called AutoConnectwith
Manheim Auctions, Inc., a subsidiary
of Cox Enterprises. AutoConnect
uses more than 5,000 web sites on the
Internet to connect auto dealers with
prospective buyers, and has the
potential of being the largest online
inventory of vehicles in the world.
•
Claims Services continued its
expansion into the workers compensa-
tion market by acquiring Context/
Embassy with its state-of-the-art workers
compensation bill review system.
•
Claims Services acquired Audatex
late in the year, extending its auto-
mated
estimating services to clients
in 16 countries and adding over $80
million of annual revenue. We now
serve most property and casualty
insurance carriers in North America
and Europe, 13,000 collision repair
centers and over 3,000 auto parts
recycling facilities.
TABLE OF CONTENTS
FINANCIAL HIGHLIGHTS 1
LETTERS TO SHAREHOLDERS 2
EMPLOYER SERVICES 5
BROKERAGE SERVICES 8
DEALER SERVICES 10
CLAIMS SERVICES 12
INTERNATIONAL 14
FINANCIAL INFORMATION 16