ADP 2001 Annual Report Download - page 4

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“Consolidated revenues for the year
grew 12% to over $7 billion.”
2
Dear Shareholders,
Changing Times
F
iscal 2001 was an unusual year. After a strong start,
the U.S. economy slowed markedly and the economic
environment changed faster than at any time in the
last 20 years.
The slowdown impacted us in three primary areas:
Brokerage trades fell behind the prior year’s record high
levels with a significant reduction in individual investor
trading activity; our Employer Services new business sales
results slowed sharply; and fed funds rates dropped 275
basis points in a series of 6 decreases. Since our average
daily investable balances are over $10 billion, this interest
rate decline is significant.
During ’01, we also wrote off our $90 million investment
in Bridge Information Systems. This investment arose from
the sale of our Brokerage Services front-office, market
data business to Bridge in 1999. While this is a non-cash
write-off and has no effect on our ongoing business, we do
not treat these so-called “one-time” write-offs lightly.