Ceridian HCM Holding Inc. (“Ceridian” or the “Company”) (NYSE:CDAY)
(TSX:CDAY), a global human capital management (“HCM”) software
company, announced today its financial results for the first
quarter ended March 31, 2020. All financial results are
reported in U.S. dollars unless otherwise stated. A reconciliation
of U.S. generally accepted accounting principles (“GAAP”)
to non-GAAP financial measures has been provided in this
press release, including the accompanying tables. An explanation of
these measures is also included below under the heading “Use
of Non-GAAP Financial Measures.”
“Our first quarter financial performance was strong, and our
underlying business continues to perform well,” said David Ossip,
Chairman and Chief Executive Officer of Ceridian. “Throughout the
first quarter, demand for Dayforce continued to be high, and our
pipeline expanded. Even in this new environment, we continue to
close business and take customers live. In addition, we recently
launched the Dayforce Wallet and are seeing the demand we
expected.”
The average U.S. dollar to Canadian dollar foreign exchange rate
was $1.34, with a daily range of $1.30 to $1.45, for the three
months ended March 31, 2020, compared to $1.33, with a daily
range of $1.31 to $1.36, for the three months ended March 31,
2019. As of March 31, 2020, the U.S. dollar to Canadian
dollar foreign exchange rate was $1.41. To present the performance
of the business excluding the effect of foreign currency rate
fluctuations, the Company presents revenue on a constant currency
basis, which we believe is useful to management and investors. We
have calculated revenue on a constant currency basis by applying
the average foreign exchange rate in effect during the comparable
prior period.
Financial Highlights for the First Quarter
2020
The financial highlights below are on a year-over-year basis,
unless otherwise stated.
Revenue
- Dayforce revenue was $168.8 million for the first quarter
of 2020, an increase of 27.1%, or 27.3% on a constant currency
basis.
- Excluding float revenue, Dayforce revenue was $154.7 million
for the first quarter of 2020, an increase of 31.7%, or 31.9% on a
constant currency basis.
- Dayforce recurring revenue was $128.1 million for the first
quarter of 2020, an increase of 24.5%, or 24.7% on a constant
currency basis.
- Excluding float revenue, Dayforce recurring revenue was $114.0
million for the first quarter of 2020, an increase of 30.1%, or
30.4% on a constant currency basis.
- Cloud revenue, which includes both Dayforce and Powerpay, was
$190.9 million for the first quarter of 2020, an increase of
23.5%, or 23.7% on a constant currency basis.
- Excluding float revenue, Cloud revenue was $174.0 million for
the first quarter of 2020, an increase of 27.8%, or 28.1% on a
constant currency basis.
- Total revenue, which includes revenue from both our Cloud and
Bureau solutions, was $222.7 million for the first quarter of
2020, an increase of 9.3%, or 9.5% on a constant currency
basis.
- Excluding float revenue, total revenue was $203.1 million for
the first quarter of 2020, an increase of 13.2%, or 13.4% on a
constant currency basis.
Net Income and Net Income Per Share
- Net income was $8.6 million for the first quarter of 2020,
compared to $11.2 million. Adjusted net income was $22.0
million for the first quarter of 2020, compared to $20.4
million.
- Diluted net income per share was $0.06 for the first quarter of
2020, compared to $0.08. Adjusted diluted net income per share was
$0.15 for the first quarter of 2020, compared to $0.14. Diluted
weighted average common shares outstanding were 151.2 million and
147.0 million for the first quarter of 2020 and 2019,
respectively.
Gross Margin, Operating Profit, and Adjusted EBITDA
- Gross margin of 45.1% for the first quarter of 2020, compared
to 45.9%.
- Recurring services gross margin improved to 71.2% for the first
quarter of 2020, compared to 70.5%. Cloud recurring services gross
margin improved to 72.6% for the first quarter of 2020, compared to
70.1%.
- Professional services and other gross margin improved to (3.4)%
for the first quarter of 2020, compared to (14.2)%.
- Operating profit was $26.3 million for the first quarter of
2020, compared to $27.4 million.
- Adjusted EBITDA increased 10.8% to $55.2 million for the
first quarter of 2020, compared to $49.8 million.
- Excluding float revenue, Adjusted EBITDA increased 39.6%.
Balance Sheet
- Cash and equivalents were $255.3 million as of
March 31, 2020, compared to $281.3 million as of
December 31, 2019.
- Total debt was $674.7 million as of March 31, 2020, a
reduction of $2.4 million, compared to $677.1 million as
of December 31, 2019. Total debt included financing lease
obligations of $11.4 million and $12.4 million as of March 31,
2020, and December 31, 2019, respectively.
Dayforce Live Customer Count
- 4,480 Dayforce customers were live on the Dayforce platform as
of March 31, 2020, a net increase of 629 customers, compared
to 3,851 Dayforce customers as of March 31, 2019, and a net
increase of 117 customers, compared to 4,363 as of December 31,
2019.
- Excluding float revenue and on a fixed currency basis, Dayforce
revenue per customer was $124,129 for the trailing twelve months
ended March 31, 2020, an increase of 13.3% from $109,582 for
the trailing twelve months ended March 31, 2019.
Withdrawing Guidance
It is impossible to accurately predict the depth and duration of
the COVID-19 crisis, and in particular, its impact on the
employment levels at our customers. Accordingly, we are
suspending our remaining quarterly guidance and withdrawing our
full year 2020 guidance at this time.
To help stockholders and analysts to understand the impact of
COVID-19 on our business as the COVID-19 recovery progresses, we
are providing additional detail on Dayforce revenue and other
performance indicators. Please refer to our Q1 2020 Stockholder
Letter (Exhibit 99.2 to our Current Report on Form 8-K furnished by
the Company on May 6, 2020) for additional information.
Conference Call Details
Ceridian will host a conference call on May 6, 2020 at 5:00 p.m.
Eastern Time to discuss the financial results for the first quarter
of 2020. Those wishing to participate via the webcast should access
the call through Ceridian’s Investor Relations website at
https://investors.ceridian.com. Those wishing to participate via
the telephone may dial in at 877-701-0459 (USA) or 647-689-5466
(International). The conference call replay will be available via
webcast through Ceridian’s Investor Relations website at
https://investors.ceridian.com.
About Ceridian HCM Holding Inc.
Ceridian. Makes Work Life Better™.
Ceridian is a global human capital management software company.
Dayforce, our flagship cloud HCM platform, provides human
resources, payroll, benefits, workforce management, and talent
management functionality. Our platform is used to optimize
management of the entire employee lifecycle, including attracting,
engaging, paying, deploying, and developing people. Ceridian has
solutions for organizations of all sizes.
Use of Non-GAAP Financial
Measures
We use certain non-GAAP financial measures in this
release including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
net income, and revenue on a constant currency and fixed currency
basis. We believe that Adjusted EBITDA, Adjusted EBITDA
margin, and Adjusted net income, non-GAAP financial
measures, are useful to management and investors as supplemental
measures to evaluate our overall operating performance. Adjusted
EBITDA and Adjusted EBITDA margin are components of our management
incentive plan and are used by management to assess performance and
to compare our operating performance to our competitors. We define
Adjusted EBITDA as net income before interest, taxes, depreciation,
and amortization, as adjusted to exclude gain (loss) on assets and
liabilities held in a foreign currency other than the functional
currency of a company subsidiary, share-based compensation expense
and related employer taxes, severance charges, restructuring
consulting fees, and other non-recurring charges. Adjusted EBITDA
margin is determined by calculating the percentage Adjusted EBITDA
is of total revenue. Adjusted net income is defined as net income,
as adjusted to exclude release of the valuation allowance, gain
(loss) on assets and liabilities held in a foreign currency other
than the functional currency of a company subsidiary, share-based
compensation expense and related employer taxes, severance charges,
restructuring consulting fees, and other non-recurring charges, all
of which are adjusted for the effect of income taxes. Management
believes that Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted
net income are helpful in highlighting management performance
trends because Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted net income exclude the results of decisions that are
outside the normal course of our business operations.
Our presentation of Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted net income are intended as supplemental measures of our
performance that are not required by, or presented in accordance
with, GAAP. Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted
net income should not be considered as alternatives to operating
profit, net income, earnings per share, or any other performance
measures derived in accordance with GAAP, or as measures of
operating cash flows or liquidity. Our presentation of Adjusted
EBITDA, Adjusted EBITDA margin, and Adjusted net income should not
be construed to imply that our future results will be unaffected by
similar items to those eliminated in this presentation. Adjusted
EBITDA, Adjusted EBITDA margin, and Adjusted net income are
included in this discussion because they are key metrics used by
management to assess our operating performance.
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted net income
are not defined under GAAP, are not measures of net income,
operating profit, or any other performance measures derived in
accordance with GAAP, and are subject to important limitations. Our
use of the terms Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted net income may not be comparable to similarly titled
measures of other companies in our industry and are not measures of
performance calculated in accordance with GAAP.
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted net income
have important limitations as analytical tools, and you should not
consider them in isolation or as substitutes for analysis of our
results as reported under GAAP.
In evaluating Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted net income, you should be aware that in the future we may
incur expenses similar to those eliminated in this
presentation.
We present revenue on a constant currency and fixed currency
basis to assess how our underlying businesses performed, excluding
the effect of foreign currency rate fluctuations, which we believe
is useful to management and investors. We calculate revenue on a
constant currency basis by applying the average foreign exchange
rate in effect during the comparable prior period. Dayforce revenue
per customer is calculated on a fixed currency basis by applying
the prior year average exchange rate to all comparable periods.
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to risks and uncertainties. All statements other than
statements of historical fact or relating to present facts or
current conditions included in this press release are
forward-looking statements. Forward-looking statements give our
current expectations and projections relating to our financial
condition, results of operations, plans, objectives, future
performance and business. You can identify forward-looking
statements by the fact that they do not relate strictly to
historical or current facts. Forward-looking statements in this
press release include statements relating to second quarter and
full year fiscal 2020, as well as those relating to future growth
initiatives. These statements may include words such as
“anticipate,” “estimate,” “expect,” “project,” “seek,” “plan,”
“intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,”
“should,” and other words and terms of similar meaning in
connection with any discussion of the timing or nature of future
operating or financial performance or other events but not all
forward-looking statements contain these identifying words. The
forward-looking statements contained in this press release are
based on assumptions that we have made in light of our industry
experience and our perceptions of historical trends, current
conditions, expected future developments and other factors that we
believe are appropriate under the circumstances. As you consider
this press release, you should understand that these statements are
not guarantees of performance or results. These assumptions and our
future performance or results involve risks and uncertainties (many
of which are beyond our control). These risks and uncertainties
include, but are not limited to, the following:
- the impact of the Coronavirus disease 2019 (“COVID-19”)
pandemic on our business, operations, and financial results;
- our inability to attain or to maintain profitability;
- significant competition for our solutions;
- our inability to continue to develop or to sell our existing
Cloud solutions;
- our inability to manage our growth effectively;
- the risk that we may not be able to successfully migrate our
Bureau customers to our Cloud solutions or to offset the decline in
Bureau revenue with Cloud revenue;
- the decline or slower than expected development of the market
for enterprise cloud computing;
- failure of our efforts to increase use of our Cloud solutions
and our other applications may not succeed;
- our failure to provide enhancements and new features and
modifications to our solutions;
- failure to comply the Federal Trade Commission’s ongoing
consent order regarding data protection;
- system interruptions or failures, including cyber-security
breaches, identity theft, or other disruptions that could
compromise our information;
- our failure to comply with applicable privacy, security, data,
and financial services laws, regulations and standards;
- changes in regulations governing financial services, privacy
concerns, and laws or other domestic or foreign data protection
regulations;
- the risk of loss caused by customer failure to repay
distribution of earned net wages and associated tax amounts made on
behalf of our customers for our Dayforce Wallet or other
services;
- our inability to successfully expand our current offerings into
new markets or further penetrate existing markets;
- our inability to meet the more complex configuration and
integration demands of our large customers;
- reductions in our customers’ employment levels or other overall
declines in the financial viability of our current and prospective
customers;
- the risk of our customers declining to renew their agreements
with us or renewing at lower performance fee levels;
- our failure to manage our technical operations
infrastructure;
- our inability to maintain necessary third party relationships,
and third party software licenses or there are errors in the
software we license;
- our inability to protect our intellectual property rights,
proprietary technology, information, processes, and know-how;
- our failure to keep pace with rapid technological changes and
evolving industry standards;
- general economic, political and market forces beyond our
control;
- changes in laws and regulations related to the Internet or
changes in the Internet infrastructure itself; or
- other risks and uncertainties described in our most recent
annual report on Form 10-K, subsequent quarterly reports on Form
10-Q, and other filings with the Securities and Exchange
Commission.
Additional factors or events that could cause our actual
performance to differ from these forward-looking statements may
emerge from time to time, and it is not possible for us to predict
all of them. Should one or more of these risks or uncertainties
materialize, or should any of our assumptions prove incorrect, our
actual financial condition, results of operations, future
performance and business may vary in material respects from the
performance projected in these forward-looking statements. In
addition to any factors and assumptions set forth above in this
press release, the material factors and assumptions used to develop
the forward-looking information include, but are not limited to:
the general economy remains stable; the competitive environment in
the HCM market remains stable; the demand environment for HCM
solutions remains stable; our implementation capabilities and cycle
times remain stable; foreign exchange rates, both current and those
used in developing forward-looking statements, specifically USD to
CAD, remain stable at, or near, current rates; we will be able to
maintain our relationships with our employees, customers and
partners; we will continue to attract qualified personnel to
support our development requirements and the support of our new and
existing customers; and that the risk factors noted above,
individually or collectively, do not have a material impact on the
Company. Any forward-looking statement made by us in this press
release speaks only as of the date on which it is made. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by law.
Ceridian HCM Holding Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions, except share
data)
|
|
March 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
(unaudited) |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
255.3 |
|
|
$ |
281.3 |
|
Trade and other receivables, net |
|
|
82.8 |
|
|
|
80.4 |
|
Prepaid expenses and other current assets |
|
|
68.9 |
|
|
|
57.9 |
|
Total current assets before customer trust funds |
|
|
407.0 |
|
|
|
419.6 |
|
Customer trust funds |
|
|
3,649.5 |
|
|
|
3,204.1 |
|
Total current assets |
|
|
4,056.5 |
|
|
|
3,623.7 |
|
Right of use lease asset |
|
|
34.8 |
|
|
|
32.0 |
|
Property, plant, and equipment,
net |
|
|
124.6 |
|
|
|
128.3 |
|
Goodwill |
|
|
1,939.5 |
|
|
|
1,973.5 |
|
Other intangible assets, net |
|
|
176.5 |
|
|
|
177.9 |
|
Other assets |
|
|
138.2 |
|
|
|
150.3 |
|
Total assets |
|
$ |
6,470.1 |
|
|
$ |
6,085.7 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
9.7 |
|
|
$ |
10.8 |
|
Current portion of long-term lease liabilities |
|
|
8.4 |
|
|
|
8.8 |
|
Accounts payable |
|
|
34.9 |
|
|
|
43.2 |
|
Deferred revenue |
|
|
26.8 |
|
|
|
25.5 |
|
Employee compensation and benefits |
|
|
49.3 |
|
|
|
75.9 |
|
Other accrued expenses |
|
|
18.4 |
|
|
|
13.9 |
|
Total current liabilities before customer trust funds
obligations |
|
|
147.5 |
|
|
|
178.1 |
|
Customer trust funds obligations |
|
|
3,605.2 |
|
|
|
3,193.6 |
|
Total current liabilities |
|
|
3,752.7 |
|
|
|
3,371.7 |
|
Long-term debt, less current
portion |
|
|
665.0 |
|
|
|
666.3 |
|
Employee benefit plans |
|
|
113.9 |
|
|
|
117.2 |
|
Long-term lease liabilities, less
current portion |
|
|
32.8 |
|
|
|
30.1 |
|
Other liabilities |
|
|
20.1 |
|
|
|
18.1 |
|
Total liabilities |
|
|
4,584.5 |
|
|
|
4,203.4 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $0.01 par, 500,000,000 shares authorized, 144,937,946
and 144,386,618 shares issued and outstanding as of March 31,
2020, and December 31, 2019, respectively |
|
|
1.4 |
|
|
|
1.4 |
|
Additional paid in capital |
|
|
2,473.0 |
|
|
|
2,449.1 |
|
Accumulated deficit |
|
|
(221.2 |
) |
|
|
(229.8 |
) |
Accumulated other comprehensive loss |
|
|
(367.6 |
) |
|
|
(338.4 |
) |
Total stockholders’ equity |
|
|
1,885.6 |
|
|
|
1,882.3 |
|
Total liabilities and equity |
|
$ |
6,470.1 |
|
|
$ |
6,085.7 |
|
Ceridian HCM Holding Inc.
Condensed Consolidated Statements of
Operations
(Unaudited, dollars in millions, except
share and per share data)
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2019 |
|
Revenue: |
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
181.5 |
|
|
$ |
172.8 |
|
Professional services and other |
|
|
41.2 |
|
|
|
30.9 |
|
Total revenue |
|
|
222.7 |
|
|
|
203.7 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Recurring services |
|
|
52.2 |
|
|
|
50.9 |
|
Professional services and other |
|
|
42.6 |
|
|
|
35.3 |
|
Product development and management |
|
|
17.6 |
|
|
|
15.2 |
|
Depreciation and amortization |
|
|
9.8 |
|
|
|
8.7 |
|
Total cost of revenue |
|
|
122.2 |
|
|
|
110.1 |
|
Gross profit |
|
|
100.5 |
|
|
|
93.6 |
|
Selling, general, and
administrative |
|
|
74.2 |
|
|
|
66.2 |
|
Operating profit |
|
|
26.3 |
|
|
|
27.4 |
|
Interest expense, net |
|
|
6.9 |
|
|
|
8.9 |
|
Other expense, net |
|
|
2.6 |
|
|
|
1.6 |
|
Income before income taxes |
|
|
16.8 |
|
|
|
16.9 |
|
Income tax expense |
|
|
8.2 |
|
|
|
5.7 |
|
Net income |
|
$ |
8.6 |
|
|
$ |
11.2 |
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
144,645,325 |
|
|
|
140,149,271 |
|
Diluted |
|
|
151,178,498 |
|
|
|
147,042,228 |
|
Ceridian HCM Holding Inc.
Condensed Consolidated Statements of Cash
Flows
(Unaudited, dollars in
millions)
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2019 |
|
Net income |
|
$ |
8.6 |
|
|
$ |
11.2 |
|
Adjustments to reconcile net
income to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit) |
|
|
4.1 |
|
|
|
(1.9 |
) |
Depreciation and amortization |
|
|
11.8 |
|
|
|
14.4 |
|
Amortization of debt issuance costs and debt discount |
|
|
0.3 |
|
|
|
0.3 |
|
Net periodic pension and postretirement cost |
|
|
0.8 |
|
|
|
1.3 |
|
Non-cash share-based compensation |
|
|
12.5 |
|
|
|
6.0 |
|
Other |
|
|
0.8 |
|
|
|
0.5 |
|
Changes in operating assets and liabilities excluding effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
(4.5 |
) |
|
|
(3.8 |
) |
Prepaid expenses and other current assets |
|
|
(7.5 |
) |
|
|
(7.0 |
) |
Accounts payable and other accrued expenses |
|
|
(2.0 |
) |
|
|
(5.8 |
) |
Deferred revenue |
|
|
2.1 |
|
|
|
(0.2 |
) |
Employee compensation and benefits |
|
|
(26.4 |
) |
|
|
(16.9 |
) |
Accrued interest |
|
|
— |
|
|
|
3.4 |
|
Accrued taxes |
|
|
0.9 |
|
|
|
(8.1 |
) |
Other assets and liabilities |
|
|
(0.1 |
) |
|
|
(2.2 |
) |
Net cash provided by (used in)
operating activities |
|
|
1.4 |
|
|
|
(8.8 |
) |
Cash Flows from Investing
Activities |
|
|
|
|
|
|
|
|
Purchase of customer trust funds
marketable securities |
|
|
(24.6 |
) |
|
|
(143.3 |
) |
Proceeds from sale and maturity
of customer trust funds marketable securities |
|
|
49.5 |
|
|
|
49.8 |
|
Expenditures for property, plant,
and equipment |
|
|
(4.9 |
) |
|
|
(4.0 |
) |
Expenditures for software and
technology |
|
|
(10.7 |
) |
|
|
(9.9 |
) |
Acquisition costs, net of cash
acquired |
|
|
— |
|
|
|
(10.2 |
) |
Net cash provided by (used in)
investing activities |
|
|
9.3 |
|
|
|
(117.6 |
) |
Cash Flows from Financing
Activities |
|
|
|
|
|
|
|
|
Increase in customer trust funds
obligations, net |
|
|
480.8 |
|
|
|
1,916.1 |
|
Proceeds from issuance of common
stock under share-based compensation plans |
|
|
11.4 |
|
|
|
20.1 |
|
Repayment of long-term debt
obligations |
|
|
(2.7 |
) |
|
|
(1.7 |
) |
Net cash provided by financing
activities |
|
|
489.5 |
|
|
|
1,934.5 |
|
Effect of exchange rate
changes on cash, restricted cash, and equivalents |
|
|
(14.5 |
) |
|
|
3.9 |
|
Net increase in cash, restricted
cash, and equivalents |
|
|
485.7 |
|
|
|
1,812.0 |
|
Cash, restricted cash, and
equivalents at beginning of period |
|
|
1,658.6 |
|
|
|
1,106.3 |
|
Cash, restricted cash, and
equivalents at end of period |
|
$ |
2,144.3 |
|
|
$ |
2,918.3 |
|
Reconciliation of cash,
restricted cash, and equivalents to the condensed
consolidated balance sheets |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
255.3 |
|
|
$ |
206.3 |
|
Restricted cash and equivalents
included in customer trust funds |
|
|
1,889.0 |
|
|
|
2,712.0 |
|
Total cash, restricted cash, and
equivalents |
|
$ |
2,144.3 |
|
|
$ |
2,918.3 |
|
Ceridian HCM Holding Inc.
Revenue Financial Measures
(Unaudited)
|
|
Three Months EndedMarch 31, |
|
|
Percentagechange
inrevenue
asreported |
|
|
Impact ofchanges
inforeigncurrency
(a) |
|
|
Percentagechange
inrevenue
onconstantcurrency basis
(a) |
|
|
|
2020 |
|
|
2019 |
|
|
2020 vs. 2019 |
|
|
|
|
|
|
2020 vs. 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce recurring services, excluding float |
|
$ |
114.0 |
|
|
$ |
87.6 |
|
|
|
30.1 |
% |
|
|
(0.3 |
)% |
|
|
30.4 |
% |
Dayforce float |
|
|
14.1 |
|
|
|
15.3 |
|
|
|
(7.8 |
)% |
|
|
(— |
)% |
|
|
(7.8 |
)% |
Total Dayforce recurring services |
|
|
128.1 |
|
|
|
102.9 |
|
|
|
24.5 |
% |
|
|
(0.2 |
)% |
|
|
24.7 |
% |
Powerpay recurring services, excluding float |
|
|
19.0 |
|
|
|
18.3 |
|
|
|
3.8 |
% |
|
|
(— |
)% |
|
|
3.8 |
% |
Powerpay float |
|
|
2.8 |
|
|
|
3.2 |
|
|
|
(12.5 |
)% |
|
|
(— |
)% |
|
|
(12.5 |
)% |
Total Powerpay recurring services |
|
|
21.8 |
|
|
|
21.5 |
|
|
|
1.4 |
% |
|
|
(— |
)% |
|
|
1.4 |
% |
Total Cloud recurring services |
|
|
149.9 |
|
|
|
124.4 |
|
|
|
20.5 |
% |
|
|
(0.2 |
)% |
|
|
20.7 |
% |
Dayforce professional services and other |
|
|
40.7 |
|
|
|
29.9 |
|
|
|
36.1 |
% |
|
|
(0.4 |
)% |
|
|
36.5 |
% |
Powerpay professional services and other |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
(— |
)% |
|
|
(— |
)% |
|
|
(— |
)% |
Total Cloud professional services and other |
|
|
41.0 |
|
|
|
30.2 |
|
|
|
35.8 |
% |
|
|
(0.3 |
)% |
|
|
36.1 |
% |
Total Cloud revenue |
|
|
190.9 |
|
|
|
154.6 |
|
|
|
23.5 |
% |
|
|
(0.2 |
)% |
|
|
23.7 |
% |
Bureau recurring services, excluding float |
|
|
28.9 |
|
|
|
42.6 |
|
|
|
(32.2 |
)% |
|
|
(0.3 |
)% |
|
|
(31.9 |
)% |
Bureau float |
|
|
2.7 |
|
|
|
5.8 |
|
|
|
(53.4 |
)% |
|
|
(— |
)% |
|
|
(53.4 |
)% |
Total Bureau recurring services |
|
|
31.6 |
|
|
|
48.4 |
|
|
|
(34.7 |
)% |
|
|
(0.2 |
)% |
|
|
(34.5 |
)% |
Bureau professional services and other |
|
|
0.2 |
|
|
|
0.7 |
|
|
|
(71.4 |
)% |
|
|
(— |
)% |
|
|
(71.4 |
)% |
Total Bureau revenue |
|
|
31.8 |
|
|
|
49.1 |
|
|
|
(35.2 |
)% |
|
|
(0.2 |
)% |
|
|
(35.0 |
)% |
Total revenue |
|
$ |
222.7 |
|
|
$ |
203.7 |
|
|
|
9.3 |
% |
|
|
(0.2 |
)% |
|
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce |
|
$ |
168.8 |
|
|
$ |
132.8 |
|
|
|
27.1 |
% |
|
|
(0.2 |
)% |
|
|
27.3 |
% |
Powerpay |
|
|
22.1 |
|
|
|
21.8 |
|
|
|
1.4 |
% |
|
|
(— |
)% |
|
|
1.4 |
% |
Total Cloud revenue |
|
$ |
190.9 |
|
|
$ |
154.6 |
|
|
|
23.5 |
% |
|
|
(0.2 |
)% |
|
|
23.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce, excluding float |
|
$ |
154.7 |
|
|
$ |
117.5 |
|
|
|
31.7 |
% |
|
|
(0.2 |
)% |
|
|
31.9 |
% |
Powerpay, excluding float |
|
|
19.3 |
|
|
|
18.6 |
|
|
|
3.8 |
% |
|
|
(— |
)% |
|
|
3.8 |
% |
Cloud revenue, excluding
float |
|
|
174.0 |
|
|
|
136.1 |
|
|
|
27.8 |
% |
|
|
(0.3 |
)% |
|
|
28.1 |
% |
Cloud float |
|
|
16.9 |
|
|
|
18.5 |
|
|
|
(8.6 |
)% |
|
|
(— |
)% |
|
|
(8.6 |
)% |
Total Cloud revenue |
|
$ |
190.9 |
|
|
$ |
154.6 |
|
|
|
23.5 |
% |
|
|
(0.2 |
)% |
|
|
23.7 |
% |
(a) We have calculated revenue on a constant currency basis by
applying the average foreign exchange rate in effect during the
comparable prior period.
Ceridian HCM Holding Inc.
Reconciliation of GAAP
to Non-GAAP Financial Measures
(Unaudited)
The following tables present a reconciliation of our reported
results to our non-GAAP financial measures Adjusted
EBITDA, Adjusted EBITDA margin, and Adjusted net income for all
periods presented:
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
(Dollars in millions) |
|
Operating profit |
|
$ |
26.3 |
|
|
$ |
27.4 |
|
Other expense, net |
|
|
(2.6 |
) |
|
|
(1.6 |
) |
Depreciation and amortization |
|
|
11.8 |
|
|
|
14.4 |
|
EBITDA (a) |
|
|
35.5 |
|
|
|
40.2 |
|
Intercompany foreign exchange loss |
|
|
1.8 |
|
|
|
0.3 |
|
Share-based compensation (b) |
|
|
12.7 |
|
|
|
6.0 |
|
Severance charges (c) |
|
|
4.0 |
|
|
|
2.1 |
|
Restructuring consulting fees (d) |
|
|
1.5 |
|
|
|
1.2 |
|
Other non-recurring charges (e) |
|
|
(0.3 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
55.2 |
|
|
$ |
49.8 |
|
Adjusted EBITDA margin |
|
|
24.8 |
% |
|
|
24.4 |
% |
(a) We define EBITDA as net income before interest, taxes, and
depreciation and amortization.(b) Represents share-based
compensation expense and related employer taxes. (c) Represents
costs for severance compensation paid to employees whose positions
have been eliminated or who have been terminated not for cause.(d)
Represents consulting fees and expenses incurred during the periods
presented in connection with any acquisition, investment,
disposition, recapitalization, equity offering, issuance or
repayment of debt, issuance of equity interests, or refinancing.(e)
Represents gain on unrecovered duplicate payments associated with
an isolated service incident.
|
|
Three Months Ended March 31, 2020 |
|
|
AsReported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income taxeffects (b) |
|
|
Adjusted |
|
|
|
|
|
(Dollars in millions, except per share data) |
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
52.2 |
|
|
$ |
0.8 |
|
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
50.6 |
Professional services and other |
|
|
42.6 |
|
|
|
0.5 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
41.3 |
Product development and management |
|
|
17.6 |
|
|
|
0.9 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
16.4 |
Depreciation and amortization |
|
|
9.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.8 |
Total cost of revenue |
|
|
122.2 |
|
|
|
2.2 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
118.1 |
Sales and marketing |
|
|
40.7 |
|
|
|
2.2 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
37.7 |
General and administrative |
|
|
33.5 |
|
|
|
8.3 |
|
|
|
1.3 |
|
|
|
1.2 |
|
|
|
— |
|
|
|
22.7 |
Operating profit |
|
|
26.3 |
|
|
|
12.7 |
|
|
|
4.0 |
|
|
|
1.2 |
|
|
|
— |
|
|
|
44.2 |
Other expense, net |
|
|
2.6 |
|
|
|
— |
|
|
|
— |
|
|
|
1.8 |
|
|
|
— |
|
|
|
0.8 |
Depreciation and
amortization |
|
|
11.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.8 |
EBITDA |
|
$ |
35.5 |
|
|
$ |
12.7 |
|
|
$ |
4.0 |
|
|
$ |
3.0 |
|
|
$ |
— |
|
|
$ |
55.2 |
Net income |
|
$ |
8.6 |
|
|
$ |
12.7 |
|
|
$ |
4.0 |
|
|
$ |
3.0 |
|
|
$ |
(6.3 |
) |
|
$ |
22.0 |
Net income per share- basic
(c) |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
(0.04 |
) |
|
$ |
0.15 |
Net income per share- diluted
(c) |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
(0.04 |
) |
|
$ |
0.15 |
(a) Other includes intercompany foreign exchange loss,
restructuring consulting fees, and other non-recurring charges.(b)
Income tax effects have been calculated based on the statutory tax
rates in effect in the U.S. and foreign jurisdictions during the
quarter. (c) GAAP and Adjusted basic and diluted net income per
share are calculated based upon 144,645,325 and 151,178,498
weighted-average shares of common stock, respectively.
|
|
Three Months Ended March 31, 2019 |
|
|
AsReported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income taxeffects (b) |
|
|
Adjusted |
|
|
|
|
|
(Dollars in millions, except per share data) |
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
50.9 |
|
|
$ |
0.4 |
|
|
$ |
0.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
50.3 |
Professional services and other |
|
|
35.3 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
34.9 |
Product development and management |
|
|
15.2 |
|
|
|
0.5 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
14.6 |
Depreciation and amortization |
|
|
8.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.7 |
Total cost of revenue |
|
|
110.1 |
|
|
|
1.1 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
108.5 |
Sales and marketing |
|
|
35.2 |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
|
|
33.2 |
General and administrative |
|
|
31.0 |
|
|
|
3.9 |
|
|
|
0.6 |
|
|
|
1.2 |
|
|
|
— |
|
|
|
25.3 |
Operating profit |
|
|
27.4 |
|
|
|
6.0 |
|
|
|
2.1 |
|
|
|
1.2 |
|
|
|
— |
|
|
|
36.7 |
Other expense, net |
|
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
1.3 |
Depreciation and
amortization |
|
|
14.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14.4 |
EBITDA |
|
$ |
40.2 |
|
|
$ |
6.0 |
|
|
$ |
2.1 |
|
|
$ |
1.5 |
|
|
$ |
— |
|
|
$ |
49.8 |
Net income |
|
$ |
11.2 |
|
|
$ |
6.0 |
|
|
$ |
2.1 |
|
|
$ |
1.5 |
|
|
$ |
(0.4 |
) |
|
$ |
20.4 |
Net income per share- basic
(c) |
|
$ |
0.08 |
|
|
$ |
0.05 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.15 |
Net income per share- diluted
(c) |
|
$ |
0.08 |
|
|
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.14 |
(a) Other includes intercompany foreign exchange gain and
restructuring consulting fees.(b) We have not applied an income tax
effect to expenses incurred in the U.S. due to a full valuation
allowance against our deferred tax assets as of March 31, 2019.
Income tax effect in foreign jurisdictions is calculated based on
the statutory tax rates during the quarter.(c) GAAP and Adjusted
basic and diluted net income per share are calculated based upon
140,149,271 and 147,042,228 weighted-average shares of common
stock, respectively.
Source: Ceridian HCM Holding Inc.
For further information, please contact:
Investor RelationsJeremy JohnsonVice President, Finance and
Investor RelationsCeridian HCM Holding
Inc.1-844-829-9499investors@ceridian.com
Public RelationsTeri MurphyDirector, Corporate
CommunicationsCeridian HCM Holding
Inc.1-647-417-2117teri.murphy@ceridian.com
Ceridian HCM (TSX:CDAY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ceridian HCM (TSX:CDAY)
Historical Stock Chart
From Apr 2023 to Apr 2024