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 second
quarter ended June 30, 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 second quarter financial performance was
strong, and the business continues to perform well,” said David
Ossip, Chairman and Chief Executive Officer of Ceridian. “We
are seeing increased demand for Dayforce as employers accelerate
technology investments to increase productivity, to ensure the
physical, mental, and physical health of employees, and to drive
hard dollar returns for their businesses.”
The average U.S. dollar to Canadian dollar foreign
exchange rate was $1.39, with a daily range of $1.34 to $1.42, for
the three months ended June 30, 2020, compared to $1.34, with
a daily range of $1.31 to $1.35, for the three months ended
June 30, 2019. As of June 30, 2020, the U.S. dollar
to Canadian dollar foreign exchange rate was $1.36. 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 Second Quarter
2020
The financial highlights below are on a
year-over-year basis, unless otherwise stated.
Dayforce Revenue
- Dayforce recurring services revenue was $118.5 million for the
second quarter of 2020, an increase of 15.7%, or 16.6% on a
constant currency basis.
- Excluding float revenue, Dayforce recurring services revenue
was $110.2 million for the second quarter of 2020, an increase of
23.3%, or 24.2% on a constant currency basis.
- Dayforce revenue was $151.5 million for the second quarter
of 2020, an increase of 12.6%, or 13.5% on a constant currency
basis.
- Excluding float revenue, Dayforce revenue was $143.2 million
for the second quarter of 2020, an increase of 17.9%, or 18.8% on a
constant currency basis.
Revenue
- Cloud revenue, which includes both Dayforce and Powerpay, was
$167.9 million for the second quarter of 2020, an increase of
7.8%, or 8.9% on a constant currency basis.
- Excluding float revenue, Cloud revenue was $157.8 million for
the second quarter of 2020, an increase of 12.9%, or 13.9% on a
constant currency basis.
- Total revenue, which includes revenue from both our Cloud and
Bureau solutions, was $192.6 million for the second quarter of
2020, a decline of 1.9%, or 0.9% on a constant currency basis.
- Excluding float revenue, total revenue was $181.1 million for
the second quarter of 2020, an increase of 2.9%, or 3.9% on a
constant currency basis.
Net Income and Net Income Per Share
- Net income was $5.5 million for the second quarter of
2020, compared to $6.3 million. Adjusted net income was $19.4
million for the second quarter of 2020, compared to $18.3
million.
- Diluted net income per share was $0.04 for the second quarter
of 2020, compared to $0.04. Adjusted diluted net income per share
was $0.13 for the second quarter of 2020, compared to $0.12.
Diluted weighted average common shares outstanding were 151.4
million and 148.3 million for the second quarter of 2020 and 2019,
respectively.
Gross Margin, Operating Profit, and Adjusted
EBITDA
- Gross margin of 40.8% for the second quarter of 2020, compared
to 44.8%.
- Cloud recurring services gross margin improved to 70.7% for the
second quarter of 2020, compared to 69.3%, and excluding float
revenue, Cloud recurring service gross margin improved to 68.4%,
compared to 64.8%.
- Professional services and other gross margin declined to
(13.1)% for the second quarter of 2020, compared to (4.3)%.
- Operating profit was $4.0 million for the second quarter of
2020, compared to $18.7 million.
- Adjusted EBITDA declined 14.8% to $37.5 million for the
second quarter of 2020, compared to $44.0 million.
- Excluding float revenue, Adjusted EBITDA increased 9.7%.
Balance Sheet
- Cash and equivalents were $526.9 million as of
June 30, 2020, compared to $281.3 million as of
December 31, 2019.
- Total debt was $967.2 million as of June 30, 2020, an
increase of $290.1 million, compared to $677.1 million as
of December 31, 2019. On April 2, 2020, in light of the
uncertainty and volatility in the global financial markets
resulting from the COVID-19 pandemic, we elected to borrow $295.0
million under our revolving credit facility as a precautionary
measure to increase our cash position and to preserve financial
flexibility.
Dayforce Live Customer Count
- 4,603 Dayforce customers were live on the Dayforce platform as
of June 30, 2020, a net increase of 597 customers, compared to
4,006 Dayforce customers as of June 30, 2019, and a net
increase of 123 customers, compared to 4,480 as of March 31,
2020.
- Excluding float revenue and on a constant currency basis,
Dayforce revenue per customer was $125,766 for the trailing twelve
months ended June 30, 2020, an increase of 12.6% from $111,658
for the trailing twelve months ended June 30, 2019.
Business Outlook
Based on information available to us as of August
5, 2020, we are issuing the following guidance for the third
quarter of 2020:
- Dayforce recurring services revenue of $118 million to $120
million, or an increase of approximately 8% to 10% on both a GAAP
and constant currency basis. Excluding float revenue, Dayforce
recurring services revenue is expected to grow approximately 14% to
16% on both a GAAP and constant currency basis.
- Dayforce revenue of $155 million to $158 million, or an
increase of approximately 8% to 10% on a GAAP basis and 8% to 11%
on a constant currency basis. Excluding float revenue, Dayforce
revenue is expected to grow approximately 12% to 14% on a GAAP
basis and 13% to 15% on a constant currency basis.
- Cloud revenue of $173 million to $177 million, or an increase
of approximately 5% to 7% on a GAAP basis and 5% to 8% on a
constant currency basis. Excluding float revenue, Cloud revenue is
expected to grow approximately 9% to 11% on a GAAP basis and 10% to
12% on a constant currency basis.
- Total revenue of $198 million to $203 million, or a decline of
approximately 2% to flat on a GAAP basis, and a decline of
approximately 1% to an increase of approximately 1% on a constant
currency basis. Excluding float revenue, total revenue is expected
to grow approximately 2% to 5% on a GAAP basis and 3% to 6% on a
constant currency basis.
- Float revenue of approximately $7 million within Dayforce
revenue, $9 million within Cloud revenue, and $10 million within
total revenue.
- Adjusted EBITDA of $27 million to $32 million.
Our third quarter 2020 guidance assumes an average
U.S. dollar to Canadian dollar foreign exchange rate of $1.36,
compared to an average rate of $1.32 in the third quarter of 2019.
We have not reconciled the Adjusted EBITDA range for the third
quarter of 2020 to the directly comparable GAAP financial measure
because applicable information for the future period, on which this
reconciliation would be based, is not readily available due to
uncertainty regarding, and the potential variability of,
depreciation and amortization, share-based compensation expense and
related employer taxes, changes in foreign currency exchange rates,
and other items.
While we are not providing guidance for the fourth
quarter given the uncertainty in the market, we believe that the
greatest impact of COVID-19 will be reflected in the third quarter
of 2020. Assuming employment levels continue to improve, we expect
Dayforce recurring services revenue growth, excluding float revenue
and on a constant currency basis, to accelerate and to exceed 18%
in the fourth quarter.
Conference Call Details
Ceridian will host a conference call on August 5,
2020 at 5:00 p.m. Eastern Time to discuss the financial results for
the second 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 833-979-2698 (USA)
or 236-714-2174 (International) and entering the conference ID:
3190826. 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
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 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 constant 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 third quarter 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)
|
|
June 30, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
(unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
526.9 |
|
|
$ |
281.3 |
|
Trade and other receivables, net |
|
|
92.9 |
|
|
|
80.4 |
|
Prepaid expenses and other current assets |
|
|
70.4 |
|
|
|
57.9 |
|
Total current assets before customer trust funds |
|
|
690.2 |
|
|
|
419.6 |
|
Customer trust funds |
|
|
2,659.8 |
|
|
|
3,204.1 |
|
Total current assets |
|
|
3,350.0 |
|
|
|
3,623.7 |
|
Right of use lease asset |
|
|
37.6 |
|
|
|
32.0 |
|
Property, plant, and equipment,
net |
|
|
129.6 |
|
|
|
128.3 |
|
Goodwill |
|
|
2,004.5 |
|
|
|
1,973.5 |
|
Other intangible assets, net |
|
|
195.5 |
|
|
|
177.9 |
|
Other assets |
|
|
136.7 |
|
|
|
150.3 |
|
Total assets |
|
$ |
5,853.9 |
|
|
$ |
6,085.7 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
8.6 |
|
|
$ |
10.8 |
|
Current portion of long-term lease liabilities |
|
|
10.2 |
|
|
|
8.8 |
|
Accounts payable |
|
|
36.5 |
|
|
|
43.2 |
|
Deferred revenue |
|
|
24.0 |
|
|
|
25.5 |
|
Employee compensation and benefits |
|
|
56.3 |
|
|
|
75.9 |
|
Other accrued expenses |
|
|
14.1 |
|
|
|
13.9 |
|
Total current liabilities before customer trust funds
obligations |
|
|
149.7 |
|
|
|
178.1 |
|
Customer trust funds obligations |
|
|
2,594.8 |
|
|
|
3,193.6 |
|
Total current liabilities |
|
|
2,744.5 |
|
|
|
3,371.7 |
|
Long-term debt, less current
portion |
|
|
958.6 |
|
|
|
666.3 |
|
Employee benefit plans |
|
|
111.4 |
|
|
|
117.2 |
|
Long-term lease liabilities, less
current portion |
|
|
34.2 |
|
|
|
30.1 |
|
Other liabilities |
|
|
19.5 |
|
|
|
18.1 |
|
Total liabilities |
|
|
3,868.2 |
|
|
|
4,203.4 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $0.01 par, 500,000,000 shares authorized, 146,803,932
and 144,386,618 shares issued and outstanding as of June 30,
2020, and December 31, 2019, respectively |
|
|
1.5 |
|
|
|
1.4 |
|
Additional paid in capital |
|
|
2,528.4 |
|
|
|
2,449.1 |
|
Accumulated deficit |
|
|
(215.7 |
) |
|
|
(229.8 |
) |
Accumulated other comprehensive loss |
|
|
(328.5 |
) |
|
|
(338.4 |
) |
Total stockholders’ equity |
|
|
1,985.7 |
|
|
|
1,882.3 |
|
Total liabilities and equity |
|
$ |
5,853.9 |
|
|
$ |
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 June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
159.1 |
|
|
$ |
163.5 |
|
|
$ |
340.6 |
|
|
$ |
336.3 |
|
Professional services and other |
|
|
33.5 |
|
|
|
32.8 |
|
|
|
74.7 |
|
|
|
63.7 |
|
Total revenue |
|
|
192.6 |
|
|
|
196.3 |
|
|
|
415.3 |
|
|
|
400.0 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
|
49.3 |
|
|
|
48.7 |
|
|
|
101.5 |
|
|
|
99.6 |
|
Professional services and other |
|
|
37.9 |
|
|
|
34.2 |
|
|
|
80.5 |
|
|
|
69.5 |
|
Product development and management |
|
|
17.0 |
|
|
|
16.4 |
|
|
|
34.6 |
|
|
|
31.6 |
|
Depreciation and amortization |
|
|
9.8 |
|
|
|
9.0 |
|
|
|
19.6 |
|
|
|
17.7 |
|
Total cost of revenue |
|
|
114.0 |
|
|
|
108.3 |
|
|
|
236.2 |
|
|
|
218.4 |
|
Gross profit |
|
|
78.6 |
|
|
|
88.0 |
|
|
|
179.1 |
|
|
|
181.6 |
|
Selling, general, and
administrative |
|
|
74.6 |
|
|
|
69.3 |
|
|
|
148.8 |
|
|
|
135.5 |
|
Operating profit |
|
|
4.0 |
|
|
|
18.7 |
|
|
|
30.3 |
|
|
|
46.1 |
|
Interest expense, net |
|
|
6.6 |
|
|
|
8.5 |
|
|
|
13.5 |
|
|
|
17.4 |
|
Other expense, net |
|
|
0.3 |
|
|
|
1.5 |
|
|
|
2.9 |
|
|
|
3.1 |
|
(Loss) income before income
taxes |
|
|
(2.9 |
) |
|
|
8.7 |
|
|
|
13.9 |
|
|
|
25.6 |
|
Income tax (benefit) expense |
|
|
(8.4 |
) |
|
|
2.4 |
|
|
|
(0.2 |
) |
|
|
8.1 |
|
Net income |
|
$ |
5.5 |
|
|
$ |
6.3 |
|
|
$ |
14.1 |
|
|
$ |
17.5 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
$ |
0.10 |
|
|
$ |
0.12 |
|
Diluted |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
$ |
0.09 |
|
|
$ |
0.12 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
145,593,019 |
|
|
|
141,149,009 |
|
|
|
145,119,172 |
|
|
|
140,651,902 |
|
Diluted |
|
|
151,444,901 |
|
|
|
148,331,846 |
|
|
|
151,321,093 |
|
|
|
147,761,174 |
|
Ceridian HCM Holding Inc.
Condensed Consolidated Statements of Cash
Flows
(Unaudited, dollars in
millions)
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
Net income |
|
$ |
14.1 |
|
|
$ |
17.5 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit) |
|
|
0.3 |
|
|
|
(4.8 |
) |
Depreciation and amortization |
|
|
23.9 |
|
|
|
29.0 |
|
Amortization of debt issuance costs and debt discount |
|
|
0.6 |
|
|
|
0.6 |
|
Net periodic pension and postretirement cost |
|
|
1.7 |
|
|
|
2.6 |
|
Non-cash share-based compensation |
|
|
27.8 |
|
|
|
15.6 |
|
Other |
|
|
0.9 |
|
|
|
0.8 |
|
Changes in operating assets and liabilities excluding effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
(3.8 |
) |
|
|
(3.4 |
) |
Prepaid expenses and other current assets |
|
|
(6.4 |
) |
|
|
(11.1 |
) |
Accounts payable and other accrued expenses |
|
|
(1.8 |
) |
|
|
(5.7 |
) |
Deferred revenue |
|
|
(1.1 |
) |
|
|
(1.3 |
) |
Employee compensation and benefits |
|
|
(21.3 |
) |
|
|
(19.5 |
) |
Accrued interest |
|
|
0.2 |
|
|
|
0.4 |
|
Accrued taxes |
|
|
(3.7 |
) |
|
|
(8.1 |
) |
Other assets and liabilities |
|
|
(7.5 |
) |
|
|
(2.4 |
) |
Net cash provided by operating
activities |
|
|
23.9 |
|
|
|
10.2 |
|
Cash Flows from Investing
Activities |
|
|
|
|
|
|
|
|
Purchase of customer trust funds
marketable securities |
|
|
(24.8 |
) |
|
|
(297.6 |
) |
Proceeds from sale and maturity
of customer trust funds marketable securities |
|
|
214.0 |
|
|
|
232.3 |
|
Expenditures for property, plant,
and equipment |
|
|
(9.9 |
) |
|
|
(7.7 |
) |
Expenditures for software and
technology |
|
|
(19.8 |
) |
|
|
(18.7 |
) |
Acquisition costs, net of cash
and restricted cash acquired |
|
|
(58.3 |
) |
|
|
(10.2 |
) |
Net cash provided by (used in)
investing activities |
|
|
101.2 |
|
|
|
(101.9 |
) |
Cash Flows from Financing
Activities |
|
|
|
|
|
|
|
|
(Decrease) increase in customer
trust funds obligations, net |
|
|
(571.4 |
) |
|
|
1,308.9 |
|
Proceeds from issuance of common
stock under share-based compensation plans |
|
|
51.5 |
|
|
|
44.1 |
|
Repayment of long-term debt
obligations |
|
|
(5.4 |
) |
|
|
(3.4 |
) |
Proceeds from revolving credit
facility |
|
|
295.0 |
|
|
|
— |
|
Net cash (used in) provided by
financing activities |
|
|
(230.3 |
) |
|
|
1,349.6 |
|
Effect of exchange rate
changes on cash, restricted cash, and equivalents |
|
|
(12.4 |
) |
|
|
7.4 |
|
Net (decrease) increase in cash,
restricted cash, and equivalents |
|
|
(117.6 |
) |
|
|
1,265.3 |
|
Cash, restricted cash, and
equivalents at beginning of period |
|
|
1,658.6 |
|
|
|
1,106.3 |
|
Cash, restricted cash, and
equivalents at end of period |
|
$ |
1,541.0 |
|
|
$ |
2,371.6 |
|
Reconciliation of cash,
restricted cash, and equivalents to the condensed
consolidated balance sheets |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
526.9 |
|
|
$ |
237.9 |
|
Restricted cash and equivalents
included in customer trust funds |
|
|
1,014.1 |
|
|
|
2,133.7 |
|
Total cash, restricted cash, and
equivalents |
|
$ |
1,541.0 |
|
|
$ |
2,371.6 |
|
Ceridian HCM Holding Inc.
Revenue Financial Measures
(Unaudited)
|
|
Three Months Ended June 30, |
|
|
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 |
|
$ |
110.2 |
|
|
$ |
89.4 |
|
|
|
23.3 |
% |
|
|
(0.9 |
)% |
|
|
24.2 |
% |
Dayforce float |
|
|
8.3 |
|
|
|
13.0 |
|
|
|
(36.2 |
)% |
|
|
(0.8 |
)% |
|
|
(35.4 |
)% |
Total Dayforce recurring services |
|
|
118.5 |
|
|
|
102.4 |
|
|
|
15.7 |
% |
|
|
(0.9 |
)% |
|
|
16.6 |
% |
Powerpay recurring services, excluding float |
|
|
14.4 |
|
|
|
18.0 |
|
|
|
(20.0 |
)% |
|
|
(2.2 |
)% |
|
|
(17.8 |
)% |
Powerpay float |
|
|
1.8 |
|
|
|
2.9 |
|
|
|
(37.9 |
)% |
|
|
(3.4 |
)% |
|
|
(34.5 |
)% |
Total Powerpay recurring services |
|
|
16.2 |
|
|
|
20.9 |
|
|
|
(22.5 |
)% |
|
|
(2.4 |
)% |
|
|
(20.1 |
)% |
Total Cloud recurring services |
|
|
134.7 |
|
|
|
123.3 |
|
|
|
9.2 |
% |
|
|
(1.2 |
)% |
|
|
10.4 |
% |
Dayforce professional services and other |
|
|
33.0 |
|
|
|
32.1 |
|
|
|
2.8 |
% |
|
|
(0.9 |
)% |
|
|
3.7 |
% |
Powerpay professional services and other |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
(33.3 |
)% |
|
|
(— |
)% |
|
|
(33.3 |
)% |
Total Cloud professional services and other |
|
|
33.2 |
|
|
|
32.4 |
|
|
|
2.5 |
% |
|
|
(0.9 |
)% |
|
|
3.4 |
% |
Total Cloud revenue |
|
|
167.9 |
|
|
|
155.7 |
|
|
|
7.8 |
% |
|
|
(1.1 |
)% |
|
|
8.9 |
% |
Bureau recurring services, excluding float |
|
|
23.0 |
|
|
|
35.8 |
|
|
|
(35.8 |
)% |
|
|
(0.6 |
)% |
|
|
(35.2 |
)% |
Bureau float |
|
|
1.4 |
|
|
|
4.4 |
|
|
|
(68.2 |
)% |
|
|
(2.3 |
)% |
|
|
(65.9 |
)% |
Total Bureau recurring services |
|
|
24.4 |
|
|
|
40.2 |
|
|
|
(39.3 |
)% |
|
|
(0.7 |
)% |
|
|
(38.6 |
)% |
Bureau professional services and other |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
(25.0 |
)% |
|
|
(— |
)% |
|
|
(25.0 |
)% |
Total Bureau revenue |
|
|
24.7 |
|
|
|
40.6 |
|
|
|
(39.2 |
)% |
|
|
(0.8 |
)% |
|
|
(38.4 |
)% |
Total revenue |
|
$ |
192.6 |
|
|
$ |
196.3 |
|
|
|
(1.9 |
)% |
|
|
(1.0 |
)% |
|
|
(0.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce |
|
$ |
151.5 |
|
|
$ |
134.5 |
|
|
|
12.6 |
% |
|
|
(0.9 |
)% |
|
|
13.5 |
% |
Powerpay |
|
|
16.4 |
|
|
|
21.2 |
|
|
|
(22.6 |
)% |
|
|
(2.3 |
)% |
|
|
(20.3 |
)% |
Total Cloud revenue |
|
$ |
167.9 |
|
|
$ |
155.7 |
|
|
|
7.8 |
% |
|
|
(1.1 |
)% |
|
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce, excluding float |
|
$ |
143.2 |
|
|
$ |
121.5 |
|
|
|
17.9 |
% |
|
|
(0.9 |
)% |
|
|
18.8 |
% |
Powerpay, excluding float |
|
|
14.6 |
|
|
|
18.3 |
|
|
|
(20.2 |
)% |
|
|
(2.2 |
)% |
|
|
(18.0 |
)% |
Cloud revenue, excluding
float |
|
|
157.8 |
|
|
|
139.8 |
|
|
|
12.9 |
% |
|
|
(1.0 |
)% |
|
|
13.9 |
% |
Cloud float |
|
|
10.1 |
|
|
|
15.9 |
|
|
|
(36.5 |
)% |
|
|
(1.3 |
)% |
|
|
(35.2 |
)% |
Total Cloud revenue |
|
$ |
167.9 |
|
|
$ |
155.7 |
|
|
|
7.8 |
% |
|
|
(1.1 |
)% |
|
|
8.9 |
% |
- 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.
Revenue Financial Measures
(Unaudited)
|
|
Six Months Ended June 30, |
|
|
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 |
|
$ |
224.2 |
|
|
$ |
177.0 |
|
|
|
26.7 |
% |
|
|
(0.5 |
)% |
|
|
27.2 |
% |
Dayforce float |
|
|
22.4 |
|
|
|
28.3 |
|
|
|
(20.8 |
)% |
|
|
(0.3 |
)% |
|
|
(20.5 |
)% |
Total Dayforce recurring services |
|
|
246.6 |
|
|
|
205.3 |
|
|
|
20.1 |
% |
|
|
(0.6 |
)% |
|
|
20.7 |
% |
Powerpay recurring services, excluding float |
|
|
33.4 |
|
|
|
36.3 |
|
|
|
(8.0 |
)% |
|
|
(1.1 |
)% |
|
|
(6.9 |
)% |
Powerpay float |
|
|
4.6 |
|
|
|
6.1 |
|
|
|
(24.6 |
)% |
|
|
(1.6 |
)% |
|
|
(23.0 |
)% |
Total Powerpay recurring services |
|
|
38.0 |
|
|
|
42.4 |
|
|
|
(10.4 |
)% |
|
|
(1.2 |
)% |
|
|
(9.2 |
)% |
Total Cloud recurring services |
|
|
284.6 |
|
|
|
247.7 |
|
|
|
14.9 |
% |
|
|
(0.6 |
)% |
|
|
15.5 |
% |
Dayforce professional services and other |
|
|
73.7 |
|
|
|
62.0 |
|
|
|
18.9 |
% |
|
|
(0.6 |
)% |
|
|
19.5 |
% |
Powerpay professional services and other |
|
|
0.5 |
|
|
|
0.6 |
|
|
|
(16.7 |
)% |
|
|
(— |
)% |
|
|
(16.7 |
)% |
Total Cloud professional services and other |
|
|
74.2 |
|
|
|
62.6 |
|
|
|
18.5 |
% |
|
|
(0.7 |
)% |
|
|
19.2 |
% |
Total Cloud revenue |
|
|
358.8 |
|
|
|
310.3 |
|
|
|
15.6 |
% |
|
|
(0.7 |
)% |
|
|
16.3 |
% |
Bureau recurring services, excluding float |
|
|
51.9 |
|
|
|
78.4 |
|
|
|
(33.8 |
)% |
|
|
(0.4 |
)% |
|
|
(33.4 |
)% |
Bureau float |
|
|
4.1 |
|
|
|
10.2 |
|
|
|
(59.8 |
)% |
|
|
(1.0 |
)% |
|
|
(58.8 |
)% |
Total Bureau recurring services |
|
|
56.0 |
|
|
|
88.6 |
|
|
|
(36.8 |
)% |
|
|
(0.5 |
)% |
|
|
(36.3 |
)% |
Bureau professional services and other |
|
|
0.5 |
|
|
|
1.1 |
|
|
|
(54.5 |
)% |
|
|
(— |
)% |
|
|
(54.5 |
)% |
Total Bureau revenue |
|
|
56.5 |
|
|
|
89.7 |
|
|
|
(37.0 |
)% |
|
|
(0.4 |
)% |
|
|
(36.6 |
)% |
Total revenue |
|
$ |
415.3 |
|
|
$ |
400.0 |
|
|
|
3.8 |
% |
|
|
(0.6 |
)% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce |
|
$ |
320.3 |
|
|
$ |
267.3 |
|
|
|
19.8 |
% |
|
|
(0.6 |
)% |
|
|
20.4 |
% |
Powerpay |
|
|
38.5 |
|
|
|
43.0 |
|
|
|
(10.5 |
)% |
|
|
(1.2 |
)% |
|
|
(9.3 |
)% |
Total Cloud revenue |
|
$ |
358.8 |
|
|
$ |
310.3 |
|
|
|
15.6 |
% |
|
|
(0.7 |
)% |
|
|
16.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce, excluding float |
|
$ |
297.9 |
|
|
$ |
239.0 |
|
|
|
24.6 |
% |
|
|
(0.6 |
)% |
|
|
25.2 |
% |
Powerpay, excluding float |
|
|
33.9 |
|
|
|
36.9 |
|
|
|
(8.1 |
)% |
|
|
(1.1 |
)% |
|
|
(7.0 |
)% |
Cloud revenue, excluding
float |
|
|
331.8 |
|
|
|
275.9 |
|
|
|
20.3 |
% |
|
|
(0.6 |
)% |
|
|
20.9 |
% |
Cloud float |
|
|
27.0 |
|
|
|
34.4 |
|
|
|
(21.5 |
)% |
|
|
(0.6 |
)% |
|
|
(20.9 |
)% |
Total Cloud revenue |
|
$ |
358.8 |
|
|
$ |
310.3 |
|
|
|
15.6 |
% |
|
|
(0.7 |
)% |
|
|
16.3 |
% |
- 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 June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
|
Operating profit |
|
$ |
4.0 |
|
|
$ |
18.7 |
|
|
$ |
30.3 |
|
|
$ |
46.1 |
|
Other expense, net |
|
|
(0.3 |
) |
|
|
(1.5 |
) |
|
|
(2.9 |
) |
|
|
(3.1 |
) |
Depreciation and amortization |
|
|
12.1 |
|
|
|
14.6 |
|
|
|
23.9 |
|
|
|
29.0 |
|
EBITDA (a) |
|
|
15.8 |
|
|
|
31.8 |
|
|
|
51.3 |
|
|
|
72.0 |
|
Intercompany foreign exchange (gain) loss |
|
|
(0.5 |
) |
|
|
0.2 |
|
|
|
1.3 |
|
|
|
0.5 |
|
Share-based compensation (b) |
|
|
16.5 |
|
|
|
9.6 |
|
|
|
29.2 |
|
|
|
15.6 |
|
Severance charges (c) |
|
|
0.7 |
|
|
|
1.5 |
|
|
|
4.7 |
|
|
|
3.6 |
|
Restructuring consulting fees (d) |
|
|
5.1 |
|
|
|
0.9 |
|
|
|
6.6 |
|
|
|
2.1 |
|
Other non-recurring charges (e) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
37.5 |
|
|
$ |
44.0 |
|
|
$ |
92.7 |
|
|
$ |
93.8 |
|
Adjusted EBITDA margin |
|
|
19.5 |
% |
|
|
22.4 |
% |
|
|
22.3 |
% |
|
|
23.5 |
% |
- We define EBITDA as net income before interest, taxes, and
depreciation and amortization.
- Represents share-based compensation expense and related
employer taxes.
- Represents costs for severance compensation paid to employees
whose positions have been eliminated or who have been terminated
not for cause.
- 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.
- Represents gain on unrecovered duplicate payments associated
with an isolated service incident.
|
|
Three Months Ended June 30, 2020 |
|
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income tax effects (b) |
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
49.3 |
|
|
$ |
1.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
47.4 |
|
Professional services and other |
|
|
37.9 |
|
|
|
1.0 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
36.8 |
|
Product development and management |
|
|
17.0 |
|
|
|
1.4 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
15.5 |
|
Depreciation and amortization |
|
|
9.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.8 |
|
Total cost of revenue |
|
|
114.0 |
|
|
|
4.3 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
109.5 |
|
Sales and marketing |
|
|
36.0 |
|
|
|
1.8 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
34.0 |
|
General and administrative |
|
|
38.6 |
|
|
|
10.4 |
|
|
|
0.3 |
|
|
|
5.0 |
|
|
|
— |
|
|
|
22.9 |
|
Operating profit |
|
|
4.0 |
|
|
|
16.5 |
|
|
|
0.7 |
|
|
|
5.0 |
|
|
|
— |
|
|
|
26.2 |
|
Other expense, net |
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
— |
|
|
|
0.8 |
|
Depreciation and
amortization |
|
|
12.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12.1 |
|
EBITDA |
|
$ |
15.8 |
|
|
$ |
16.5 |
|
|
$ |
0.7 |
|
|
$ |
4.5 |
|
|
$ |
— |
|
|
$ |
37.5 |
|
Net income |
|
$ |
5.5 |
|
|
$ |
16.5 |
|
|
$ |
0.7 |
|
|
$ |
4.5 |
|
|
$ |
(7.8 |
) |
|
$ |
19.4 |
|
Net income per share- basic
(c) |
|
$ |
0.04 |
|
|
$ |
0.11 |
|
|
$ |
— |
|
|
$ |
0.03 |
|
|
$ |
(0.05 |
) |
|
$ |
0.13 |
|
Net income per share- diluted
(c) |
|
$ |
0.04 |
|
|
$ |
0.11 |
|
|
$ |
— |
|
|
$ |
0.03 |
|
|
$ |
(0.05 |
) |
|
$ |
0.13 |
|
- Other includes intercompany foreign exchange gain,
restructuring consulting fees, and other non-recurring
charges.
- Income tax effects have been calculated based on the statutory
tax rates in effect in the U.S. and foreign jurisdictions during
the quarter.
- GAAP and Adjusted basic and diluted net income per share are
calculated based upon 145,593,019 and 151,444,901 weighted-average
shares of common stock, respectively.
|
|
Three Months Ended June 30, 2019 |
|
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income tax effects (b) |
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
48.7 |
|
|
$ |
0.8 |
|
|
$ |
0.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
47.3 |
|
Professional services and other |
|
|
34.2 |
|
|
|
0.5 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
33.5 |
|
Product development and management |
|
|
16.4 |
|
|
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15.7 |
|
Depreciation and amortization |
|
|
9.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.0 |
|
Total cost of revenue |
|
|
108.3 |
|
|
|
2.0 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
105.5 |
|
Sales and marketing |
|
|
34.9 |
|
|
|
1.3 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
33.2 |
|
General and administrative |
|
|
34.4 |
|
|
|
6.3 |
|
|
|
0.3 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
26.9 |
|
Operating profit |
|
|
18.7 |
|
|
|
9.6 |
|
|
|
1.5 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
30.7 |
|
Other expense, net |
|
|
1.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
1.3 |
|
Depreciation and
amortization |
|
|
14.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14.6 |
|
EBITDA |
|
$ |
31.8 |
|
|
$ |
9.6 |
|
|
$ |
1.5 |
|
|
$ |
1.1 |
|
|
$ |
— |
|
|
$ |
44.0 |
|
Net income |
|
$ |
6.3 |
|
|
$ |
9.6 |
|
|
$ |
1.5 |
|
|
$ |
1.1 |
|
|
$ |
(0.2 |
) |
|
$ |
18.3 |
|
Net income per share- basic
(c) |
|
$ |
0.04 |
|
|
$ |
0.07 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.13 |
|
Net income per share- diluted
(c) |
|
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.12 |
|
- Other includes intercompany foreign exchange loss,
restructuring consulting fees, and other non-recurring
charges.
- 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 June 30, 2019. Income tax effect in foreign
jurisdictions is calculated based on the statutory tax rates during
the quarter.
- GAAP and Adjusted basic and diluted net income per share are
calculated based upon 141,149,009 and 148,331,846 weighted-average
shares of common stock, respectively.
|
|
Six Months Ended June 30, 2020 |
|
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income tax effects (b) |
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
101.5 |
|
|
$ |
2.7 |
|
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
98.0 |
|
Professional services and other |
|
|
80.5 |
|
|
|
1.5 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
— |
|
|
|
78.1 |
|
Product development and management |
|
|
34.6 |
|
|
|
2.3 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
31.9 |
|
Depreciation and amortization |
|
|
19.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19.6 |
|
Total cost of revenue |
|
|
236.2 |
|
|
|
6.5 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
— |
|
|
|
227.6 |
|
Sales and marketing |
|
|
76.7 |
|
|
|
4.0 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
|
|
71.7 |
|
General and
administrative |
|
|
72.1 |
|
|
|
18.7 |
|
|
|
1.6 |
|
|
|
6.2 |
|
|
|
— |
|
|
|
45.6 |
|
Operating profit |
|
|
30.3 |
|
|
|
29.2 |
|
|
|
4.7 |
|
|
|
6.2 |
|
|
|
— |
|
|
|
70.4 |
|
Other expense, net |
|
|
2.9 |
|
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
|
|
— |
|
|
|
1.6 |
|
Depreciation and
amortization |
|
|
23.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23.9 |
|
EBITDA |
|
$ |
51.3 |
|
|
$ |
29.2 |
|
|
$ |
4.7 |
|
|
$ |
7.5 |
|
|
$ |
— |
|
|
$ |
92.7 |
|
Net income |
|
$ |
14.1 |
|
|
$ |
29.2 |
|
|
$ |
4.7 |
|
|
$ |
7.5 |
|
|
$ |
(14.0 |
) |
|
$ |
41.5 |
|
Net income per share- basic
(c) |
|
$ |
0.10 |
|
|
$ |
0.20 |
|
|
$ |
0.03 |
|
|
$ |
0.05 |
|
|
$ |
(0.10 |
) |
|
$ |
0.28 |
|
Net income per share- diluted
(c) |
|
$ |
0.09 |
|
|
$ |
0.19 |
|
|
$ |
0.03 |
|
|
$ |
0.05 |
|
|
$ |
(0.09 |
) |
|
$ |
0.27 |
|
- Other includes intercompany foreign exchange loss,
restructuring consulting fees, and other non-recurring
charges.
- Income tax effects have been calculated based on the statutory
tax rates in effect in the U.S. and foreign jurisdictions during
the period.
- GAAP and Adjusted basic and diluted net income per share are
calculated based upon 145,119,172 and 151,321,093 weighted-average
shares of common stock, respectively.
|
|
Six Months Ended June 30, 2019 |
|
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income tax effects (b) |
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
99.6 |
|
|
$ |
1.2 |
|
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
97.6 |
|
Professional services and other |
|
|
69.5 |
|
|
|
0.7 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
68.4 |
|
Product development and management |
|
|
31.6 |
|
|
|
1.2 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
30.3 |
|
Depreciation and amortization |
|
|
17.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17.7 |
|
Total cost of revenue |
|
|
218.4 |
|
|
|
3.1 |
|
|
|
1.3 |
|
|
|
— |
|
|
|
— |
|
|
|
214.0 |
|
Sales and marketing |
|
|
70.1 |
|
|
|
2.3 |
|
|
|
1.4 |
|
|
|
— |
|
|
|
— |
|
|
|
66.4 |
|
General and
administrative |
|
|
65.4 |
|
|
|
10.2 |
|
|
|
0.9 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
52.2 |
|
Operating profit |
|
|
46.1 |
|
|
|
15.6 |
|
|
|
3.6 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
67.4 |
|
Other expense, net |
|
|
3.1 |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
2.6 |
|
Depreciation and
amortization |
|
|
29.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29.0 |
|
EBITDA |
|
$ |
72.0 |
|
|
$ |
15.6 |
|
|
$ |
3.6 |
|
|
$ |
2.6 |
|
|
$ |
— |
|
|
$ |
93.8 |
|
Net income |
|
$ |
17.5 |
|
|
$ |
15.6 |
|
|
$ |
3.6 |
|
|
$ |
2.6 |
|
|
$ |
(0.6 |
) |
|
$ |
38.7 |
|
Net income per share- basic
(c) |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
— |
|
|
$ |
0.28 |
|
Net income per share- diluted
(c) |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
— |
|
|
$ |
0.27 |
|
- Other includes intercompany foreign exchange loss and
restructuring consulting fees.
- 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 June 30, 2019. Income tax effect in foreign
jurisdictions is calculated based on the statutory tax rates during
the quarter.
- GAAP and Adjusted basic and diluted net income per share are
calculated based upon 140,651,902 and 147,761,174 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
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