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 third
quarter ended September 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.”
“I am pleased to report that we delivered strong results in the
third quarter across key measures of the business, exceeding our
guidance for Dayforce recurring revenue, total revenue, and
Adjusted EBITDA,” said David Ossip, Chairman and Chief Executive
Officer of Ceridian. “We remain focused on our growth agenda, and
we believe we are well positioned to take advantage of changing
market dynamics to capture market share and to grow
profitability.”
The average U.S. dollar to Canadian dollar foreign exchange rate
was $1.33, with a daily range of $1.30 to $1.36, for the three
months ended September 30, 2020, compared to $1.32, with a
daily range of $1.30 to $1.33, for the three months ended
September 30, 2019. As of September 30, 2020, the
U.S. dollar to Canadian dollar foreign exchange rate was $1.33. 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
Third Quarter
2020
The financial highlights below are on a year-over-year basis,
unless otherwise stated.
Dayforce Revenue
- Dayforce recurring services revenue was $122.7 million for the
third quarter of 2020, an increase of 12.2%, both on a GAAP and a
constant currency basis.
- Excluding float revenue, Dayforce recurring services revenue
was $115.1 million for the third quarter of 2020, an increase of
17.9%, both on a GAAP and a constant currency basis.
- Dayforce revenue was million for the third quarter of
2020, an increase of , both on a GAAP and a constant currency
basis.
- Excluding float revenue, Dayforce revenue was $150.2 million
for the third quarter of 2020, an increase of 13.9%, both on a GAAP
and a constant currency basis.
Revenue
- Cloud revenue, which includes both Dayforce and Powerpay, was
million for the third quarter of 2020, an increase of 6.8%,
both on a GAAP and a constant currency basis.
- Excluding float revenue, Cloud revenue was $167.2 million for
the third quarter of 2020, an increase of 10.9%, or 11.0% on a
constant currency basis.
- Total revenue, which includes revenue from both our Cloud and
Bureau solutions, was million for the third quarter of 2020,
an increase of 1.0%, or 1.1% on a constant currency basis.
- Excluding float revenue, total revenue was $193.8 million for
the third quarter of 2020, an increase of 5.3%, or 5.4% on a
constant currency basis.
Gross Margin
- Total gross margin of 37.5% for the third quarter of 2020,
compared to 43.9%.
- Cloud recurring services gross margin improved to 70.4% for the
third quarter of 2020, compared to 70.2%, and excluding float
revenue, Cloud recurring service gross margin improved to 68.3% for
the third quarter of 2020, compared to 66.4%.
- Professional services and other gross margin declined to
(10.7)% for the third quarter of 2020, compared to (7.7)%.
Net (Loss) Income and Net (Loss) Income Per Share
- Net loss was $0.8 million for the third quarter of 2020,
compared to net income of $62.7 million. Net income for the
third quarter of 2019 included a one-time tax benefit of $65.8
million related to the release of our valuation allowance. Adjusted
net income was $17.7 million for the third quarter of 2020,
compared to $17.0 million.
- Diluted net loss per share was $(0.01) for the third quarter of
2020, compared to diluted net income per share of $0.42. Adjusted
diluted net income per share was $0.12 for the third quarter of
2020, compared to $0.11. Diluted weighted average common shares
outstanding were 147.1 million and 149.2 million for the third
quarter of 2020 and 2019, respectively.
Adjusted EBITDA
- Adjusted EBITDA declined to million for the third quarter
of 2020, compared to $46.4 million.
- Excluding float revenue, Adjusted EBITDA declined 19.6%.
Balance Sheet
- Cash and equivalents were $554.6 million as of
September 30, 2020, compared to $281.3 million as of
December 31, 2019.
- Total debt was $964.9 million as of September 30, 2020, an
increase of $287.8 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
- 4,704 Dayforce customers were live on the Dayforce platform as
of September 30, 2020, a net increase of 535 customers,
compared to 4,169 Dayforce customers as of September 30, 2019,
and a net increase of 101 customers, compared to 4,603 as of June
30, 2020.
- Excluding float revenue, the impact of lower employment levels
due to the COVID-19 pandemic, and on a constant currency basis,
Dayforce revenue per customer was $129,719 for the trailing twelve
months ended September 30, 2020, an increase of 13.1% from
$114,704 for the trailing twelve months ended September 30,
2019.
Business Outlook
Based on information available to us as of November 5, 2020, we
are issuing the following guidance for the fourth quarter of
2020:
- Dayforce recurring services revenue of $128 million to $129
million, or an increase of approximately 12% to 13% on both a GAAP
and constant currency basis. Excluding float revenue, Dayforce
recurring services revenue is expected to grow approximately 18% to
19% on both a GAAP and constant currency basis.
- Dayforce revenue of $167 million to $169 million, or an
increase of approximately 5% to 6% on both a GAAP and constant
currency basis. Excluding float revenue, Dayforce revenue is
expected to grow approximately 9% to 10% on both a GAAP and
constant currency basis.
- Cloud revenue of $189 million to $192 million, or an increase
of approximately 3% to 4% on both a GAAP and constant currency
basis. Excluding float revenue, Cloud revenue is expected to grow
approximately 6% to 8% on both a GAAP and constant currency
basis.
- Total revenue of $215 million to $219 million, or a decline of
approximately 3% to 1% on both a GAAP and constant currency basis.
Excluding float revenue, total revenue is expected to grow
approximately 1% to 3% on both a GAAP and constant currency
basis.
- Float revenue of approximately $6 million within Dayforce
revenue, $8 million within Cloud revenue, and $9 million within
total revenue.
- Adjusted EBITDA of $30 million to $34 million.
We expect Dayforce recurring services revenue growth, excluding
float revenue and on a constant currency basis, to be above 19% in
the first quarter of 2021 compared to the first quarter of 2020,
including an anticipated $1 million to $2 million of improvement
from increased customer employment levels.
Our fourth quarter 2020 guidance assumes an average U.S. dollar
to Canadian dollar foreign exchange rate of $1.32, compared to an
average rate of $1.32 in the fourth quarter of 2019. We have not
reconciled the Adjusted EBITDA range for the fourth 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.
Conference Call Details
Ceridian will release third quarter 2020 earnings after the
close of regular market trading on Thursday, November 5, 2020.
A live Zoom Video Webinar of the event can be accessed at 5:00
p.m. Eastern Time that same day through a direct registration link
at
https://ceridian.zoom.us/webinar/register/WN_ZdpRsaJSRoCfhHkkF3zlcQ.
Alternatively, the event can be accessed from the Events &
Presentations page on Ceridian’s Investor Relations website at
https://investors.ceridian.com. A replay and transcript will be
available after the conclusion of the live event on Ceridian’s
Investor Relations website.
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 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 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 fourth quarter 2020
and fiscal 2021, 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 with 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, and identify 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
|
|
September 30, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
(Dollars in millions,
except share data) |
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
554.6 |
|
|
$ |
281.3 |
|
Trade and other receivables, net |
|
|
91.4 |
|
|
|
80.4 |
|
Prepaid expenses and other current assets |
|
|
78.7 |
|
|
|
57.9 |
|
Total current assets before customer trust funds |
|
|
724.7 |
|
|
|
419.6 |
|
Customer trust funds |
|
|
2,646.6 |
|
|
|
3,204.1 |
|
Total current assets |
|
|
3,371.3 |
|
|
|
3,623.7 |
|
Right of use lease asset |
|
|
37.5 |
|
|
|
32.0 |
|
Property, plant, and equipment,
net |
|
|
132.2 |
|
|
|
128.3 |
|
Goodwill |
|
|
2,011.3 |
|
|
|
1,973.5 |
|
Other intangible assets, net |
|
|
197.3 |
|
|
|
177.9 |
|
Other assets |
|
|
168.4 |
|
|
|
150.3 |
|
Total assets |
|
$ |
5,918.0 |
|
|
$ |
6,085.7 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
7.7 |
|
|
$ |
10.8 |
|
Current portion of long-term lease liabilities |
|
|
10.3 |
|
|
|
8.8 |
|
Accounts payable |
|
|
26.6 |
|
|
|
43.2 |
|
Deferred revenue |
|
|
26.1 |
|
|
|
25.5 |
|
Employee compensation and benefits |
|
|
75.8 |
|
|
|
75.9 |
|
Other accrued expenses |
|
|
13.7 |
|
|
|
13.9 |
|
Total current liabilities before customer trust funds
obligations |
|
|
160.2 |
|
|
|
178.1 |
|
Customer trust funds obligations |
|
|
2,581.2 |
|
|
|
3,193.6 |
|
Total current liabilities |
|
|
2,741.4 |
|
|
|
3,371.7 |
|
Long-term debt, less current
portion |
|
|
957.2 |
|
|
|
666.3 |
|
Employee benefit plans |
|
|
108.2 |
|
|
|
117.2 |
|
Long-term lease liabilities, less
current portion |
|
|
34.1 |
|
|
|
30.1 |
|
Other liabilities |
|
|
40.8 |
|
|
|
18.1 |
|
Total liabilities |
|
|
3,881.7 |
|
|
|
4,203.4 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $0.01 par, 500,000,000 shares authorized, 147,647,117
and 144,386,618 shares issued and outstanding, respectively |
|
|
1.5 |
|
|
|
1.4 |
|
Additional paid in capital |
|
|
2,565.5 |
|
|
|
2,449.1 |
|
Accumulated deficit |
|
|
(216.5 |
) |
|
|
(229.8 |
) |
Accumulated other comprehensive loss |
|
|
(314.2 |
) |
|
|
(338.4 |
) |
Total stockholders’ equity |
|
|
2,036.3 |
|
|
|
1,882.3 |
|
Total liabilities and equity |
|
$ |
5,918.0 |
|
|
$ |
6,085.7 |
|
Ceridian HCM Holding Inc.
Condensed Consolidated
Statements of Operations
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
(Dollars in millions, except share and per share data,
Unaudited) |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
$ |
168.1 |
|
|
$ |
167.4 |
|
|
$ |
508.7 |
|
|
$ |
503.7 |
|
Professional services and other |
|
|
36.3 |
|
|
|
34.9 |
|
|
|
111.0 |
|
|
|
98.6 |
|
Total revenue |
|
|
204.4 |
|
|
|
202.3 |
|
|
|
619.7 |
|
|
|
602.3 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
|
54.3 |
|
|
|
49.4 |
|
|
|
155.8 |
|
|
|
149.0 |
|
Professional services and other |
|
|
40.2 |
|
|
|
37.6 |
|
|
|
120.7 |
|
|
|
107.1 |
|
Product development and management |
|
|
22.9 |
|
|
|
17.5 |
|
|
|
57.5 |
|
|
|
49.1 |
|
Depreciation and amortization |
|
|
10.3 |
|
|
|
9.0 |
|
|
|
29.9 |
|
|
|
26.7 |
|
Total cost of revenue |
|
|
127.7 |
|
|
|
113.5 |
|
|
|
363.9 |
|
|
|
331.9 |
|
Gross profit |
|
|
76.7 |
|
|
|
88.8 |
|
|
|
255.8 |
|
|
|
270.4 |
|
Selling, general, and
administrative |
|
|
77.3 |
|
|
|
82.3 |
|
|
|
226.1 |
|
|
|
217.8 |
|
Operating (loss) profit |
|
|
(0.6 |
) |
|
|
6.5 |
|
|
|
29.7 |
|
|
|
52.6 |
|
Interest expense, net |
|
|
5.9 |
|
|
|
7.8 |
|
|
|
19.4 |
|
|
|
25.2 |
|
Other (income) expense, net |
|
|
(0.2 |
) |
|
|
1.6 |
|
|
|
2.7 |
|
|
|
4.7 |
|
(Loss) income before income
taxes |
|
|
(6.3 |
) |
|
|
(2.9 |
) |
|
|
7.6 |
|
|
|
22.7 |
|
Income tax benefit |
|
|
(5.5 |
) |
|
|
(65.6 |
) |
|
|
(5.7 |
) |
|
|
(57.5 |
) |
Net (loss) income |
|
$ |
(0.8 |
) |
|
$ |
62.7 |
|
|
$ |
13.3 |
|
|
$ |
80.2 |
|
Net (loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.01 |
) |
|
$ |
0.44 |
|
|
$ |
0.09 |
|
|
$ |
0.57 |
|
Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.42 |
|
|
$ |
0.09 |
|
|
$ |
0.54 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
147,141,403 |
|
|
|
142,780,819 |
|
|
|
145,798,169 |
|
|
|
141,369,339 |
|
Diluted |
|
|
147,141,403 |
|
|
|
149,153,227 |
|
|
|
152,105,719 |
|
|
|
148,279,943 |
|
Ceridian HCM Holding Inc.
Condensed Consolidated
Statements of Cash Flows
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
|
(Dollars in millions, Unaudited) |
|
Net income |
|
$ |
13.3 |
|
|
$ |
80.2 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Deferred income tax benefit |
|
|
— |
|
|
|
(75.9 |
) |
Depreciation and amortization |
|
|
36.9 |
|
|
|
43.9 |
|
Amortization of debt issuance costs and debt discount |
|
|
0.9 |
|
|
|
0.8 |
|
Net periodic pension and postretirement cost |
|
|
2.5 |
|
|
|
3.9 |
|
Non-cash share-based compensation |
|
|
46.3 |
|
|
|
26.0 |
|
Other |
|
|
0.6 |
|
|
|
1.8 |
|
Changes in operating assets and liabilities excluding effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
(2.5 |
) |
|
|
(10.6 |
) |
Prepaid expenses and other current assets |
|
|
(8.0 |
) |
|
|
(10.1 |
) |
Accounts payable and other accrued expenses |
|
|
(12.0 |
) |
|
|
(2.5 |
) |
Deferred revenue |
|
|
0.6 |
|
|
|
2.6 |
|
Employee compensation and benefits |
|
|
(2.8 |
) |
|
|
(18.5 |
) |
Accrued interest |
|
|
0.3 |
|
|
|
— |
|
Accrued taxes |
|
|
(8.7 |
) |
|
|
(10.4 |
) |
Other assets and liabilities |
|
|
(20.1 |
) |
|
|
(6.6 |
) |
Net cash provided by operating
activities |
|
|
47.3 |
|
|
|
24.6 |
|
Cash Flows from Investing
Activities |
|
|
|
|
|
|
|
|
Purchase of customer trust funds
marketable securities |
|
|
(25.3 |
) |
|
|
(335.1 |
) |
Proceeds from sale and maturity
of customer trust funds marketable securities |
|
|
304.1 |
|
|
|
278.1 |
|
Expenditures for property, plant,
and equipment |
|
|
(13.6 |
) |
|
|
(10.8 |
) |
Expenditures for software and
technology |
|
|
(30.6 |
) |
|
|
(27.6 |
) |
Acquisition costs, net of cash
and restricted cash acquired |
|
|
(58.3 |
) |
|
|
(29.4 |
) |
Net cash provided by (used in)
investing activities |
|
|
176.3 |
|
|
|
(124.8 |
) |
Cash Flows from Financing
Activities |
|
|
|
|
|
|
|
|
Decrease in customer trust funds
obligations, net |
|
|
(601.4 |
) |
|
|
(54.5 |
) |
Proceeds from issuance of common
stock under share-based compensation plans |
|
|
70.2 |
|
|
|
76.7 |
|
Repayment of long-term debt
obligations |
|
|
(7.9 |
) |
|
|
(5.1 |
) |
Proceeds from revolving credit
facility |
|
|
295.0 |
|
|
|
— |
|
Net cash (used in) provided by
financing activities |
|
|
(244.1 |
) |
|
|
17.1 |
|
Effect of exchange rate
changes on cash, restricted cash, and equivalents |
|
|
(7.9 |
) |
|
|
7.2 |
|
Net decrease in cash, restricted
cash, and equivalents |
|
|
(28.4 |
) |
|
|
(75.9 |
) |
Cash, restricted cash, and
equivalents at beginning of period |
|
|
1,658.6 |
|
|
|
1,106.3 |
|
Cash, restricted cash, and
equivalents at end of period |
|
$ |
1,630.2 |
|
|
$ |
1,030.4 |
|
Reconciliation of cash,
restricted cash, and equivalents to the condensed
consolidated balance sheets |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
554.6 |
|
|
$ |
270.9 |
|
Restricted cash and equivalents
included in customer trust funds |
|
|
1,075.6 |
|
|
|
759.5 |
|
Total cash, restricted cash, and
equivalents |
|
$ |
1,630.2 |
|
|
$ |
1,030.4 |
|
Ceridian HCM Holding Inc.
Revenue Financial
Measures
(Unaudited)
|
|
Three Months Ended September 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 |
|
$ |
115.1 |
|
|
$ |
97.6 |
|
|
|
17.9 |
% |
|
|
(— |
)% |
|
|
17.9 |
% |
Dayforce float |
|
|
7.6 |
|
|
|
11.8 |
|
|
|
(35.6 |
)% |
|
|
(— |
)% |
|
|
(35.6 |
)% |
Total Dayforce recurring services |
|
|
122.7 |
|
|
|
109.4 |
|
|
|
12.2 |
% |
|
|
(— |
)% |
|
|
12.2 |
% |
Powerpay recurring services, excluding float |
|
|
16.7 |
|
|
|
18.6 |
|
|
|
(10.2 |
)% |
|
|
(0.5 |
)% |
|
|
(9.7 |
)% |
Powerpay float |
|
|
1.9 |
|
|
|
3.0 |
|
|
|
(36.7 |
)% |
|
|
(— |
)% |
|
|
(36.7 |
)% |
Total Powerpay recurring services |
|
|
18.6 |
|
|
|
21.6 |
|
|
|
(13.9 |
)% |
|
|
(0.5 |
)% |
|
|
(13.4 |
)% |
Total Cloud recurring services |
|
|
141.3 |
|
|
|
131.0 |
|
|
|
7.9 |
% |
|
|
(— |
)% |
|
|
7.9 |
% |
Dayforce professional services and other |
|
|
35.1 |
|
|
|
34.3 |
|
|
|
2.3 |
% |
|
|
(— |
)% |
|
|
2.3 |
% |
Powerpay professional services and other |
|
|
0.3 |
|
|
|
0.2 |
|
|
|
50.0 |
% |
|
|
(— |
)% |
|
|
50.0 |
% |
Total Cloud professional services and other |
|
|
35.4 |
|
|
|
34.5 |
|
|
|
2.6 |
% |
|
|
(— |
)% |
|
|
2.6 |
% |
Total Cloud revenue |
|
|
176.7 |
|
|
|
165.5 |
|
|
|
6.8 |
% |
|
|
(— |
)% |
|
|
6.8 |
% |
Bureau recurring services, excluding float |
|
|
25.7 |
|
|
|
32.9 |
|
|
|
(21.9 |
)% |
|
|
(— |
)% |
|
|
(21.9 |
)% |
Bureau float |
|
|
1.1 |
|
|
|
3.5 |
|
|
|
(68.6 |
)% |
|
|
(— |
)% |
|
|
(68.6 |
)% |
Total Bureau recurring services |
|
|
26.8 |
|
|
|
36.4 |
|
|
|
(26.4 |
)% |
|
|
(— |
)% |
|
|
(26.4 |
)% |
Bureau professional services and other |
|
|
0.9 |
|
|
|
0.4 |
|
|
|
125.0 |
% |
|
|
(— |
)% |
|
|
125.0 |
% |
Total Bureau revenue |
|
|
27.7 |
|
|
|
36.8 |
|
|
|
(24.7 |
)% |
|
|
(— |
)% |
|
|
(24.7 |
)% |
Total revenue |
|
$ |
204.4 |
|
|
$ |
202.3 |
|
|
|
1.0 |
% |
|
|
(0.1 |
)% |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce |
|
$ |
157.8 |
|
|
$ |
143.7 |
|
|
|
9.8 |
% |
|
|
(— |
)% |
|
|
9.8 |
% |
Powerpay |
|
|
18.9 |
|
|
|
21.8 |
|
|
|
(13.3 |
)% |
|
|
(0.5 |
)% |
|
|
(12.8 |
)% |
Total Cloud revenue |
|
$ |
176.7 |
|
|
$ |
165.5 |
|
|
|
6.8 |
% |
|
|
(— |
)% |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce, excluding float |
|
$ |
150.2 |
|
|
$ |
131.9 |
|
|
|
13.9 |
% |
|
|
(— |
)% |
|
|
13.9 |
% |
Powerpay, excluding float |
|
|
17.0 |
|
|
|
18.8 |
|
|
|
(9.6 |
)% |
|
|
(0.6 |
)% |
|
|
(9.0 |
)% |
Cloud revenue, excluding
float |
|
|
167.2 |
|
|
|
150.7 |
|
|
|
10.9 |
% |
|
|
(0.1 |
)% |
|
|
11.0 |
% |
Cloud float |
|
|
9.5 |
|
|
|
14.8 |
|
|
|
(35.8 |
)% |
|
|
(— |
)% |
|
|
(35.8 |
)% |
Total Cloud revenue |
|
$ |
176.7 |
|
|
$ |
165.5 |
|
|
|
6.8 |
% |
|
|
(— |
)% |
|
|
6.8 |
% |
(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.
Revenue Financial Measures
(Unaudited)
|
|
Nine Months Ended September 30, |
|
|
Percentagechange
inrevenue
asreported |
|
|
Impact ofchanges
inforeigncurrency
(a) |
|
|
Percentagechange
inrevenue
onconstantcurrencybasis (a) |
|
|
|
2020 |
|
|
2019 |
|
|
2020 vs. 2019 |
|
|
|
|
|
|
2020 vs. 2019 |
|
|
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce recurring services, excluding float |
|
$ |
339.3 |
|
|
$ |
274.6 |
|
|
|
23.6 |
% |
|
|
(0.3 |
)% |
|
|
23.9 |
% |
Dayforce float |
|
|
30.0 |
|
|
|
40.1 |
|
|
|
(25.2 |
)% |
|
|
(0.3 |
)% |
|
|
(24.9 |
)% |
Total Dayforce recurring services |
|
|
369.3 |
|
|
|
314.7 |
|
|
|
17.3 |
% |
|
|
(0.4 |
)% |
|
|
17.7 |
% |
Powerpay recurring services, excluding float |
|
|
50.1 |
|
|
|
54.9 |
|
|
|
(8.7 |
)% |
|
|
(0.9 |
)% |
|
|
(7.8 |
)% |
Powerpay float |
|
|
6.5 |
|
|
|
9.1 |
|
|
|
(28.6 |
)% |
|
|
(1.1 |
)% |
|
|
(27.5 |
)% |
Total Powerpay recurring services |
|
|
56.6 |
|
|
|
64.0 |
|
|
|
(11.6 |
)% |
|
|
(1.0 |
)% |
|
|
(10.6 |
)% |
Total Cloud recurring services |
|
|
425.9 |
|
|
|
378.7 |
|
|
|
12.5 |
% |
|
|
(0.4 |
)% |
|
|
12.9 |
% |
Dayforce professional services and other |
|
|
108.8 |
|
|
|
96.3 |
|
|
|
13.0 |
% |
|
|
(0.4 |
)% |
|
|
13.4 |
% |
Powerpay professional services and other |
|
|
0.8 |
|
|
|
0.8 |
|
|
|
(— |
)% |
|
|
(— |
)% |
|
|
(— |
)% |
Total Cloud professional services and other |
|
|
109.6 |
|
|
|
97.1 |
|
|
|
12.9 |
% |
|
|
(0.4 |
)% |
|
|
13.3 |
% |
Total Cloud revenue |
|
|
535.5 |
|
|
|
475.8 |
|
|
|
12.5 |
% |
|
|
(0.5 |
)% |
|
|
13.0 |
% |
Bureau recurring services, excluding float |
|
|
77.6 |
|
|
|
111.3 |
|
|
|
(30.3 |
)% |
|
|
(0.3 |
)% |
|
|
(30.0 |
)% |
Bureau float |
|
|
5.2 |
|
|
|
13.7 |
|
|
|
(62.0 |
)% |
|
|
(0.7 |
)% |
|
|
(61.3 |
)% |
Total Bureau recurring services |
|
|
82.8 |
|
|
|
125.0 |
|
|
|
(33.8 |
)% |
|
|
(0.4 |
)% |
|
|
(33.4 |
)% |
Bureau professional services and other |
|
|
1.4 |
|
|
|
1.5 |
|
|
|
(6.7 |
)% |
|
|
(— |
)% |
|
|
(6.7 |
)% |
Total Bureau revenue |
|
|
84.2 |
|
|
|
126.5 |
|
|
|
(33.4 |
)% |
|
|
(0.3 |
)% |
|
|
(33.1 |
)% |
Total revenue |
|
$ |
619.7 |
|
|
$ |
602.3 |
|
|
|
2.9 |
% |
|
|
(0.4 |
)% |
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce |
|
$ |
478.1 |
|
|
$ |
411.0 |
|
|
|
16.3 |
% |
|
|
(0.4 |
)% |
|
|
16.7 |
% |
Powerpay |
|
|
57.4 |
|
|
|
64.8 |
|
|
|
(11.4 |
)% |
|
|
(0.9 |
)% |
|
|
(10.5 |
)% |
Total Cloud revenue |
|
$ |
535.5 |
|
|
$ |
475.8 |
|
|
|
12.5 |
% |
|
|
(0.5 |
)% |
|
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce, excluding float |
|
$ |
448.1 |
|
|
$ |
370.9 |
|
|
|
20.8 |
% |
|
|
(0.4 |
)% |
|
|
21.2 |
% |
Powerpay, excluding float |
|
|
50.9 |
|
|
|
55.7 |
|
|
|
(8.6 |
)% |
|
|
(0.9 |
)% |
|
|
(7.7 |
)% |
Cloud revenue, excluding
float |
|
|
499.0 |
|
|
|
426.6 |
|
|
|
17.0 |
% |
|
|
(0.4 |
)% |
|
|
17.4 |
% |
Cloud float |
|
|
36.5 |
|
|
|
49.2 |
|
|
|
(25.8 |
)% |
|
|
(0.4 |
)% |
|
|
(25.4 |
)% |
Total Cloud revenue |
|
$ |
535.5 |
|
|
$ |
475.8 |
|
|
|
12.5 |
% |
|
|
(0.5 |
)% |
|
|
13.0 |
% |
(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 September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
(Dollars in millions) |
|
Net (loss) income |
|
$ |
(0.8 |
) |
|
$ |
62.7 |
|
|
$ |
13.3 |
|
|
$ |
80.2 |
|
Interest expense, net |
|
|
5.9 |
|
|
|
7.8 |
|
|
|
19.4 |
|
|
|
25.2 |
|
Income tax benefit |
|
|
(5.5 |
) |
|
|
(65.6 |
) |
|
|
(5.7 |
) |
|
|
(57.5 |
) |
Depreciation and amortization |
|
|
13.0 |
|
|
|
14.9 |
|
|
|
36.9 |
|
|
|
43.9 |
|
EBITDA (a) |
|
|
12.6 |
|
|
|
19.8 |
|
|
|
63.9 |
|
|
|
91.8 |
|
Intercompany foreign exchange (gain) loss |
|
|
(1.2 |
) |
|
|
0.3 |
|
|
|
0.1 |
|
|
|
0.8 |
|
Share-based compensation (b) |
|
|
19.3 |
|
|
|
11.4 |
|
|
|
48.5 |
|
|
|
27.0 |
|
Severance charges (c) |
|
|
2.2 |
|
|
|
0.8 |
|
|
|
6.9 |
|
|
|
4.4 |
|
Restructuring consulting fees (d) |
|
|
0.3 |
|
|
|
1.5 |
|
|
|
6.9 |
|
|
|
3.6 |
|
Other non-recurring charges (e) |
|
|
— |
|
|
|
12.6 |
|
|
|
(0.4 |
) |
|
|
12.6 |
|
Adjusted EBITDA |
|
$ |
33.2 |
|
|
$ |
46.4 |
|
|
$ |
125.9 |
|
|
$ |
140.2 |
|
Adjusted EBITDA margin |
|
|
16.2 |
% |
|
|
22.9 |
% |
|
|
20.3 |
% |
|
|
23.3 |
% |
(a) We define EBITDA as net income or loss 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 (recovery) loss on unrecovered duplicate payments
associated with an isolated service incident.
|
|
Three Months Ended September 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 |
|
$ |
54.3 |
|
|
$ |
1.8 |
|
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
51.7 |
|
Professional services and other |
|
|
40.2 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39.2 |
|
Product development and management |
|
|
22.9 |
|
|
|
2.9 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
19.2 |
|
Depreciation and amortization |
|
|
10.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10.3 |
|
Total cost of revenue |
|
|
127.7 |
|
|
|
5.7 |
|
|
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
120.4 |
|
Sales and marketing |
|
|
39.5 |
|
|
|
2.0 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
37.1 |
|
General and administrative |
|
|
37.8 |
|
|
|
11.6 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
25.7 |
|
Operating (loss) profit |
|
|
(0.6 |
) |
|
|
19.3 |
|
|
|
2.2 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
21.2 |
|
Other expense, net |
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1.2 |
) |
|
|
— |
|
|
|
1.0 |
|
Depreciation and
amortization |
|
|
13.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13.0 |
|
EBITDA |
|
$ |
12.6 |
|
|
$ |
19.3 |
|
|
$ |
2.2 |
|
|
$ |
(0.9 |
) |
|
$ |
— |
|
|
$ |
33.2 |
|
Net (loss) income |
|
$ |
(0.8 |
) |
|
$ |
19.3 |
|
|
$ |
2.2 |
|
|
$ |
(0.9 |
) |
|
$ |
(2.1 |
) |
|
$ |
17.7 |
|
Net (loss) income per share-
basic (c) |
|
$ |
(0.01 |
) |
|
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
0.12 |
|
Net (loss) income per share-
diluted (c) |
|
$ |
(0.01 |
) |
|
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
0.12 |
|
(a) Other includes intercompany foreign exchange gain and
restructuring consulting fees.(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
147,141,403 weighted-average shares of common stock.
|
|
Three Months Ended September 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 |
|
$ |
49.4 |
|
|
$ |
0.9 |
|
|
$ |
0.3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
48.2 |
|
Professional services and other |
|
|
37.6 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37.1 |
|
Product development and management |
|
|
17.5 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16.5 |
|
Depreciation and amortization |
|
|
9.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.0 |
|
Total cost of revenue |
|
|
113.5 |
|
|
|
2.4 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
110.8 |
|
Sales and marketing |
|
|
35.5 |
|
|
|
1.3 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
33.7 |
|
General and administrative |
|
|
46.8 |
|
|
|
7.7 |
|
|
|
— |
|
|
|
14.1 |
|
|
|
— |
|
|
|
25.0 |
|
Operating profit |
|
|
6.5 |
|
|
|
11.4 |
|
|
|
0.8 |
|
|
|
14.1 |
|
|
|
— |
|
|
|
32.8 |
|
Other expense, net |
|
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
1.3 |
|
Depreciation and
amortization |
|
|
14.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14.9 |
|
EBITDA |
|
$ |
19.8 |
|
|
$ |
11.4 |
|
|
$ |
0.8 |
|
|
$ |
14.4 |
|
|
$ |
— |
|
|
$ |
46.4 |
|
Net income |
|
$ |
62.7 |
|
|
$ |
11.4 |
|
|
$ |
0.8 |
|
|
$ |
(51.4 |
) |
|
$ |
(6.5 |
) |
|
$ |
17.0 |
|
Net income per share- basic
(c) |
|
$ |
0.44 |
|
|
$ |
0.08 |
|
|
$ |
0.01 |
|
|
$ |
(0.37 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.12 |
|
Net income per share- diluted
(c) |
|
$ |
0.42 |
|
|
$ |
0.08 |
|
|
$ |
0.01 |
|
|
$ |
(0.36 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.11 |
|
(a) Other includes intercompany foreign exchange loss,
restructuring consulting fees, loss on unrecovered duplicate
payments, and a tax benefit of $65.8 million related to the release
of our valuation allowance.(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
142,780,819 and 149,153,227 weighted-average shares of common
stock, respectively.
|
|
Nine Months Ended September 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 |
|
$ |
155.8 |
|
|
$ |
4.5 |
|
|
$ |
1.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
149.7 |
|
Professional services and other |
|
|
120.7 |
|
|
|
2.5 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
— |
|
|
|
117.3 |
|
Product development and management |
|
|
57.5 |
|
|
|
5.2 |
|
|
|
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
51.1 |
|
Depreciation and amortization |
|
|
29.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29.9 |
|
Total cost of revenue |
|
|
363.9 |
|
|
|
12.2 |
|
|
|
3.7 |
|
|
|
— |
|
|
|
— |
|
|
|
348.0 |
|
Sales and marketing |
|
|
116.2 |
|
|
|
6.0 |
|
|
|
1.4 |
|
|
|
— |
|
|
|
— |
|
|
|
108.8 |
|
General and
administrative |
|
|
109.9 |
|
|
|
30.3 |
|
|
|
1.8 |
|
|
|
6.5 |
|
|
|
— |
|
|
|
71.3 |
|
Operating profit |
|
|
29.7 |
|
|
|
48.5 |
|
|
|
6.9 |
|
|
|
6.5 |
|
|
|
— |
|
|
|
91.6 |
|
Other expense, net |
|
|
2.7 |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
2.6 |
|
Depreciation and
amortization |
|
|
36.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36.9 |
|
EBITDA |
|
$ |
63.9 |
|
|
$ |
48.5 |
|
|
$ |
6.9 |
|
|
$ |
6.6 |
|
|
$ |
— |
|
|
$ |
125.9 |
|
Net income |
|
$ |
13.3 |
|
|
$ |
48.5 |
|
|
$ |
6.9 |
|
|
$ |
6.6 |
|
|
$ |
(16.2 |
) |
|
$ |
59.1 |
|
Net income per share- basic
(c) |
|
$ |
0.09 |
|
|
$ |
0.33 |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
(0.11 |
) |
|
$ |
0.41 |
|
Net income per share- diluted
(c) |
|
$ |
0.09 |
|
|
$ |
0.32 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
(0.11 |
) |
|
$ |
0.39 |
|
(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
period. (c) GAAP and Adjusted basic and diluted net income per
share are calculated based upon 145,798,169 and 152,105,719
weighted-average shares of common stock, respectively.
|
|
Nine Months Ended September 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 |
|
$ |
149.0 |
|
|
$ |
2.1 |
|
|
$ |
1.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
145.8 |
|
Professional services and other |
|
|
107.1 |
|
|
|
1.2 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
105.5 |
|
Product development and management |
|
|
49.1 |
|
|
|
2.2 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
46.8 |
|
Depreciation and amortization |
|
|
26.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26.7 |
|
Total cost of revenue |
|
|
331.9 |
|
|
|
5.5 |
|
|
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
324.8 |
|
Sales and marketing |
|
|
105.6 |
|
|
|
3.6 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
100.1 |
|
General and
administrative |
|
|
112.2 |
|
|
|
17.9 |
|
|
|
0.9 |
|
|
|
16.2 |
|
|
|
— |
|
|
|
77.2 |
|
Operating profit |
|
|
52.6 |
|
|
|
27.0 |
|
|
|
4.4 |
|
|
|
16.2 |
|
|
|
— |
|
|
|
100.2 |
|
Other expense, net |
|
|
4.7 |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
3.9 |
|
Depreciation and
amortization |
|
|
43.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
43.9 |
|
EBITDA |
|
$ |
91.8 |
|
|
$ |
27.0 |
|
|
$ |
4.4 |
|
|
$ |
17.0 |
|
|
$ |
— |
|
|
$ |
140.2 |
|
Net income |
|
$ |
80.2 |
|
|
$ |
27.0 |
|
|
$ |
4.4 |
|
|
$ |
(48.8 |
) |
|
$ |
(7.1 |
) |
|
$ |
55.7 |
|
Net income per share- basic
(c) |
|
$ |
0.57 |
|
|
$ |
0.19 |
|
|
$ |
0.03 |
|
|
$ |
(0.35 |
) |
|
$ |
(0.05 |
) |
|
$ |
0.39 |
|
Net income per share- diluted
(c) |
|
$ |
0.54 |
|
|
$ |
0.19 |
|
|
$ |
0.03 |
|
|
$ |
(0.33 |
) |
|
$ |
(0.05 |
) |
|
$ |
0.38 |
|
(a) Other includes intercompany foreign exchange loss,
restructuring consulting fees, loss on unrecovered duplicate
payments, and a tax benefit of $65.8 million related to the release
of our valuation allowance.(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. Prior to June 30,
2019, we did not apply an income tax effect to expenses incurred in
the U.S. due to a full valuation allowance against our deferred tax
assets.(c) GAAP and Adjusted basic and diluted net income per share
are calculated based upon 141,369,339 and 148,279,943
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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