Paychex (PAYX) FY2018 results: revenue $3.4 billion, up 7.3% on the year
Paychex Inc. (PAYX) reported revenue of $3.4 billion for fiscal 2018, the year ended 31 May 2018, up 7.3% on the year before. Net income was $994 million, up 20.3%, and diluted earnings per share $2.75. The figures are the company's own, from the 10-K it filed with the SEC on 20 July 2018.
Revenue
$3.4 billion
+7.3% on the year
FY2011FY2018
Operating margin
38.2%
39.8% a year earlier
FY2011FY2018
Net income
$994 million
+20.3% on the year
FY2011FY2018
Diluted EPS
$2.75
+20.6% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
3,381
3,151
2,952
+7.3%
Cost of revenue
1,018
n/a
n/a
Gross profit
2,363
n/a
n/a
Gross margin
69.9%
n/a
n/a
Selling, general and administrative
1,068
980
948
+9.0%
Operating income
1,292
1,254
1,147
+3.0%
Operating margin
38.2%
39.8%
38.8%
Interest expense
3.9
2.5
1.1
+56.0%
Pre-tax income
1,300
1,259
1,151
+3.3%
Income tax
306
433
394
-29.3%
Effective tax rate
23.5%
34.4%
34.3%
Net income
994
826
757
+20.3%
Net margin
29.4%
26.2%
25.6%
Diluted EPS
$2.75
$2.28
$2.09
+20.6%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
1,276
960
1,018
+32.9%
Capital expenditure
154
94.3
97.7
+63.3%
Free cash flow
1,122
866
920
+29.6%
Free cash flow margin
33.2%
27.5%
31.2%
Cash from investing
998
-662
-63.1
Cash from financing
-424
-483
-994
Depreciation and amortisation
138
127
115
+8.7%
Share-based compensation
44.6
35.4
34.6
+26.0%
Buybacks
143
166
108
-13.9%
Dividends paid
740
662
606
+11.7%
Dividend per share
$2.06
$1.84
$1.68
+12.0%
Diluted shares, weighted
362m
363m
362m
-0.3%
Shares outstanding at period end
359m
359m
360m
-0.1%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
2,357
2,227
1,912
+5.8%
Debt
0.0
0.0
0.0
Other liabilities
5,559
4,606
4,529
+20.7%
Total liabilities and equity
7,915
6,834
6,441
+15.8%
Fixed assets
394
337
353
+16.7%
Goodwill
814
657
657
+23.9%
Intangible assets
141
57.6
69.5
+145.5%
Investments
362
593
662
-39.0%
Cash and equivalents
358
185
132
+94.0%
Other assets
5,847
5,004
4,568
+16.8%
Total assets
7,915
6,834
6,441
+15.8%
10-K for the year ended 31 May 2018, filed 20 July 2018: the filing.