Paychex Inc. Files 10-Q for Period Ending February 29, 2024

TL;DR

<b>Paychex Inc. (PAYX) has filed its Q3 2024 10-Q report, detailing financial positions and fair value measurements.</b>

AI Summary

PAYCHEX INC (PAYX) filed a Quarterly Report (10-Q) with the SEC on April 2, 2024. Paychex Inc. filed its 10-Q report for the period ending February 29, 2024. The filing covers the third quarter of fiscal year 2024. Key financial statement items like Retained Earnings, Accumulated Other Comprehensive Income, and Common Stock are reported as of various dates. The company's fiscal year ends on May 31st. Fair value measurements for various financial instruments, including Municipal Bonds and Asset-Backed Securities, are detailed.

Why It Matters

For investors and stakeholders tracking PAYCHEX INC, this filing contains several important signals. This 10-Q provides investors with the latest financial performance and position of Paychex Inc. for the third quarter of fiscal year 2024, enabling informed investment decisions. The detailed fair value measurements offer insights into the company's management of its investment portfolio and associated risks.

Risk Assessment

Risk Level: — PAYCHEX INC shows moderate risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate indicators of significant new risks or operational changes.

Analyst Insight

Monitor future filings for revenue growth and net income trends to assess the company's ongoing performance in the payroll and HR services market.

Key Numbers

• 2024-02-29 — Reporting Period End Date (10-Q filing)
• 2024-04-02 — Filing Date (10-Q filing)
• 0531 — Fiscal Year End (Company data)

Key Players & Entities

• PAYCHEX INC (company) — Filer name
• PAYX (company) — Ticker symbol

FAQ

Industry Context

Paychex Inc. operates in the human capital management sector, providing payroll, HR, and benefits outsourcing solutions to businesses.

Regulatory Implications

As a publicly traded company, Paychex Inc. is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) detailing its financial status.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and footnotes.
2. Analyze revenue and expense trends in subsequent filings to understand business performance.
3. Compare Paychex's financial metrics against industry peers.

Key Dates

• 2024-02-29: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-02: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive update on the company's financial performance and position during the quarter.)

Fair Value Measurements

The process of determining the market value of assets and liabilities. (Indicates how Paychex values its financial instruments, which can impact reported earnings and financial health.)

Year-Over-Year Comparison

This filing represents the quarterly update for the period ending February 29, 2024, following previous filings such as the 10-K for the fiscal year ending May 31, 2023.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value PAYX Nasdaq Global Select

Filing Documents

• payx-20240229.htm (10-Q) — 2860KB
• payx-ex31_1.htm (EX-31.1) — 18KB
• payx-ex31_2.htm (EX-31.2) — 17KB
• payx-ex32_1.htm (EX-32.1) — 9KB
• payx-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-24-040129.txt (&nbsp;) — 9772KB
• payx-20240229.xsd (EX-101.SCH) — 891KB
• payx-20240229_htm.xml (XML) — 2179KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Consolidated Statements of Income and Comprehensive Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Stockholders' Equity 3 Consolidated Statements of Cash Flows 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

OTHER INFORMATION

PART II. OTHER INFORMATION 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 5. Other Information 30 Item 6. Exhibits 30

Signatures

Signatures 31 Table of Contents

FI NAN CIAL INFORMATION

PART I. FI NAN CIAL INFORMATION

Financial Statements

Item 1. Financial Statements PAYCHEX, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) In millions, except per share amounts For the three months ended For the nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Revenue: Management Solutions $ 1,049.9 $ 1,024.5 $ 2,936.1 $ 2,825.3 PEO and Insurance Solutions 345.5 321.2 939.0 877.3 Total service revenue 1,395.4 1,345.7 3,875.1 3,702.6 Interest on funds held for clients 43.9 35.3 108.1 74.9 Total revenue 1,439.3 1,381.0 3,983.2 3,777.5 Expenses: Cost of service revenue 379.8 372.9 1,104.1 1,083.2 Selling, general and administrative expenses 409.7 396.2 1,186.8 1,114.5 Total expenses 789.5 769.1 2,290.9 2,197.7 Operating income 649.8 611.9 1,692.3 1,579.8 Other income, net 9.4 5.5 33.9 4.8 Income before income taxes 659.2 617.4 1,726.2 1,584.6 Income taxes 160.6 150.0 415.7 377.7 Net income $ 498.6 $ 467.4 $ 1,310.5 $ 1,206.9 Other comprehensive income/(loss), net of tax 22.0 ( 5.9 ) 14.7 ( 70.3 ) Comprehensive income $ 520.6 $ 461.5 $ 1,325.2 $ 1,136.6 Basic earnings per share $ 1.39 $ 1.30 $ 3.64 $ 3.35 Diluted earnings per share $ 1.38 $ 1.29 $ 3.62 $ 3.33 Weighted-average common shares outstanding 359.9 360.5 360.4 360.3 Weighted-average common shares outstanding, assuming dilution 361.7 362.3 362.2 362.3 See Notes to Consolidated Financial Statements. 1 Table of Contents PA YCHEX, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) In millions, except per share amounts February 29, May 31, 2024 2023 Assets Cash and cash equivalents $ 1,693.6 $ 1,222.0 Restricted cash 41.0 49.8 Corporate investments 36.6 373.4 Interest receivable 22.8 24.4 Account

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) February 29, 2024 Note A: Description of Business, Basis of Presentation, and Significant Accounting Policies Description of business: Paychex, Inc. and its wholly owned subsidiaries (collectively, the "Company" or "Paychex") is a leading provider of integrated human capital management ("HCM") solutions for human resources ("HR"), payroll, benefits, and insurance for small- to medium-sized businesses in the United States ("U.S.") and parts of Europe. The Company also has operations in India. Paychex, a Delaware corporation formed in 1979, reports as one segment. Basis of presentation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to the Quarterly Report on Form 10-Q ("Form 10-Q") and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statement presentation. The consolidated financial statements include the consolidated accounts of the Company with all intercompany transactions eliminated. Certain disclosures are reported as zero balances due to rounding. In the opinion of management, the information furnished herein reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair statement of the results for the interim period. These consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related Notes to Consolidated Financial Statements presented in the Company's Annual Report on Form 10-K ("Form 10-K") for the fiscal year ended May 31, 2023 ("fiscal 2023"). Operating results and cash flows for the nine months ended February 29, 2024 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending May 31, 2024

View Full Filing

View this 10-Q filing on SEC EDGAR