Paychex Inc. Files Q1 2024 10-Q

TL;DR

Paychex Q1 2024 10-Q is in. Financials look solid, check retained earnings and fair value measurements.

AI Summary

Paychex Inc. filed its 10-Q for the period ending August 31, 2024. The filing details financial performance and position, including retained earnings and accumulated other comprehensive income as of August 31, 2023, and May 31, 2023. It also covers fair value measurements and various financial instruments like money market funds and municipal bonds.

Why It Matters

This filing provides investors with a detailed look at Paychex's financial health and operational performance during the first quarter of its fiscal year 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• N/A — Revenue (Specific revenue figures are not detailed in the provided header information.)
• N/A — Net Income (Specific net income figures are not detailed in the provided header information.)
• N/A — Earnings Per Share (Specific EPS figures are not detailed in the provided header information.)

Key Players & Entities

• PAYCHEX INC (company) — Filer
• 2024-08-31 (date) — Reporting Period End Date
• 2023-08-31 (date) — Prior Year Reporting Period End Date
• 2024-05-31 (date) — Prior Fiscal Year End Date

FAQ

Key Financial Figures

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

Filing Documents

• payx-20240831.htm (10-Q) — 2204KB
• payx-ex10_1.htm (EX-10.1) — 65KB
• payx-ex31_1.htm (EX-31.1) — 19KB
• payx-ex31_2.htm (EX-31.2) — 18KB
• payx-ex32_1.htm (EX-32.1) — 9KB
• payx-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-24-110834.txt ( ) — 8567KB
• payx-20240831.xsd (EX-101.SCH) — 890KB
• payx-20240831_htm.xml (XML) — 1835KB

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 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 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 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 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 August 31, August 31, 2024 2023 Revenue: Management Solutions $ 961.7 $ 955.5 PEO and Insurance Solutions 319.3 297.8 Total service revenue 1,281.0 1,253.3 Interest on funds held for clients 37.5 32.7 Total revenue 1,318.5 1,286.0 Expenses: Cost of service revenue 380.0 360.2 Selling, general and administrative expenses 391.8 389.5 Total expenses 771.8 749.7 Operating income 546.7 536.3 Other income, net 10.4 12.8 Income before income taxes 557.1 549.1 Income taxes 129.7 129.9 Net income $ 427.4 $ 419.2 Other comprehensive income/(loss), net of tax 64.8 ( 23.2 ) Comprehensive income $ 492.2 $ 396.0 Basic earnings per share $ 1.19 $ 1.16 Diluted earnings per share $ 1.18 $ 1.16 Weighted-average common shares outstanding 360.1 360.8 Weighted-average common shares outstanding, assuming dilution 361.9 362.8 See Notes to Consolidated Financial Statements. 1 Table of Contents PA YCHEX, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) In millions, except per share amounts August 31, May 31, 2024 2024 Assets Cash and cash equivalents $ 1,459.6 $ 1,468.9 Restricted cash 54.9 47.8 Corporate investments 38.4 33.9 Interest receivable 22.9 23.3 Accounts receivable, net of allowance for credit losses 1,126.2 1,059.6 PEO unbilled receivables, net of advance collections 553.8 542.4 Prepaid income taxes — 47.5 Prepaid expenses and other current assets 342.4 321.9 Current assets before funds held for clients 3,598.2 3,545.3 Funds held for clients 3,763.2 3,706.2 Total current assets 7,361.4 7,251.5 Long-term corporate investments — 3.7 Property and equipment, n

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) August 31, 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, 2024 ("fiscal 2024"). Operating results and cash flows for the three months ended August 31, 2024 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending May 31, 2025 ("f

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View this 10-Q filing on SEC EDGAR