Paychex 2005 Annual Report
2 0 0 5 ANNUAL REPORT ACCELERATE CORPORATE PROFILE Paychex, Inc. is a leading national provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource and benefits outsourcing services include 401(k) plan recordkeeping, workers’ compensation administration, section 125 plans, a professional employer organization, and other administrative services for business. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices and serves approximately 522,000 payroll clients nationwide. FINANCIAL HIGHLIGHTS In millions, except per share amount Year ended May 31, 2005 2004 Increase Results of Operations Service revenues $ 1,384.7 $ 1,240.1 12% Interest on funds held for clients 60.4 54.2 11% Total revenues $ 1,445.1 $ 1,294.3 12% Operating income $ 533.8 $ 433.3 23% As a percent of total revenues 37% 33% Net income $ 368.8 $ 303.0 22% As a percent of total revenues 26% 23% Diluted earnings per share $ .97 $ .80 21% Cash dividends per common share $ .51 $ .47 9% Operating income* $ 473.4 $ 379.1 25% As a percent of service revenues 34% 31% Financial Position Working capital $ 747.2 $ 558.5 Purchase of property and equipment $ 70.7 $ 50.6 Total assets $ 4,379.1 $ 3,950.2 Total debt $ – $ – Stockholders’ equity $ 1,385.7 $ 1,200.0 Return on stockholders’
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