Paychex, Inc. (PAYX) has reported a 12.25 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $202.50 million, or $0.56 a share in the quarter, compared with $180.40 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $199.30 million, or $0.55 a share compared with $180.40 million or $0.50 a share, a year ago. Revenue during the quarter grew 5.74 percent to $795.80 million from $752.60 million in the previous year period. Total expenses were 61.47 percent of quarterly revenues, down from 62.80 percent for the same period last year. This has led to an improvement of 132 basis points in operating margin to 38.53 percent.
Operating income for the quarter was $306.60 million, compared with $280 million in the previous year period.
Martin Mucci, president and chief executive officer, commented, "During the third quarter, we continued to experience solid growth across our human capital management ("HCM") product lines. One particular area was our time and attendance services, which reflected double-digit growth. During the third quarter, we celebrated the one-year anniversary of our acquisition of Advance Partners. We are pleased with the contribution this acquisition has made to Paychex and with the future opportunities in store for this business."
For fiscal year 2017, Paychex, Inc. expects revenue to grow in the range of 7 percent to 8 percent. The company net income to grow at 7 percent. The company adjusted net income to grow at 8 percent.
Operating cash flow falls marginally
Paychex, Inc. has generated cash of $769.30 million from operating activities during the nine month period, down 2.77 percent or $21.90 million, when compared with the last year period. The company has spent $947.10 million cash to meet investing activities during the nine month period as against cash outgo of $563.60 million in the last year period.
Cash flow from financing activities was $236.20 million for the nine month period as against cash outgo of $144.50 million in the last year period.
Cash and cash equivalents stood at $189.90 million as on Feb. 28, 2017, down 24.97 percent or $63.20 million from $253.10 million on Feb. 29, 2016.
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