Ceridian HCM Holding Inc. (“Ceridian” or the “Company”) (NYSE:CDAY)
(TSX:CDAY), a global human capital management (“HCM”) software
company, announced today its financial results for the fourth
quarter and fiscal year ended December 31, 2020. All financial
results are reported in U.S. dollars unless otherwise stated. A
reconciliation of U.S. generally accepted accounting principles
(“GAAP”) to non-GAAP financial measures has been provided
in this press release, including the accompanying tables. An
explanation of these measures is also included below under the
heading “Use of Non-GAAP Financial Measures.”
“Overall, despite the economic headwind from the pandemic, our
execution and financial performance exceeded expectations,” said
David Ossip, Chairman and Chief Executive Officer of Ceridian.
“Excluding float revenue, Dayforce recurring services revenue grew
by more than 19%. We are uniquely positioned to help customers
navigate this new world of work, and demand for Dayforce remains
strong.”
The average U.S. dollar to Canadian dollar foreign exchange rate
was $1.30 and $1.34, with a daily range of $1.27 to $1.33, and
$1.27 to $1.45 for the three and twelve months ended
December 31, 2020, respectively, compared to $1.32 and $1.33,
with a daily range of $1.30 to $1.33, and $1.30 to $1.36 for the
three and twelve months ended December 31, 2019,
respectively. As of December 31, 2020, the U.S. dollar to
Canadian dollar foreign exchange rate was $1.27. To present the
performance of the business excluding the effect of foreign
currency rate fluctuations, the Company presents revenue on a
constant currency basis, which we believe is useful to management
and investors. We have calculated revenue on a constant currency
basis by applying the average foreign exchange rate in effect
during the comparable prior period.
Financial Highlights for the Fourth Quarter and Full
Year 2020
The financial highlights below are on a year-over-year basis,
unless otherwise stated.
Dayforce Revenue
- Dayforce recurring services revenue was $130.9 million and
$500.2 million for the fourth quarter and full year of 2020,
respectively, an increase of 14.5% and 16.6%, respectively, on a
GAAP basis and 14.0% and 16.7%, respectively, on a constant
currency basis.
- Excluding float revenue, Dayforce recurring services revenue
was $123.8 million and $463.1 million for the fourth quarter and
full year of 2020, respectively, an increase of 19.8% and 22.5%,
respectively, on a GAAP basis and 19.3% and 22.7%, respectively, on
a constant currency basis.
- Dayforce revenue was $170.7 million and $648.8 million for
the fourth quarter and full year of 2020, respectively, an increase
of 7.6% and 13.9%, respectively, on a GAAP basis and 7.1% and
14.0%, respectively, on a constant currency basis.
- Excluding float revenue, Dayforce revenue was $163.6 million
and $611.7 million for the fourth quarter and full year of 2020,
respectively, an increase of 10.8% and 18.0%, respectively, on a
GAAP basis and 10.2% and 18.1%, respectively, on a constant
currency basis.
Revenue
- Cloud revenue, which includes both Dayforce and Powerpay, was
$193.9 million and $729.4 million for the fourth quarter and
full year of 2020, respectively, an increase of 5.3% and 10.5%,
respectively, on a GAAP basis and 4.7% and 10.7%, respectively, on
a constant currency basis.
- Excluding float revenue, Cloud revenue was $184.6 million and
$683.6 million for the fourth quarter and full year of 2020,
respectively, an increase of 8.5% and 14.5% respectively, on a GAAP
basis and 7.9% and 14.7%, respectively, on a constant currency
basis.
- Total revenue, which includes revenue from both our Cloud and
Bureau solutions, was $222.8 million and $842.5 million for
the fourth quarter and full year of 2020, respectively, an increase
of 0.5% and 2.2%, respectively, on a GAAP basis and a decline of
0.1% and an increase of 2.4%, respectively, on a constant currency
basis.
- Excluding float revenue, total revenue was $212.2 million and
$790.2 million for the fourth quarter and full year of 2020, an
increase of 3.8% and 6.2%, respectively, on a GAAP basis and 3.3%
and 6.4% respectively, on a constant currency basis.
Gross Margin
- Total gross margin of 38.4% and 40.5% for the fourth quarter
and full year of 2020, respectively, compared to 44.1% and 44.7%,
respectively.
- Cloud recurring services gross margin improved to 70.9% and
71.2% for the fourth quarter and full year of 2020, respectively,
compared to 68.8% and 69.6%, respectively, and Cloud recurring
service gross, excluding float revenue margin improved to 69.1% and
68.7% for the fourth quarter and full year of 2020, compared to
65.3% and 65.4%, respectively.
- Professional services and other gross margin declined to (4.1)%
and (7.5)% for the fourth quarter and full year of 2020,
respectively, compared to 5.9% and (4.0)%, respectively.
Net (Loss) Income and Net (Loss) Income Per Share
- Net loss was $17.3 million and $4.0 million for the fourth
quarter and full year of 2020, respectively, compared to net loss
of $1.5 million and net income of $78.7 million. Net loss for
the fourth quarter of 2020 included a one-time charge related to
the abandonment of certain leased facilities of $16.8 million and
net income for the full year of 2019 included a one-time benefit of
$62.6 million related to the release of a deferred tax valuation
allowance. Adjusted net income was $14.0 million and $73.1 million
for the fourth quarter and full year of 2020, respectively,
compared to $12.1 million and $67.8 million, respectively.
- Diluted net loss per share was $0.12 for the fourth quarter of
2020, compared to diluted net loss per share of $0.01. Adjusted
diluted net income per share was $0.09 for the fourth quarter of
2020, compared to $0.08. Diluted weighted average common shares
outstanding were 148.1 million and 144.1 million for the fourth
quarter of 2020 and 2019, respectively.
- Diluted net loss per share was $0.03 for the full year of 2020,
compared to diluted net income per share of $0.53. Adjusted diluted
net income per share was $0.50 for the full year of 2020, compared
to $0.46. Diluted weighted average common shares outstanding were
146.8 million and 148.8 million for the full year of 2020 and 2019,
respectively.
Adjusted EBITDA
- Adjusted EBITDA declined 25.5% to $33.1 million and 13.9%
to $159.0 million for the fourth quarter and full year of 2020,
respectively, compared to $44.4 million and $184.6 million,
respectively.
- Excluding float revenue, Adjusted EBITDA declined 17.0% and
increased 2.2% for the fourth quarter and full year of 2020,
respectively.
Other Key Performance Metrics
- Annual Cloud revenue retention rate was 95.8% for the full year
of 2020, compared to 96.3%.
- Cloud annualized recurring revenue (“ARR”) was $617.9 million
as of December 31, 2020, an increase of 6.2%, or $35.9
million.
Balance Sheet
- Cash and equivalents were $188.2 million as of
December 31, 2020, compared to $281.3 million as of
December 31, 2019.
- Total debt was $667.8 million as of December 31, 2020, a
reduction of $9.3 million, compared to $677.1 million as
of December 31, 2019.
Dayforce Live Customer Count
- 4,906 Dayforce customers were live on the Dayforce platform as
of December 31, 2020, a net increase of 543 customers,
compared to 4,363 Dayforce customers as of December 31, 2019,
and a net increase of 202 customers, compared to 4,704 as of
September 30, 2020.
- 4.2 million global active users were live on the Dayforce
platform as of December 31, 2020, up 7.7% compared to 3.9 million
global active users as of December 31, 2019.
- Excluding float revenue, the impact of lower employment levels
due to the COVID-19 pandemic, and on a constant currency basis,
Dayforce revenue per customer was $128,985 for the trailing twelve
months ended December 31, 2020, an increase of 8.5% for the
trailing twelve months ended December 31, 2019.
Business Outlook
While we are not providing full year guidance due to the ongoing
COVID-19 pandemic and the uncertain impact to employment levels,
based on information available to us as of February 9, 2021, we are
issuing the following guidance for the first quarter of 2021:
- Dayforce recurring services revenue of $141 million to $142
million, or an increase of approximately 10% to 11% on a GAAP basis
and 9% to 10% on a constant currency basis. Excluding float
revenue, Dayforce recurring services revenue is expected to grow
approximately 18% to 19% on both a GAAP and constant currency
basis.
- Dayforce revenue of $176 million to $178 million, or an
increase of approximately 4% to 5% on both a GAAP and constant
currency basis. Excluding float revenue, Dayforce revenue is
expected to grow approximately 10% to 11% on a GAAP basis and 9% to
10% on a constant currency basis.
- Cloud revenue of $194 million to $197 million, or an increase
of approximately 2% to 3% on a GAAP basis and 1% to 2% on a
constant currency basis. Excluding float revenue, Cloud revenue is
expected to grow approximately 7% to 9% on a GAAP basis and 6% to
8% on a constant currency basis.
- Total revenue of $220 million to $224 million, or a decline of
approximately 1% to an increase of approximately 1% on a GAAP basis
and a decline of approximately 2% to flat on a constant currency
basis. Excluding float revenue, total revenue is expected to grow
approximately 4% to 6% on a GAAP basis and 3% to 5% on a constant
currency basis.
- Float revenue of approximately $6 million within Dayforce
revenue, $8 million within Cloud revenue, and $9 million within
total revenue.
- Adjusted EBITDA of $32 million to $36 million.
In the second quarter of 2021, we expect Dayforce recurring
services revenue growth, excluding float revenue and on a constant
currency basis, to be above 22% compared to the second quarter of
2020, assuming no improvement or reduction from first quarter 2021
customer employment levels.
In the second half of 2021, we expect Dayforce recurring
services revenue growth, excluding float revenue and on a constant
currency basis, to be above 25% compared to the respectively third
and fourth quarters of 2020. This assumes recovery in employment
levels beginning in July 2021 and continuing through the end of
2021.
We have not included the impact of the Ascender acquisition in
our 2021 outlook but will update our outlook after closing – which
we expect to occur in the second quarter.
As we look forward to 2021, we are faced with the reality that
our high-margin float revenue will continue to decline as a result
of the lower interest rate environment, and that there will be a
continued COVID-19 pandemic employment headwind to our revenue.
Even in the face of these realities, we continue to invest in
Product Development as well as Sales & Marketing, with the goal
of achieving sustained high levels of Dayforce recurring revenue
growth into the future. Specifically, the investments will focus on
the following primary objectives: Dayforce Wallet and other
innovations in payroll, expanding our global footprint, advances in
the openness and extensibility of the Dayforce platform, and
growing our network of system integrator relationships. We expect
our continued investment will result in reduced Adjusted EBITDA
margins in 2021.
Our 2021 guidance assumes an average U.S. dollar to Canadian
dollar foreign exchange rate of $1.30, compared to an average rate
of $1.34 in the first quarter of 2020 and for the full year of
2020. We have not reconciled the Adjusted EBITDA range for the
first quarter of 2021 to the directly comparable GAAP financial
measure because applicable information for the future period, on
which this reconciliation would be based, is not readily available
due to uncertainty regarding, and the potential variability of,
depreciation and amortization, share-based compensation expense and
related employer taxes, changes in foreign currency exchange rates,
and other items.
Conference Call Details
Ceridian will host a conference call to discuss fourth quarter
and fiscal year 2020 earnings on Tuesday, February 9, 2021.
A live Zoom Video Webinar of the event can be accessed at 5:00
p.m. Eastern Time that same day through a direct registration link
at
https://ceridian.zoom.us/webinar/register/WN_d3_qU6J5RZauF1Ydy1xkYw.
Alternatively, the event can be accessed from the Events &
Presentations page on Ceridian’s Investor Relations website at
https://investors.ceridian.com. A replay and transcript will be
available after the conclusion of the live event on Ceridian’s
Investor Relations website.
About Ceridian HCM Holding Inc.
Ceridian. Makes Work Life Better™.
Ceridian is a global human capital management software company.
Dayforce, our flagship cloud HCM platform, provides human
resources, payroll, benefits, workforce management, and talent
management functionality. Our platform is used to optimize
management of the entire employee lifecycle, including attracting,
engaging, paying, deploying, and developing people. Ceridian has
solutions for organizations of all sizes.
Use of Non-GAAP Financial
Measures
We use certain non-GAAP financial measures in this
release including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
net income, revenue on a constant currency basis, Cloud revenue
retention rate, and Cloud ARR. We believe that Adjusted EBITDA,
Adjusted EBITDA margin, and Adjusted net income,
non-GAAP financial measures, are useful to management and
investors as supplemental measures to evaluate our overall
operating performance. Adjusted EBITDA and Adjusted EBITDA margin
are components of our management incentive plan and are used by
management to assess performance and to compare our operating
performance to our competitors. We define Adjusted EBITDA as net
income (loss) before interest, taxes, depreciation, and
amortization, as adjusted to exclude gain (loss) on assets and
liabilities held in a foreign currency other than the functional
currency of a company subsidiary, share-based compensation expense
and related employer taxes, severance charges, restructuring
consulting fees, and other non-recurring charges. Adjusted EBITDA
margin is determined by calculating the percentage Adjusted EBITDA
is of total revenue. Adjusted net income is defined as net income
(loss), as adjusted to exclude release of the valuation allowance,
gain (loss) on assets and liabilities held in a foreign currency
other than the functional currency of a company subsidiary,
share-based compensation expense and related employer taxes,
severance charges, restructuring consulting fees, and other
non-recurring charges, all of which are adjusted for the effect of
income taxes. Management believes that Adjusted EBITDA, Adjusted
EBITDA margin, and Adjusted net income are helpful in highlighting
management performance trends because Adjusted EBITDA, Adjusted
EBITDA margin, and Adjusted net income exclude the results of
decisions that are outside the normal course of our business
operations.
Our presentation of Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted net income are intended as supplemental measures of our
performance that are not required by, or presented in accordance
with, GAAP. Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted
net income should not be considered as alternatives to net income,
earnings per share, or any other performance measures derived in
accordance with GAAP, or as measures of operating cash flows or
liquidity. Our presentation of Adjusted EBITDA, Adjusted EBITDA
margin, and Adjusted net income should not be construed to imply
that our future results will be unaffected by similar items to
those eliminated in this presentation. Adjusted EBITDA, Adjusted
EBITDA margin, and Adjusted net income are included in this
discussion because they are key metrics used by management to
assess our operating performance.
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted net income
are not defined under GAAP, are not measures of net income or any
other performance measures derived in accordance with GAAP, and are
subject to important limitations. Our use of the terms Adjusted
EBITDA, Adjusted EBITDA margin, and Adjusted net income may not be
comparable to similarly titled measures of other companies in our
industry and are not measures of performance calculated in
accordance with GAAP.
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted net income
have important limitations as analytical tools, and you should not
consider them in isolation or as substitutes for analysis of our
results as reported under GAAP.
In evaluating Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted net income, you should be aware that in the future we may
incur expenses similar to those eliminated in this
presentation.
We present revenue on a constant currency basis to assess how
our underlying businesses performed, excluding the effect of
foreign currency rate fluctuations, which we believe is useful to
management and investors. We calculate revenue on a constant
currency basis by applying the average foreign exchange rate in
effect during the comparable prior period. Dayforce revenue per
customer is calculated on a constant currency basis by applying the
prior year average exchange rate to all comparable periods.
Our annual Cloud revenue retention rate measures the percentage
of revenues that we retain from our existing Cloud customers. We
use this revenue retention rate as an indicator of customer
satisfaction and future revenues. We calculate the annual Cloud
revenue retention rate as a percentage, where the numerator is the
Cloud ARR for the prior year, less the Cloud ARR from lost Cloud
customers during that year; and the denominator is the Cloud ARR
for the prior year. We set annual targets for Cloud revenue
retention rate and monitor progress toward those targets on a
quarterly basis by reviewing known customer losses and anticipated
future customer losses. Our Cloud revenue retention rate may
fluctuate as a result of a number of factors, including the mix of
Cloud solutions used by customers, the level of customer
satisfaction, and changes in the number of users live on our Cloud
solutions. We have not reconciled the annual Cloud revenue
retention rate because there is no directly comparable GAAP
financial measure.
We derive the majority of our Cloud revenues from recurring
fees, primarily per employee, per month subscription charges. We
also derive recurring revenue from fees related to the rental and
maintenance of clocks, charges for once-a-year services, such as
year-end tax statements, and investment income on our customer
funds held in trust before such funds are remitted to taxing
authorities, customer employees, or other third parties. To
calculate Cloud ARR, we start with recurring revenue at year end,
subtract the once-a-year charges, annualize the revenue for
customers live for less than a full year to reflect the revenue
that would have been realized if the customer had been live for a
full year, and add back the once-a-year charges. We set annual
targets for Cloud ARR and monitor progress toward those targets on
a quarterly basis. We have not reconciled the Cloud ARR because
there is no directly comparable GAAP financial measure.
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to risks and uncertainties. All statements other than
statements of historical fact or relating to present facts or
current conditions included in this press release are
forward-looking statements. Forward-looking statements give our
current expectations and projections relating to our financial
condition, results of operations, plans, objectives, future
performance and business. You can identify forward-looking
statements by the fact that they do not relate strictly to
historical or current facts. Forward-looking statements in this
press release include statements relating to the fiscal year of
2021, as well as those relating to future growth initiatives. These
statements may include words such as “anticipate,” “estimate,”
“expect,” “project,” “seek,” “plan,” “intend,” “believe,” “will,”
“may,” “could,” “continue,” “likely,” “should,” and other words and
terms of similar meaning in connection with any discussion of the
timing or nature of future operating or financial performance or
other events but not all forward-looking statements contain these
identifying words. The forward-looking statements contained in this
press release are based on assumptions that we have made in light
of our industry experience and our perceptions of historical
trends, current conditions, expected future developments and other
factors that we believe are appropriate under the circumstances. As
you consider this press release, you should understand that these
statements are not guarantees of performance or results. These
assumptions and our future performance or results involve risks and
uncertainties (many of which are beyond our control). These risks
and uncertainties include, but are not limited to, the
following:
- the impact of the Coronavirus disease 2019 (“COVID-19”)
pandemic on our business, operations, and financial results;
- our inability to manage our growth effectively or execute on
our growth strategy;
- our inability to successfully expand our current offerings into
new markets or further penetrate existing markets;
- our failure to provide new or enhanced functionality and
features;
- significant competition in the market in which our solutions
compete;
- our failure to manage our aging technical operations
infrastructure;
- system breaches, interruptions or failures, including
cyber-security breaches, identity theft, or other disruptions that
could compromise customer information or sensitive company
information;
- our failure to comply with applicable privacy, security, data,
and financial services laws, regulations and standards, including
our ongoing consent order with the Federal Trade Commission
regarding data protection;
- our failure to properly update our solutions to enable our
customers to comply with applicable laws;
- changes in regulations governing financial services, privacy
concerns, and laws or other domestic or foreign data protection
regulations;
- our inability to maintain necessary third party relationships,
and third party software licenses, and identify errors in the
software we license;
- our inability to offer and deliver high-quality technical
support, implementation and professional services;
- our inability to attract and retain key executive officers and
highly skilled employees; or
- other risks and uncertainties described in our most recent
annual report on Form 10-K, subsequent quarterly reports on Form
10-Q, and other filings with the Securities and Exchange
Commission.
Additional factors or events that could cause our actual
performance to differ from these forward-looking statements may
emerge from time to time, and it is not possible for us to predict
all of them. Should one or more of these risks or uncertainties
materialize, or should any of our assumptions prove incorrect, our
actual financial condition, results of operations, future
performance and business may vary in material respects from the
performance projected in these forward-looking statements. In
addition to any factors and assumptions set forth above in this
press release, the material factors and assumptions used to develop
the forward-looking information include, but are not limited to:
the general economy remains stable; the competitive environment in
the HCM market remains stable; the demand environment for HCM
solutions remains stable; our implementation capabilities and cycle
times remain stable; foreign exchange rates, both current and those
used in developing forward-looking statements, specifically USD to
CAD, remain stable at, or near, current rates; we will be able to
maintain our relationships with our employees, customers and
partners; we will continue to attract qualified personnel to
support our development requirements and the support of our new and
existing customers; and that the risk factors noted above,
individually or collectively, do not have a material impact on the
Company. Any forward-looking statement made by us in this press
release speaks only as of the date on which it is made. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
|
Ceridian HCM Holding Inc. |
|
Consolidated Balance Sheets |
|
|
December 31, |
|
|
2020 |
|
|
2019 |
|
(Dollars in millions,
except share data) |
(unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and equivalents |
$ |
188.2 |
|
|
$ |
281.3 |
|
Trade and other receivables, net |
|
101.1 |
|
|
|
80.4 |
|
Prepaid expenses and other current assets |
|
73.9 |
|
|
|
57.9 |
|
Total current assets before customer trust funds |
|
363.2 |
|
|
|
419.6 |
|
Customer trust funds |
|
3,759.4 |
|
|
|
3,204.1 |
|
Total current assets |
|
4,122.6 |
|
|
|
3,623.7 |
|
Right of use lease asset |
|
27.9 |
|
|
|
32.0 |
|
Property, plant, and
equipment, net |
|
136.4 |
|
|
|
128.3 |
|
Goodwill |
|
2,031.8 |
|
|
|
1,973.5 |
|
Other intangible assets,
net |
|
195.0 |
|
|
|
177.9 |
|
Other assets |
|
187.6 |
|
|
|
150.3 |
|
Total assets |
$ |
6,701.3 |
|
|
$ |
6,085.7 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Current portion of long-term debt |
$ |
7.2 |
|
|
$ |
10.8 |
|
Current portion of long-term lease liabilities |
|
10.5 |
|
|
|
8.8 |
|
Accounts payable |
|
38.9 |
|
|
|
43.2 |
|
Deferred revenue |
|
24.4 |
|
|
|
25.5 |
|
Employee compensation and benefits |
|
64.6 |
|
|
|
75.9 |
|
Other accrued expenses |
|
20.5 |
|
|
|
13.9 |
|
Total current liabilities before customer trust funds
obligations |
|
166.1 |
|
|
|
178.1 |
|
Customer trust funds obligations |
|
3,697.8 |
|
|
|
3,193.6 |
|
Total current liabilities |
|
3,863.9 |
|
|
|
3,371.7 |
|
Long-term debt, less current
portion |
|
660.6 |
|
|
|
666.3 |
|
Employee benefit plans |
|
24.4 |
|
|
|
117.2 |
|
Long-term lease liabilities,
less current portion |
|
33.6 |
|
|
|
30.1 |
|
Other liabilities |
|
20.6 |
|
|
|
18.1 |
|
Total liabilities |
|
4,603.1 |
|
|
|
4,203.4 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Common stock, $0.01 par, 500,000,000 shares authorized, 148,571,412
and 144,386,618 shares issued and outstanding,
respectively |
|
1.5 |
|
|
|
1.4 |
|
Additional paid in capital |
|
2,606.5 |
|
|
|
2,449.1 |
|
Accumulated deficit |
|
(233.8 |
) |
|
|
(229.8 |
) |
Accumulated other comprehensive loss |
|
(276.0 |
) |
|
|
(338.4 |
) |
Total stockholders’ equity |
|
2,098.2 |
|
|
|
1,882.3 |
|
Total liabilities and equity |
$ |
6,701.3 |
|
|
$ |
6,085.7 |
|
|
|
|
|
|
|
|
|
|
Ceridian HCM Holding Inc. |
|
Consolidated Statements of Operations |
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
(Dollars in millions,
except share and per share data) |
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
$ |
181.5 |
|
|
$ |
176.4 |
|
|
$ |
690.2 |
|
|
$ |
680.1 |
|
Professional services and other |
|
41.3 |
|
|
|
45.4 |
|
|
|
152.3 |
|
|
|
144.0 |
|
Total revenue |
|
222.8 |
|
|
|
221.8 |
|
|
|
842.5 |
|
|
|
824.1 |
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
|
57.5 |
|
|
|
52.8 |
|
|
|
213.3 |
|
|
|
201.8 |
|
Professional services and other |
|
43.0 |
|
|
|
42.7 |
|
|
|
163.7 |
|
|
|
149.8 |
|
Product development and management |
|
26.2 |
|
|
|
18.8 |
|
|
|
83.7 |
|
|
|
67.9 |
|
Depreciation and amortization |
|
10.6 |
|
|
|
9.7 |
|
|
|
40.5 |
|
|
|
36.4 |
|
Total
cost of revenue |
|
137.3 |
|
|
|
124.0 |
|
|
|
501.2 |
|
|
|
455.9 |
|
Gross
profit |
|
85.5 |
|
|
|
97.8 |
|
|
|
341.3 |
|
|
|
368.2 |
|
Selling,
general and administrative |
|
107.4 |
|
|
|
78.1 |
|
|
|
333.5 |
|
|
|
295.9 |
|
Operating (loss) profit |
|
(21.9 |
) |
|
|
19.7 |
|
|
|
7.8 |
|
|
|
72.3 |
|
Interest expense, net |
|
5.7 |
|
|
|
7.2 |
|
|
|
25.1 |
|
|
|
32.4 |
|
Other expense, net |
|
— |
|
|
|
0.9 |
|
|
|
2.7 |
|
|
|
5.6 |
|
(Loss)
income before income taxes |
|
(27.6 |
) |
|
|
11.6 |
|
|
|
(20.0 |
) |
|
|
34.3 |
|
Income
tax (benefit) expense |
|
(10.3 |
) |
|
|
13.1 |
|
|
|
(16.0 |
) |
|
|
(44.4 |
) |
Net
(loss) income |
$ |
(17.3 |
) |
|
$ |
(1.5 |
) |
|
$ |
(4.0 |
) |
|
$ |
78.7 |
|
Net
(loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.12 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.55 |
|
Diluted |
$ |
(0.12 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.53 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
148,086,778 |
|
|
|
144,066,263 |
|
|
|
146,774,471 |
|
|
|
142,049,112 |
|
Diluted |
|
148,086,778 |
|
|
|
144,066,263 |
|
|
|
146,774,471 |
|
|
|
148,756,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceridian HCM Holding Inc. |
|
Consolidated Statements of Cash Flows |
|
Year Ended December 31, |
|
|
2020 |
|
|
2019 |
|
(Dollars in
millions) |
(unaudited) |
|
|
|
|
|
Net (loss) income |
$ |
(4.0 |
) |
|
$ |
78.7 |
|
Adjustments to reconcile net
(loss) income to net cash (used in) provided by
operating activities: |
|
|
|
|
|
|
|
Deferred income tax benefit |
|
(7.0 |
) |
|
|
(69.4 |
) |
Depreciation and amortization |
|
51.8 |
|
|
|
57.1 |
|
Amortization of debt issuance costs and debt discount |
|
1.2 |
|
|
|
1.2 |
|
Lease abandonment costs |
|
16.8 |
|
|
|
— |
|
Net periodic pension and postretirement cost |
|
3.3 |
|
|
|
5.2 |
|
Provision for doubtful accounts |
|
2.0 |
|
|
|
3.2 |
|
Share-based compensation |
|
65.8 |
|
|
|
36.5 |
|
Other |
|
1.0 |
|
|
|
(0.4 |
) |
Changes in operating assets and
liabilities excluding effects of acquisitions and
divestitures: |
|
|
|
|
|
|
|
Trade and other receivables |
|
(12.0 |
) |
|
|
(16.4 |
) |
Prepaid expenses and other current assets |
|
(6.8 |
) |
|
|
(8.0 |
) |
Accounts payable and other accrued expenses |
|
(1.4 |
) |
|
|
3.8 |
|
Deferred revenue |
|
(1.2 |
) |
|
|
0.8 |
|
Employee compensation and benefits |
|
(104.0 |
) |
|
|
(11.1 |
) |
Accrued taxes |
|
(3.7 |
) |
|
|
(11.1 |
) |
Other assets and liabilities |
|
(32.0 |
) |
|
|
(19.5 |
) |
Net cash (used in) provided by
operating activities |
|
(30.2 |
) |
|
|
50.6 |
|
Cash Flows from Investing
Activities |
|
|
|
|
|
|
|
Purchase of customer trust funds
marketable securities |
|
(212.4 |
) |
|
|
(408.4 |
) |
Proceeds from sale and maturity
of customer trust funds marketable securities |
|
369.3 |
|
|
|
374.5 |
|
Expenditures for property, plant,
and equipment |
|
(18.1 |
) |
|
|
(16.3 |
) |
Expenditures for software and
technology |
|
(41.7 |
) |
|
|
(38.9 |
) |
Acquisition costs, net of cash
acquired |
|
(58.3 |
) |
|
|
(30.2 |
) |
Net cash provided by (used in)
investing activities |
|
38.8 |
|
|
|
(119.3 |
) |
Cash Flows from Financing
Activities |
|
|
|
|
|
|
|
Increase in customer trust funds
obligations, net |
|
483.6 |
|
|
|
529.9 |
|
Repayment of long-term debt
obligations |
|
(10.0 |
) |
|
|
(7.2 |
) |
Proceeds from revolving credit
facility |
|
295.0 |
|
|
|
— |
|
Repayment of revolving credit
facility |
|
(295.0 |
) |
|
|
— |
|
Proceeds from issuance of common
stock under share-based compensation plans |
|
91.7 |
|
|
|
87.0 |
|
Net cash provided by financing
activities |
|
565.3 |
|
|
|
609.7 |
|
Effect of Exchange Rate
Changes on Cash |
|
(4.0 |
) |
|
|
11.3 |
|
Net increase in cash and
equivalents |
|
569.9 |
|
|
|
552.3 |
|
Cash, restricted cash, and
equivalents at beginning of year |
|
1,658.6 |
|
|
|
1,106.3 |
|
Cash, restricted cash, and
equivalents at end of year |
$ |
2,228.5 |
|
|
$ |
1,658.6 |
|
Reconciliation of cash,
restricted cash, and equivalents to the consolidated balance
sheets |
|
|
|
|
|
|
|
Cash and equivalents |
$ |
188.2 |
|
|
$ |
281.3 |
|
Restricted cash and equivalents
included in customer trust funds |
$ |
2,040.3 |
|
|
$ |
1,377.3 |
|
Total cash, restricted cash, and
equivalents |
$ |
2,228.5 |
|
|
$ |
1,658.6 |
|
Supplemental Cash Flow
Information: |
|
|
|
|
|
|
|
Cash paid for interest |
$ |
26.7 |
|
|
$ |
37.4 |
|
Cash paid for income taxes |
$ |
4.2 |
|
|
$ |
36.2 |
|
Cash received from income tax
refunds |
$ |
9.6 |
|
|
$ |
0.3 |
|
|
|
|
|
|
|
|
|
Ceridian HCM Holding Inc.
Revenue Financial Measures
(Unaudited)
|
Three Months EndedDecember
31, |
|
|
Percentagechange inrevenue asreported |
|
|
Impact ofchanges
inforeigncurrency(a) |
|
|
Percentagechange inrevenue on aconstant
currencybasis(a) |
|
|
2020 |
|
|
2019 |
|
|
2020 vs. 2019 |
|
|
|
|
|
2020 vs. 2019 |
|
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce recurring services, excluding float |
$ |
123.8 |
|
|
$ |
103.3 |
|
|
|
19.8 |
% |
|
|
0.5 |
% |
|
|
19.3 |
% |
Dayforce float |
|
7.1 |
|
|
|
11.0 |
|
|
|
(35.5 |
)% |
|
|
(— |
)% |
|
|
(35.5 |
)% |
Total Dayforce recurring services |
|
130.9 |
|
|
|
114.3 |
|
|
|
14.5 |
% |
|
|
0.5 |
% |
|
|
14.0 |
% |
Powerpay recurring services, excluding float |
|
20.7 |
|
|
|
22.0 |
|
|
|
(5.9 |
)% |
|
|
0.9 |
% |
|
|
(6.8 |
)% |
Powerpay float |
|
2.2 |
|
|
|
3.0 |
|
|
|
(26.7 |
)% |
|
|
3.3 |
% |
|
|
(30.0 |
)% |
Total Powerpay recurring services |
|
22.9 |
|
|
|
25.0 |
|
|
|
(8.4 |
)% |
|
|
1.2 |
% |
|
|
(9.6 |
)% |
Total Cloud recurring services |
|
153.8 |
|
|
|
139.3 |
|
|
|
10.4 |
% |
|
|
0.6 |
% |
|
|
9.8 |
% |
Dayforce professional services and other |
|
39.8 |
|
|
|
44.4 |
|
|
|
(10.4 |
)% |
|
|
0.4 |
% |
|
|
(10.8 |
)% |
Powerpay professional services and other |
|
0.3 |
|
|
|
0.5 |
|
|
|
(40.0 |
)% |
|
|
(— |
)% |
|
|
(40.0 |
)% |
Total Cloud professional services and other |
|
40.1 |
|
|
|
44.9 |
|
|
|
(10.7 |
)% |
|
|
0.4 |
% |
|
|
(11.1 |
)% |
Total Cloud revenue |
|
193.9 |
|
|
|
184.2 |
|
|
|
5.3 |
% |
|
|
0.6 |
% |
|
|
4.7 |
% |
Bureau recurring services, excluding float |
|
26.4 |
|
|
|
33.8 |
|
|
|
(21.9 |
)% |
|
|
(0.6 |
)% |
|
|
(21.3 |
)% |
Bureau float |
|
1.3 |
|
|
|
3.3 |
|
|
|
(60.6 |
)% |
|
|
9.1 |
% |
|
|
(69.7 |
)% |
Total Bureau recurring services |
|
27.7 |
|
|
|
37.1 |
|
|
|
(25.3 |
)% |
|
|
0.3 |
% |
|
|
(25.6 |
)% |
Bureau professional services and other |
|
1.2 |
|
|
|
0.5 |
|
|
|
140.0 |
% |
|
|
20.0 |
% |
|
|
120.0 |
% |
Total Bureau revenue |
|
28.9 |
|
|
|
37.6 |
|
|
|
(23.1 |
)% |
|
|
0.6 |
% |
|
|
(23.7 |
)% |
Total
revenue |
$ |
222.8 |
|
|
$ |
221.8 |
|
|
|
0.5 |
% |
|
|
0.6 |
% |
|
|
(0.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce |
$ |
170.7 |
|
|
$ |
158.7 |
|
|
|
7.6 |
% |
|
|
0.5 |
% |
|
|
7.1 |
% |
Powerpay |
|
23.2 |
|
|
|
25.5 |
|
|
|
(9.0 |
)% |
|
|
1.2 |
% |
|
|
(10.2 |
)% |
Total
Cloud revenue |
$ |
193.9 |
|
|
$ |
184.2 |
|
|
|
5.3 |
% |
|
|
0.6 |
% |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce, excluding float |
$ |
163.6 |
|
|
$ |
147.7 |
|
|
|
10.8 |
% |
|
|
0.6 |
% |
|
|
10.2 |
% |
Powerpay, excluding float |
|
21.0 |
|
|
|
22.5 |
|
|
|
(6.7 |
)% |
|
|
0.9 |
% |
|
|
(7.6 |
)% |
Cloud float |
|
9.3 |
|
|
|
14.0 |
|
|
|
(33.6 |
)% |
|
|
0.7 |
% |
|
|
(34.3 |
)% |
Total
Cloud revenue |
$ |
193.9 |
|
|
$ |
184.2 |
|
|
|
5.3 |
% |
|
|
0.6 |
% |
|
|
4.7 |
% |
(a) We have calculated revenue on a constant currency basis by
applying the average foreign exchange rate in effect during the
comparable prior period.
Ceridian HCM Holding Inc.
Revenue Financial Measures
(Unaudited)
|
Year EndedDecember 31, |
|
|
Percentagechange inrevenue asreported |
|
|
Impact ofchanges
inforeigncurrency
(a) |
|
|
Percentagechange inrevenue on aconstantcurrency
basis(a) |
|
|
2020 |
|
|
2019 |
|
|
2020 vs. 2019 |
|
|
|
|
|
|
2020 vs. 2019 |
|
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce recurring services, excluding float |
$ |
463.1 |
|
|
$ |
377.9 |
|
|
|
22.5 |
% |
|
|
(0.2 |
)% |
|
|
22.7 |
% |
Dayforce float |
|
37.1 |
|
|
|
51.1 |
|
|
|
(27.4 |
)% |
|
|
(0.2 |
)% |
|
|
(27.2 |
)% |
Total Dayforce recurring services |
|
500.2 |
|
|
|
429.0 |
|
|
|
16.6 |
% |
|
|
(0.1 |
)% |
|
|
16.7 |
% |
Powerpay recurring services, excluding float |
|
70.8 |
|
|
|
76.9 |
|
|
|
(7.9 |
)% |
|
|
(0.4 |
)% |
|
|
(7.5 |
)% |
Powerpay float |
|
8.7 |
|
|
|
12.1 |
|
|
|
(28.1 |
)% |
|
|
(— |
)% |
|
|
(28.1 |
)% |
Total Powerpay recurring services |
|
79.5 |
|
|
|
89.0 |
|
|
|
(10.7 |
)% |
|
|
(0.4 |
)% |
|
|
(10.3 |
)% |
Total Cloud recurring services |
|
579.7 |
|
|
|
518.0 |
|
|
|
11.9 |
% |
|
|
(0.2 |
)% |
|
|
12.1 |
% |
Dayforce professional services and other |
|
148.6 |
|
|
|
140.7 |
|
|
|
5.6 |
% |
|
|
(0.2 |
)% |
|
|
5.8 |
% |
Powerpay professional services and other |
|
1.1 |
|
|
|
1.3 |
|
|
|
(15.4 |
)% |
|
|
(— |
)% |
|
|
(15.4 |
)% |
Total Cloud professional services and other |
|
149.7 |
|
|
|
142.0 |
|
|
|
5.4 |
% |
|
|
(0.2 |
)% |
|
|
5.6 |
% |
Total Cloud revenue |
|
729.4 |
|
|
|
660.0 |
|
|
|
10.5 |
% |
|
|
(0.2 |
)% |
|
|
10.7 |
% |
Bureau recurring services, excluding float |
|
104.0 |
|
|
|
145.1 |
|
|
|
(28.3 |
)% |
|
|
(0.3 |
)% |
|
|
(28.0 |
)% |
Bureau float |
|
6.5 |
|
|
|
17.0 |
|
|
|
(61.8 |
)% |
|
|
1.1 |
% |
|
|
(62.9 |
)% |
Total Bureau recurring services |
|
110.5 |
|
|
|
162.1 |
|
|
|
(31.8 |
)% |
|
|
(0.2 |
)% |
|
|
(31.6 |
)% |
Bureau professional services and other |
|
2.6 |
|
|
|
2.0 |
|
|
|
30.0 |
% |
|
|
5.0 |
% |
|
|
25.0 |
% |
Total Bureau revenue |
|
113.1 |
|
|
|
164.1 |
|
|
|
(31.1 |
)% |
|
|
(0.1 |
)% |
|
|
(31.0 |
)% |
Total revenue |
$ |
842.5 |
|
|
$ |
824.1 |
|
|
|
2.2 |
% |
|
|
(0.2 |
)% |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce |
$ |
648.8 |
|
|
$ |
569.7 |
|
|
|
13.9 |
% |
|
|
(0.1 |
)% |
|
|
14.0 |
% |
Powerpay |
|
80.6 |
|
|
|
90.3 |
|
|
|
(10.7 |
)% |
|
|
(0.3 |
)% |
|
|
(10.4 |
)% |
Total Cloud revenue |
$ |
729.4 |
|
|
$ |
660.0 |
|
|
|
10.5 |
% |
|
|
(0.2 |
)% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dayforce, excluding float |
$ |
611.7 |
|
|
$ |
518.6 |
|
|
|
18.0 |
% |
|
|
(0.1 |
)% |
|
|
18.1 |
% |
Powerpay, excluding float |
|
71.9 |
|
|
|
78.2 |
|
|
|
(8.1 |
)% |
|
|
(0.4 |
)% |
|
|
(7.7 |
)% |
Cloud float |
|
45.8 |
|
|
|
63.2 |
|
|
|
(27.5 |
)% |
|
|
(0.1 |
)% |
|
|
(27.4 |
)% |
Total Cloud revenue |
$ |
729.4 |
|
|
$ |
660.0 |
|
|
|
10.5 |
% |
|
|
(0.2 |
)% |
|
|
10.7 |
% |
(a) We have calculated revenue on a constant currency basis by
applying the average foreign exchange rate in effect during the
comparable prior period.
Ceridian HCM Holding Inc.
Reconciliation of GAAP
to Non-GAAP Financial Measures
(Unaudited)
The following tables present a reconciliation of our reported
results to our non-GAAP financial measures Adjusted
EBITDA, Adjusted EBITDA margin, and Adjusted net income for all
periods presented:
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
(Dollars in millions) |
|
Net (loss) income |
$ |
(17.3 |
) |
|
$ |
(1.5 |
) |
|
$ |
(4.0 |
) |
|
$ |
78.7 |
|
Interest expense, net |
|
5.7 |
|
|
|
7.2 |
|
|
|
25.1 |
|
|
|
32.4 |
|
Income tax expense (benefit) |
|
(10.3 |
) |
|
|
13.1 |
|
|
|
(16.0 |
) |
|
|
(44.4 |
) |
Depreciation and amortization |
|
14.9 |
|
|
|
13.2 |
|
|
|
51.8 |
|
|
|
57.1 |
|
EBITDA (a) |
|
(7.0 |
) |
|
|
32.0 |
|
|
|
56.9 |
|
|
|
123.8 |
|
Intercompany foreign exchange (gain) loss |
|
(1.1 |
) |
|
|
(0.4 |
) |
|
|
(1.0 |
) |
|
|
0.4 |
|
Share-based compensation (b) |
|
20.4 |
|
|
|
10.7 |
|
|
|
68.9 |
|
|
|
37.7 |
|
Severance charges (c) |
|
2.8 |
|
|
|
1.8 |
|
|
|
9.7 |
|
|
|
6.2 |
|
Restructuring consulting fees (d) |
|
1.2 |
|
|
|
1.7 |
|
|
|
8.1 |
|
|
|
5.3 |
|
Other non-recurring charges (e) |
|
16.8 |
|
|
|
(1.4 |
) |
|
|
16.4 |
|
|
|
11.2 |
|
Adjusted EBITDA |
$ |
33.1 |
|
|
$ |
44.4 |
|
|
$ |
159.0 |
|
|
$ |
184.6 |
|
Adjusted EBITDA margin |
|
14.9 |
% |
|
|
20.0 |
% |
|
|
18.9 |
% |
|
|
22.4 |
% |
(a) |
We
define EBITDA as net income or loss before interest, taxes, and
depreciation and amortization. |
(b) |
Represents share-based
compensation expense and related employer taxes. |
(c) |
Represents costs for severance
compensation paid to employees whose positions have been eliminated
or who have been terminated not for cause. |
(d) |
Represents consulting fees and
expenses incurred during the periods presented in connection with
any acquisition, investment, disposition, recapitalization, equity
offering, issuance or repayment of debt, issuance of equity
interests, or refinancing. |
(e) |
Comprised of (1) (recovery) loss
on unrecovered duplicate payments associated with our isolated
service incident, and (2) charges of $16.8 million during 2020
related to the abandonment of certain leased facilities. |
|
Three Months Ended December 31, 2020 |
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income taxeffects (b) |
|
|
Adjusted |
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
$ |
57.5 |
|
|
$ |
1.6 |
|
|
$ |
0.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
55.7 |
|
Professional services and other |
|
43.0 |
|
|
|
1.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
41.7 |
|
Product development and management |
|
26.2 |
|
|
|
3.5 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
22.4 |
|
Depreciation and amortization |
|
10.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10.6 |
|
Total cost of revenue |
|
137.3 |
|
|
|
6.4 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
130.4 |
|
Sales
and marketing |
|
49.4 |
|
|
|
2.0 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
45.5 |
|
General
and administrative |
|
58.0 |
|
|
|
12.0 |
|
|
|
0.4 |
|
|
|
18.0 |
|
|
|
— |
|
|
|
27.6 |
|
Operating (loss) profit |
|
(21.9 |
) |
|
|
20.4 |
|
|
|
2.8 |
|
|
|
18.0 |
|
|
|
— |
|
|
|
19.3 |
|
Other
expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.1 |
) |
|
|
— |
|
|
|
1.1 |
|
Depreciation and amortization |
|
14.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14.9 |
|
EBITDA |
$ |
(7.0 |
) |
|
$ |
20.4 |
|
|
$ |
2.8 |
|
|
$ |
16.9 |
|
|
$ |
— |
|
|
$ |
33.1 |
|
Net
(loss) income |
$ |
(17.3 |
) |
|
$ |
20.4 |
|
|
$ |
2.8 |
|
|
$ |
16.9 |
|
|
$ |
(8.8 |
) |
|
$ |
14.0 |
|
Net
(loss) income per share- basic (c) |
$ |
(0.12 |
) |
|
$ |
0.14 |
|
|
$ |
0.02 |
|
|
$ |
0.11 |
|
|
$ |
(0.06 |
) |
|
$ |
0.09 |
|
Net
(loss) income per share- diluted (c) |
$ |
(0.12 |
) |
|
$ |
0.14 |
|
|
$ |
0.02 |
|
|
$ |
0.11 |
|
|
$ |
(0.06 |
) |
|
$ |
0.09 |
|
(a) |
Other includes intercompany foreign exchange gain, restructuring
consulting fees, and lease abandonment charges. |
(b) |
Income tax effects have been
calculated based on the statutory tax rates in effect in the U.S.
and foreign jurisdictions during the quarter. |
(c) |
GAAP and Adjusted basic and
diluted net income per share are calculated based upon 148,086,778
weighted-average shares of common stock. |
|
Three Months Ended December 31, 2019 |
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income taxeffects (b) |
|
|
Adjusted |
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
$ |
52.8 |
|
|
$ |
0.9 |
|
|
$ |
0.7 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
51.2 |
|
Professional services and other |
|
42.7 |
|
|
|
0.6 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
41.9 |
|
Product development and management |
|
18.8 |
|
|
|
0.9 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
17.7 |
|
Depreciation and amortization |
|
9.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.7 |
|
Total cost of revenue |
|
124.0 |
|
|
|
2.4 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
— |
|
|
|
120.5 |
|
Sales and marketing |
|
44.4 |
|
|
|
1.4 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
42.6 |
|
General and administrative |
|
33.7 |
|
|
|
6.9 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
26.2 |
|
Operating profit |
|
19.7 |
|
|
|
10.7 |
|
|
|
1.8 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
32.5 |
|
Other expense, net |
|
0.9 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
1.3 |
|
Depreciation and
amortization |
|
13.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13.2 |
|
EBITDA |
$ |
32.0 |
|
|
$ |
10.7 |
|
|
$ |
1.8 |
|
|
$ |
(0.1 |
) |
|
$ |
— |
|
|
$ |
44.4 |
|
Net (loss) income |
$ |
(1.5 |
) |
|
$ |
10.7 |
|
|
$ |
1.8 |
|
|
$ |
3.1 |
|
|
$ |
(2.0 |
) |
|
$ |
12.1 |
|
Net (loss) income per share-
basic (c) |
$ |
(0.01 |
) |
|
$ |
0.06 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.08 |
|
Net (loss) income per share-
diluted (c) |
$ |
(0.01 |
) |
|
$ |
0.06 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.08 |
|
(a) |
Other includes intercompany foreign exchange loss, restructuring
consulting fees, other non-recurring charges, and tax expense of
$3.2 million related to the release of our valuation
allowance. |
(b) |
Income tax effects have been
calculated based on the statutory tax rates in effect in the U.S.
and foreign jurisdictions during the quarter. |
(c) |
GAAP and Adjusted basic and
diluted net income (loss) per share are calculated based upon
144,066,263 weighted-average shares of common stock. |
|
Year Ended December 31, 2020 |
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income taxeffects (b) |
|
|
Adjusted |
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
$ |
213.3 |
|
|
$ |
6.1 |
|
|
$ |
1.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
205.4 |
|
Professional services and other |
|
163.7 |
|
|
|
3.8 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
— |
|
|
|
159.0 |
|
Product development and management |
|
83.7 |
|
|
|
8.7 |
|
|
|
1.5 |
|
|
|
— |
|
|
|
— |
|
|
|
73.5 |
|
Depreciation and amortization |
|
40.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40.5 |
|
Total cost of revenue |
|
501.2 |
|
|
|
18.6 |
|
|
|
4.2 |
|
|
|
— |
|
|
|
— |
|
|
|
478.4 |
|
Sales and marketing |
|
165.6 |
|
|
|
8.0 |
|
|
|
3.3 |
|
|
|
— |
|
|
|
— |
|
|
|
154.3 |
|
General and
administrative |
|
167.9 |
|
|
|
42.3 |
|
|
|
2.2 |
|
|
|
24.5 |
|
|
|
— |
|
|
|
98.9 |
|
Operating profit |
|
7.8 |
|
|
|
68.9 |
|
|
|
9.7 |
|
|
|
24.5 |
|
|
|
— |
|
|
|
110.9 |
|
Other expense, net |
|
2.7 |
|
|
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
3.7 |
|
Depreciation and
amortization |
|
51.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51.8 |
|
EBITDA |
$ |
56.9 |
|
|
$ |
68.9 |
|
|
$ |
9.7 |
|
|
$ |
23.5 |
|
|
$ |
— |
|
|
$ |
159.0 |
|
Net (loss) income |
$ |
(4.0 |
) |
|
$ |
68.9 |
|
|
$ |
9.7 |
|
|
$ |
23.5 |
|
|
$ |
(25.0 |
) |
|
$ |
73.1 |
|
Net (loss) income per share-
basic (c) |
$ |
(0.03 |
) |
|
$ |
0.47 |
|
|
$ |
0.07 |
|
|
$ |
0.16 |
|
|
$ |
(0.17 |
) |
|
$ |
0.50 |
|
Net (loss) income per share-
diluted (c) |
$ |
(0.03 |
) |
|
$ |
0.47 |
|
|
$ |
0.07 |
|
|
$ |
0.16 |
|
|
$ |
(0.17 |
) |
|
$ |
0.50 |
|
(a) |
Other includes intercompany foreign exchange loss, restructuring
consulting fees, recovery of duplicate payments and lease
abandonment charges. |
(b) |
Income tax effects have been
calculated based on the statutory tax rates in effect in the U.S.
and foreign jurisdictions during the period. |
(c) |
GAAP and Adjusted basic and
diluted net income per share are calculated based upon 146,774,471
weighted-average shares of common stock. |
|
Year Ended December 31, 2019 |
|
|
Asreported |
|
|
Share-basedcompensation |
|
|
Severancecharges |
|
|
Other (a) |
|
|
Income taxeffects (b) |
|
|
Adjusted |
|
|
(Dollars in millions, except per share data) |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring services |
$ |
201.8 |
|
|
$ |
3.0 |
|
|
$ |
1.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
197.0 |
|
Professional services and other |
|
149.8 |
|
|
|
1.8 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
|
147.4 |
|
Product development and management |
|
67.9 |
|
|
|
3.1 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
64.5 |
|
Depreciation and amortization |
|
36.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36.4 |
|
Total cost of revenue |
|
455.9 |
|
|
|
7.9 |
|
|
|
2.7 |
|
|
|
— |
|
|
|
— |
|
|
|
445.3 |
|
Sales and marketing |
|
150.0 |
|
|
|
5.0 |
|
|
|
2.3 |
|
|
|
— |
|
|
|
— |
|
|
|
142.7 |
|
General and
administrative |
|
145.9 |
|
|
|
24.8 |
|
|
|
1.2 |
|
|
|
16.5 |
|
|
|
— |
|
|
|
103.4 |
|
Operating profit |
|
72.3 |
|
|
|
37.7 |
|
|
|
6.2 |
|
|
|
16.5 |
|
|
|
— |
|
|
|
132.7 |
|
Other expense, net |
|
5.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
5.2 |
|
Depreciation and
amortization |
|
57.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
57.1 |
|
EBITDA |
$ |
123.8 |
|
|
$ |
37.7 |
|
|
$ |
6.2 |
|
|
$ |
16.9 |
|
|
$ |
— |
|
|
$ |
184.6 |
|
Net income |
$ |
78.7 |
|
|
$ |
37.7 |
|
|
$ |
6.2 |
|
|
$ |
(45.7 |
) |
|
$ |
(9.1 |
) |
|
$ |
67.8 |
|
Net income per share- basic
(c) |
$ |
0.55 |
|
|
$ |
0.28 |
|
|
$ |
0.04 |
|
|
$ |
(0.33 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.48 |
|
Net income per share- diluted
(c) |
$ |
0.53 |
|
|
$ |
0.26 |
|
|
$ |
0.04 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.46 |
|
(a) |
Other includes intercompany foreign exchange loss, restructuring
consulting fees, loss on unrecovered duplicate payments, and a tax
benefit of $62.6 million related to the release of our valuation
allowance. |
(b) |
Income tax effects have been
calculated based on the statutory tax rates in effect in the U.S.
and foreign jurisdictions during the period. Prior to June 30,
2019, we did not apply an income tax effect to expenses incurred in
the U.S. due to a full valuation allowance against our deferred tax
assets. |
(c) |
GAAP and Adjusted basic and
diluted net income per share are calculated based upon 142,049,112
and 148,756,592 weighted-average shares of common stock,
respectively. |
Source: Ceridian HCM Holding Inc.
For further information, please contact:
Investor RelationsJeremy JohnsonHead of FP&A and Investor
RelationsCeridian HCM Holding
Inc.1-844-829-9499investors@ceridian.com
Public RelationsTeri MurphyDirector, Corporate
CommunicationsCeridian HCM Holding
Inc.1-647-417-2117teri.murphy@ceridian.com
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