The wide geographic reach of Hurricane Sandy took a small bite out the results for Paychex's second quarter ended November 30. The East Coast Storm significantly impacted about 15 percent of the company's customers and took a half a percent off results for the period, CEO Martin Mucci said during this week's earnings webcast.
"We estimate there was one half of one percent impact on payroll growth," Mucci said. However, he noted he was pleased with how the company's disaster and continuity planning worked and with what he called "solid progress" for the company's business during the most recently ended period.
Paychex reported net income of $147.9 million for the second quarter, an increase of 5.3 percent from $140.4 million in last year's corresponding period. Total revenue was $569.4 million a 4.3-percent rise from $545.7 million a year earlier. Payroll service revenue reached $377 million, up 1.4 percent from $371.7 million. The company said revenue for its online SurePayroll business was up by double digits, but it did not provide specifics. Key measures were up with checks per payroll rising 1.2 percent over a year ago, although was down from a 1.8-percent increase reported in these second quarter of 2012.
Mucci said growth accelerated in the second quarter and that the other measures, the client base and client retention also grew, with the latter near historic highs. Meanwhile, sales force turnover decreased.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
