[July 31, 2018] |
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Paycom Software, Inc. Reports Second Quarter 2018 Results
Paycom Software, Inc. ("Paycom") (NYSE: PAYC), a leading provider of
comprehensive, cloud-based human capital management software, today
announced its financial results for the quarter ended June 30, 2018.
"Paycom continued its momentum, driving strong revenue and profits while
also returning solid value to our stockholders with the repurchase of
more than 400,000 shares in the second quarter," said Paycom's founder
and CEO, Chad Richison. "We expanded our sales reach by opening two new
offices and also completed construction of a fourth building at our
campus headquarters in Oklahoma City."
Financial Highlights for the Second Quarter of
2018
Total Revenues of $128.8 million represented a 31% increase
compared to total revenues of $98.2 million in the same period last
year. Recurring revenues of $126.6 million increased 31% from the
comparable prior year period and constituted 98% of total revenues.
GAAP Net Income was $35.7 million, or $0.61 per diluted share,
compared to GAAP net income of $20.0 million, or $0.34 per diluted
share, in the same period last year, as adjusted1.
Adjusted EBITDA2 was $53.5 million, compared to
$36.6 million in the same period last year, as adjusted1.
Non-GAAP Net Income2 was $34.8 million,
or $0.59 per diluted share, compared to $20.5 million, or $0.35 per
diluted share, in the same period last year, as adjusted1.
Cash and Cash Equivalents were $54.6 million as of June 30, 2018.
Total Debt was $35.3 million as of June 30, 2018.
1 Effective January 1, 2018, we adopted the
requirements of Accounting Standards Update ("ASU") No. 2014-09,
"Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). All
prior period amounts and disclosures have been recast to comply with the
new standards, as indicated by the "as adjusted" footnote.
2 Adjusted EBITDA and non-GAAP net income are non-GAAP
financial measures. Please see the discussion below under the heading
"Use of Non-GAAP Financial Information" and the reconciliations at the
end of this release for additional information concerning these non-GAAP
financial measures.
Financial Outlook
Paycom provides the following expected financial guidance for the
quarter ending September 30, 2018 and the year ending December 31, 2018.
Please note that this guidance reflects the January 1, 2018 adoption of
ASU 2014-09:
Quarter Ending September 30, 2018
Total Revenues in the range of $129.0 million to $131.0 million.
Adjusted EBITDA in the range of $45.5 million to $47.5 million.
Year Ending December 31, 2018
Total Revenues in the range of $554.0 million to $556.0 million.
Adjusted EBITDA in the range of $231.0 million to $233.0 million.
We have not reconciled the Adjusted EBITDA ranges for the quarter ending
September 30, 2018 or the year ending December 31, 2018 to net income
because applicable information for future periods, on which this
reconciliation would be based, is not readily available due to
uncertainty regarding, and the potential variability of, depreciation
and amortization, interest expense, taxes, non-cash stock-based
compensation expense, change in fair value of our interest rate swap and
other items. Accordingly, a reconciliation of these Adjusted EBITDA
ranges to net income is not available at this time without unreasonable
effort.
Use of Non-GAAP Financial Information
To supplement our financial information presented in accordance with
generally accepted accounting principles in the United States ("GAAP"),
we consider and have included certain non-GAAP financial measures in
this press release, including Adjusted EBITDA and non-GAAP net income.
Management uses Adjusted EBITDA and non-GAAP net income as supplemental
measures to review and assess the performance of our core business
operations and for planning purposes. We define (i) Adjusted EBITDA as
net income plus interest expense, taxes, depreciation and amortization,
non-cash stock-based compensation expense, certain transaction expenses
that are not core to our operations (if any) and the change in fair
value of our interest rate swap and (ii) non-GAAP net income as net
income plus non-cash stock-based compensation expense, certain
transaction expenses that are not core to our operations (if any) and
the change in fair value of our interest rate swap, all of which are
adjusted for the effect of income taxes. Adjusted EBITDA and non-GAAP
net income are metrics that provide investors with greater transparency
to the information used by management in its financial and operational
decision-making. We believe these metrics are useful to investors
because they facilitate comparisons of our core business operations
across periods on a consistent basis, as well as comparisons with the
results of peer companies, many of which use similar non-GAAP financial
measures to supplement results under GAAP. In addition, Adjusted EBITDA
is a measure that provides useful information to management about the
amount of cash available for reinvestment in our business, repurchasing
common stock and other purposes. Management believes that the non-GAAP
measures presented in this press release, when viewed in combination
with our results prepared in accordance with GAAP, provide a more
complete understanding of the factors and trends affecting our business
and performance.
Adjusted EBITDA and non-GAAP net income are not measures of financial
performance under GAAP and should not be considered a substitute for net
income, which we consider to be the most directly comparable GAAP
measure. Adjusted EBITDA and non-GAAP net income have limitations as
analytical tools, and when assessing our operating performance, you
should not consider Adjusted EBITDA or non-GAAP net income in isolation,
nor as a substitute for net income or other consolidated statements of
income data prepared in accordance with GAAP. Adjusted EBITDA and
non-GAAP net income may not be comparable to similar titled measures of
other companies, and other companies may not calculate such measures in
the same manner as we do.
Conference Call Details:
In conjunction with this announcement, Paycom will host a conference
call today, July 31, 2018, at 5:00 p.m. Eastern time to discuss its
financial results. To access this call, dial (866) 362-4443 (domestic)
or (412) 317-5229 (international) and announce Paycom as the conference
name to the operator. A live webcast as well as the replay of the
conference call will be available on the Investor Relations page of
Paycom's website at investors.paycom.com.
A replay of this conference call can also be accessed by dialing (877)
344-7529 (domestic) or (412) 317-0088 (international) until August 7,
2018. The replay passcode is 10122285.
About Paycom
As a leader in payroll and HR technology, Oklahoma City-based Paycom
redefines the human capital management industry by allowing companies to
effectively navigate a rapidly changing business environment. Its
cloud-based software solution is based on a core system of record
maintained in a single database for all human capital management
functions, providing the functionality that businesses need to manage
the complete employment lifecycle, from recruitment to retirement.
Paycom has the ability to serve businesses of all sizes and in every
industry. As one of the leading human capital management providers,
Paycom serves clients in all 50 states from offices across the country.
Forward-Looking Statements
Certain statements in this press release are, and certain statements on
the related teleconference call may be, forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are any statements that refer to our
estimated or anticipated results, other non-historical facts or future
events and include, but are not limited to, statements regarding our
business strategy; anticipated future operating results and operating
expenses, cash flows, capital resources, dividends and liquidity;
trends, opportunities and risks affecting our business, industry and
financial results; future expansion or growth plans and potential for
future growth; our ability to attract new clients to purchase our
solution; our ability to retain clients and induce them to purchase
additional applications; our ability to accurately forecast future
revenues and appropriately plan our expenses; market acceptance of our
solution and applications; our expectations regarding future revenues
generated by certain applications; our ability to attract and retain
qualified personnel; the impact of future regulatory, judicial, or
legislative changes; how certain factors affecting our performance
correlate to improvement or deterioration in the labor market; our plan
to open additional sales offices and our ability to effectively execute
such plan; the sufficiency of our existing cash and cash equivalents to
meet our working capital and capital expenditure needs over the next 12
months; our ability to relocate our Texas operations to a new facility
within an expected timeframe; our plans regarding our capital
expenditures and investment activity as our business grows, including
with respect to our new Texas operations facility; the expected impact
of the Tax Cuts and Jobs Act of 2017 and our expected income tax rate
for future periods; our plans to purchase shares of our common stock
through a stock repurchase plan; and the impact on our consolidated
financial statements of new accounting pronouncements. In addition,
forward-looking statements also consist of statements involving trend
analyses and statements including such words as "anticipate," "believe,"
"become," "continue," "could," "expect," "intend," "may," "plan,"
"potential," "should," "would," "will" and similar expressions or the
negative of such terms or other comparable terminology. These
forward-looking statements speak only as of the date hereof and are
subject to business and economic risks. As such, our actual results
could differ materially from those set forth in the forward-looking
statements as a result of the factors discussed in our filings with the
Securities and Exchange Commission, including but not limited to those
discussed in our Annual Report on Form 10-K for the year ended December
31, 2017. We do not undertake any obligation to update or revise the
forward-looking statements to reflect events or circumstances that exist
after the date on which such statements were made, except to the extent
required by law.
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Paycom Software, Inc.
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Consolidated Balance Sheets
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(in thousands, except share amounts)
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(unaudited)
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December 31, 2017
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June 30, 2018
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*As Adjusted
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Assets
|
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Current assets:
|
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Cash and cash equivalents
|
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$
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54,630
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$
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46,077
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Accounts receivable
|
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2,414
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|
1,576
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Prepaid expenses
|
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8,025
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|
4,982
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Inventory
|
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|
|
477
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|
979
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Income tax receivable
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5,602
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7,047
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Derivative asset
|
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|
57
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-
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Deferred contract costs
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30,540
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|
26,403
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Current assets before funds held for clients
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101,745
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87,064
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Funds held for clients
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900,287
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1,089,201
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Total current assets
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1,002,032
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1,176,265
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Property and equipment, net
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165,370
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147,705
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Deposits and other assets
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1,609
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|
1,456
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Goodwill
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51,889
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51,889
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Intangible assets, net
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852
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|
958
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Long-term derivative asset
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435
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-
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Long-term deferred contract costs
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196,778
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171,865
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Total assets
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$
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1,418,965
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$
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1,550,138
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Liabilities and Stockholders' Equity
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Current liabilities:
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Accounts payable
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$
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4,995
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$
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6,490
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Accrued commissions and bonuses
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4,441
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9,585
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Accrued payroll and vacation
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8,895
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|
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|
7,015
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Deferred revenue
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7,867
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6,982
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Current portion of long-term debt
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1,775
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|
888
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Accrued expenses and other current liabilities
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18,796
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19,991
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Current liabilities before client funds obligation
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46,769
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|
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|
|
50,951
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Client funds obligation
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900,287
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|
|
|
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1,089,201
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Total current liabilities
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|
|
947,056
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|
1,140,152
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Deferred income tax liabilities, net
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|
|
59,363
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|
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|
|
49,129
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Long-term derivative liability
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-
|
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|
|
|
554
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Long-term deferred revenue
|
|
|
|
49,322
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|
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|
44,642
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Net long-term debt, less current portion
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33,486
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|
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34,414
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Total long-term liabilities
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142,171
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128,739
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Commitments and contingencies
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Stockholders' equity:
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Common stock, $0.01 par value (100,000,000 shares authorized,
60,638,672 and 60,149,411 shares issued at June 30, 2018 and
December 31, 2017, respectively; 57,701,124 and 57,788,573 shares
outstanding at June 30, 2018 and December 31, 2017, respectively)
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606
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601
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Additional paid-in capital
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193,288
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161,809
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Retained earnings
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335,407
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258,525
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Treasury stock, at cost (2,937,548 and 2,360,838 shares at June
30, 2018 and December 31, 2017, respectively)
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(199,563
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)
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(139,688
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)
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Total stockholders' equity
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329,738
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281,247
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Total liabilities and stockholders' equity
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$
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1,418,965
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$
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1,550,138
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* Prior year amounts have been recast to reflect the adoption of ASU
2014-09.
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Paycom Software, Inc.
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Consolidated Statements of Income
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(in thousands, except per share and share amounts)
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(unaudited)
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Three Months Ended June 30,
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Six Months Ended June 30,
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2017
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2017
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2018
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*As Adjusted
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2018
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*As Adjusted
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Revenues
|
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Recurring
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$
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126,609
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$
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96,351
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$
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278,494
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$
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214,265
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Implementation and other
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2,191
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1,876
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4,222
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|
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3,470
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Total revenues
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128,800
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98,227
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282,716
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217,735
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Cost of revenues
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Operating expenses
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17,677
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15,609
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38,245
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|
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30,695
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Depreciation and amortization
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3,254
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|
|
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2,267
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|
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|
6,291
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|
|
|
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4,327
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Total cost of revenues
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20,931
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17,876
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44,536
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35,022
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Administrative expenses
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Sales and marketing
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31,647
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27,430
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63,999
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|
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|
|
53,009
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Research and development
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10,731
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|
|
|
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8,095
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|
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21,981
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|
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|
|
14,892
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General and administrative
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|
|
|
18,995
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23,594
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|
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51,652
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|
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38,844
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Depreciation and amortization
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3,459
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|
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2,440
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|
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6,491
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|
|
|
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4,666
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Total administrative expenses
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64,832
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61,559
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144,123
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111,411
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Total operating expenses
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85,763
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|
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79,435
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188,659
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|
|
|
|
146,433
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Operating income
|
|
|
|
43,037
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|
|
|
|
18,792
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|
|
|
|
|
94,057
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|
|
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|
71,302
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Interest expense
|
|
|
|
(34
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)
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|
|
(281
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)
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|
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(34
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)
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(538
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)
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Other income, net
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|
515
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|
|
149
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|
1,545
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|
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|
|
244
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Income before income taxes
|
|
|
|
43,518
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|
|
|
|
18,660
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|
|
|
|
|
95,568
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|
|
|
|
71,008
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Provision for income taxes
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|
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7,796
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|
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|
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(1,356
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)
|
|
|
|
|
18,686
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|
|
|
|
17,298
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Net income
|
|
|
$
|
35,722
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|
|
|
$
|
20,016
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|
|
|
|
$
|
76,882
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|
|
|
$
|
53,710
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|
Earnings per share, basic
|
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|
$
|
0.62
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|
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$
|
0.34
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|
|
|
|
$
|
1.33
|
|
|
|
$
|
0.93
|
|
Earnings per share, diluted
|
|
|
$
|
0.61
|
|
|
|
$
|
0.34
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|
|
|
|
$
|
1.31
|
|
|
|
$
|
0.91
|
|
Weighted average shares outstanding:
|
|
|
|
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|
|
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|
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Basic
|
|
|
|
57,837,312
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|
|
|
|
57,898,914
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|
|
|
|
|
57,815,290
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|
|
|
|
57,623,107
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Diluted
|
|
|
|
58,720,785
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|
|
|
58,816,442
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|
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|
|
58,766,903
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|
|
|
|
58,817,181
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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* Prior year amounts have been recast to reflect the adoption of ASU
2014-09.
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Paycom Software, Inc.
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Consolidated Statements of Cash Flows
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(in thousands)
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(unaudited)
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
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|
2018
|
|
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*As Adjusted
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
|
$
|
76,882
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|
|
|
$
|
53,710
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|
Adjustments to reconcile net income to net cash provided by
operating activities:
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|
|
|
|
|
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Depreciation and amortization
|
|
|
|
12,782
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|
|
|
|
8,993
|
|
Amortization of debt issuance costs
|
|
|
|
15
|
|
|
|
|
59
|
|
Stock-based compensation expense
|
|
|
|
26,921
|
|
|
|
|
16,306
|
|
Cash paid for derivative settlement
|
|
|
|
(131
|
)
|
|
|
|
-
|
|
Gain on derivative
|
|
|
|
(1,010
|
)
|
|
|
|
-
|
|
Deferred income taxes, net
|
|
|
|
10,234
|
|
|
|
|
2,913
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(838
|
)
|
|
|
|
(464
|
)
|
Prepaid expenses
|
|
|
|
(3,043
|
)
|
|
|
|
(1,262
|
)
|
Inventory
|
|
|
|
57
|
|
|
|
|
434
|
|
Deposits and other assets
|
|
|
|
(153
|
)
|
|
|
|
(111
|
)
|
Deferred contract costs
|
|
|
|
(27,487
|
)
|
|
|
|
(22,330
|
)
|
Accounts payable
|
|
|
|
593
|
|
|
|
|
(319
|
)
|
Income taxes, net
|
|
|
|
1,445
|
|
|
|
|
(2,855
|
)
|
Accrued commissions and bonuses
|
|
|
|
(5,144
|
)
|
|
|
|
(2,767
|
)
|
Accrued payroll and vacation
|
|
|
|
1,880
|
|
|
|
|
1,088
|
|
Deferred revenue
|
|
|
|
5,565
|
|
|
|
|
5,293
|
|
Accrued expenses and other current liabilities
|
|
|
|
1,789
|
|
|
|
|
(3,395
|
)
|
Net cash provided by operating activities
|
|
|
|
100,357
|
|
|
|
|
55,293
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Net change in funds held for clients
|
|
|
|
188,914
|
|
|
|
|
71,229
|
|
Purchases of property and equipment
|
|
|
|
(31,873
|
)
|
|
|
|
(21,909
|
)
|
Net cash provided by investing activities
|
|
|
|
157,041
|
|
|
|
|
49,320
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
|
-
|
|
|
|
|
5,440
|
|
Repurchases of common stock
|
|
|
|
(41,689
|
)
|
|
|
|
(15,187
|
)
|
Withholding taxes paid related to net share settlement
|
|
|
|
(18,186
|
)
|
|
|
|
(14,973
|
)
|
Principal payments on long-term debt
|
|
|
|
-
|
|
|
|
|
(562
|
)
|
Net change in client funds obligation
|
|
|
|
(188,914
|
)
|
|
|
|
(71,229
|
)
|
Payment of debt issuance costs
|
|
|
|
(56
|
)
|
|
|
|
(143
|
)
|
Net cash used in financing activities
|
|
|
|
(248,845
|
)
|
|
|
|
(96,654
|
)
|
Increase in cash and cash equivalents
|
|
|
|
8,553
|
|
|
|
|
7,959
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
46,077
|
|
|
|
|
60,158
|
|
End of period
|
|
|
$
|
54,630
|
|
|
|
$
|
68,117
|
|
|
|
|
|
|
|
|
|
|
|
|
* Prior year amounts have been recast to reflect the adoption of ASU
2014-09.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paycom Software, Inc.
|
Reconciliations of GAAP to non-GAAP Financial Measures
|
(in thousands, except share and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
*As Adjusted
|
|
|
|
2018
|
|
|
*As Adjusted
|
Net income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
35,722
|
|
|
|
$
|
20,016
|
|
|
|
|
$
|
76,882
|
|
|
|
$
|
53,710
|
|
Interest expense
|
|
|
|
34
|
|
|
|
|
281
|
|
|
|
|
|
34
|
|
|
|
|
538
|
|
Provision for income taxes
|
|
|
|
7,796
|
|
|
|
|
(1,356
|
)
|
|
|
|
|
18,686
|
|
|
|
|
17,298
|
|
Depreciation and amortization
|
|
|
|
6,713
|
|
|
|
|
4,707
|
|
|
|
|
|
12,782
|
|
|
|
|
8,993
|
|
EBITDA
|
|
|
|
50,265
|
|
|
|
|
23,648
|
|
|
|
|
|
108,384
|
|
|
|
|
80,539
|
|
Non-cash stock-based compensation expense
|
|
|
|
3,538
|
|
|
|
|
12,903
|
|
|
|
|
|
26,976
|
|
|
|
|
16,309
|
|
Change in fair value of interest rate swap
|
|
|
|
(324
|
)
|
|
|
|
-
|
|
|
|
|
|
(1,141
|
)
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
|
$
|
53,479
|
|
|
|
$
|
36,551
|
|
|
|
|
$
|
134,219
|
|
|
|
$
|
96,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
*As Adjusted
|
|
|
|
2018
|
|
|
*As Adjusted
|
Net income to non-GAAP net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
35,722
|
|
|
|
$
|
20,016
|
|
|
|
|
$
|
76,882
|
|
|
|
$
|
53,710
|
|
Non-cash stock-based compensation expense
|
|
|
|
3,538
|
|
|
|
|
12,903
|
|
|
|
|
|
26,976
|
|
|
|
|
16,309
|
|
Change in fair value of interest rate swap
|
|
|
|
(324
|
)
|
|
|
|
-
|
|
|
|
|
|
(1,141
|
)
|
|
|
|
-
|
|
Income tax effect on non-GAAP adjustment
|
|
|
|
(4,126
|
)
|
|
|
|
(12,434
|
)
|
|
|
|
|
(12,139
|
)
|
|
|
|
(14,059
|
)
|
Non-GAAP net income
|
|
|
$
|
34,810
|
|
|
|
$
|
20,485
|
|
|
|
|
$
|
90,578
|
|
|
|
$
|
55,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
57,837,312
|
|
|
|
|
57,898,914
|
|
|
|
|
|
57,815,290
|
|
|
|
|
57,623,107
|
|
Diluted
|
|
|
|
58,720,785
|
|
|
|
|
58,816,442
|
|
|
|
|
|
58,766,903
|
|
|
|
|
58,817,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic
|
|
|
$
|
0.62
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
1.33
|
|
|
|
$
|
0.93
|
|
Earnings per share diluted
|
|
|
$
|
0.61
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
1.31
|
|
|
|
$
|
0.91
|
|
Non-GAAP net income per share, basic
|
|
|
$
|
0.60
|
|
|
|
$
|
0.35
|
|
|
|
|
$
|
1.57
|
|
|
|
$
|
0.97
|
|
Non-GAAP net income per share, diluted
|
|
|
$
|
0.59
|
|
|
|
$
|
0.35
|
|
|
|
|
$
|
1.54
|
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
*As Adjusted
|
|
|
|
2018
|
|
|
*As Adjusted
|
Earnings per share to non-GAAP net income per share, basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic
|
|
|
$
|
0.62
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
1.33
|
|
|
|
$
|
0.93
|
|
Non-cash stock-based compensation expense
|
|
|
|
0.06
|
|
|
|
|
0.22
|
|
|
|
|
|
0.47
|
|
|
|
|
0.28
|
|
Change in fair value of interest rate swap
|
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
-
|
|
Income tax effect on non-GAAP adjustment
|
|
|
|
(0.07
|
)
|
|
|
|
(0.21
|
)
|
|
|
|
|
(0.21
|
)
|
|
|
|
(0.24
|
)
|
Non-GAAP net income per share, basic
|
|
|
$
|
0.60
|
|
|
|
$
|
0.35
|
|
|
|
|
$
|
1.57
|
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Prior year amounts have been recast to reflect the adoption of ASU
2014-09.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
*As Adjusted
|
|
|
|
2018
|
|
|
*As Adjusted
|
Earnings per share to non-GAAP net income per share, diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, diluted
|
|
|
$
|
0.61
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
1.31
|
|
|
|
$
|
0.91
|
|
Non-cash stock-based compensation expense
|
|
|
|
0.06
|
|
|
|
|
0.22
|
|
|
|
|
|
0.46
|
|
|
|
|
0.28
|
|
Change in fair value of interest rate swap
|
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
-
|
|
Income tax effect on non-GAAP adjustment
|
|
|
|
(0.07
|
)
|
|
|
|
(0.21
|
)
|
|
|
|
|
(0.21
|
)
|
|
|
|
(0.24
|
)
|
Non-GAAP net income per share, diluted
|
|
|
$
|
0.59
|
|
|
|
$
|
0.35
|
|
|
|
|
$
|
1.54
|
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
2018
|
|
|
2017
|
Adjusted gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
128,800
|
|
|
|
$
|
98,227
|
|
|
|
|
$
|
282,716
|
|
|
|
$
|
217,735
|
|
Less: Total cost of revenues
|
|
|
|
(20,931
|
)
|
|
|
|
(17,876
|
)
|
|
|
|
|
(44,536
|
)
|
|
|
|
(35,022
|
)
|
Total gross profit
|
|
|
|
107,869
|
|
|
|
|
80,351
|
|
|
|
|
|
238,180
|
|
|
|
|
182,713
|
|
Plus: Non-cash stock-based compensation expense
|
|
|
|
391
|
|
|
|
|
1,220
|
|
|
|
|
|
3,259
|
|
|
|
|
1,711
|
|
Total adjusted gross profit
|
|
|
$
|
108,260
|
|
|
|
$
|
81,571
|
|
|
|
|
$
|
241,439
|
|
|
|
$
|
184,424
|
|
Total gross profit %
|
|
|
|
83.7
|
%
|
|
|
|
81.8
|
%
|
|
|
|
|
84.2
|
%
|
|
|
|
83.9
|
%
|
Total adjusted gross profit %
|
|
|
|
84.1
|
%
|
|
|
|
83.0
|
%
|
|
|
|
|
85.4
|
%
|
|
|
|
84.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
*As Adjusted
|
|
|
|
2018
|
|
|
*As Adjusted
|
Adjusted sales and marketing expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses
|
|
|
$
|
31,647
|
|
|
|
$
|
27,430
|
|
|
|
|
$
|
63,999
|
|
|
|
$
|
53,009
|
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(1,449
|
)
|
|
|
|
(1,205
|
)
|
|
|
|
|
(3,356
|
)
|
|
|
|
(2,015
|
)
|
Total adjusted sales and marketing expenses
|
|
|
$
|
30,198
|
|
|
|
$
|
26,225
|
|
|
|
|
$
|
60,643
|
|
|
|
$
|
50,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
128,800
|
|
|
|
$
|
98,227
|
|
|
|
|
$
|
282,716
|
|
|
|
$
|
217,735
|
|
Total adjusted sales and marketing expenses as a % of revenues
|
|
|
|
23.4
|
%
|
|
|
|
26.7
|
%
|
|
|
|
|
21.5
|
%
|
|
|
|
23.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
*As Adjusted
|
|
|
|
2018
|
|
|
*As Adjusted
|
Adjusted administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
$
|
64,832
|
|
|
|
$
|
61,559
|
|
|
|
|
$
|
144,123
|
|
|
|
$
|
111,411
|
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(3,147
|
)
|
|
|
|
(11,683
|
)
|
|
|
|
|
(23,717
|
)
|
|
|
|
(14,598
|
)
|
Total adjusted administrative expenses
|
|
|
$
|
61,685
|
|
|
|
$
|
49,876
|
|
|
|
|
$
|
120,406
|
|
|
|
$
|
96,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
128,800
|
|
|
|
$
|
98,227
|
|
|
|
|
$
|
282,716
|
|
|
|
$
|
217,735
|
|
Total adjusted administrative expenses as a % of revenues
|
|
|
|
47.9
|
%
|
|
|
|
50.8
|
%
|
|
|
|
|
42.6
|
%
|
|
|
|
44.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Prior year amounts have been recast to reflect the adoption of ASU
2014-09.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
2018
|
|
|
2017
|
Adjusted research and development expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
|
$
|
10,731
|
|
|
|
$
|
8,095
|
|
|
|
|
$
|
21,981
|
|
|
|
$
|
14,892
|
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(267
|
)
|
|
|
|
(621
|
)
|
|
|
|
|
(2,514
|
)
|
|
|
|
(780
|
)
|
Total adjusted research and development expenses
|
|
|
$
|
10,464
|
|
|
|
$
|
7,474
|
|
|
|
|
$
|
19,467
|
|
|
|
$
|
14,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
128,800
|
|
|
|
$
|
98,227
|
|
|
|
|
$
|
282,716
|
|
|
|
$
|
217,735
|
|
Total adjusted research and development expenses as a % of revenues
|
|
|
|
8.1
|
%
|
|
|
|
7.6
|
%
|
|
|
|
|
6.9
|
%
|
|
|
|
6.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
2018
|
|
|
2017
|
Total research and development costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized research and development costs
|
|
|
$
|
4,570
|
|
|
|
$
|
3,507
|
|
|
|
|
$
|
11,208
|
|
|
|
$
|
6,383
|
|
Research and development expenses
|
|
|
|
10,731
|
|
|
|
|
8,095
|
|
|
|
|
|
21,981
|
|
|
|
|
14,892
|
|
Total research and development costs
|
|
|
$
|
15,301
|
|
|
|
$
|
11,602
|
|
|
|
|
$
|
33,189
|
|
|
|
$
|
21,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
128,800
|
|
|
|
$
|
98,227
|
|
|
|
|
$
|
282,716
|
|
|
|
$
|
217,735
|
|
Total research and development costs as a % of revenues
|
|
|
|
11.9
|
%
|
|
|
|
11.8
|
%
|
|
|
|
|
11.7
|
%
|
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjusted research and development costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total research and development costs
|
|
|
$
|
15,301
|
|
|
|
$
|
11,602
|
|
|
|
|
$
|
33,189
|
|
|
|
$
|
21,275
|
|
Less: Capitalized non-cash stock-based compensation
|
|
|
|
(406
|
)
|
|
|
|
(968
|
)
|
|
|
|
|
(2,945
|
)
|
|
|
|
(1,317
|
)
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(267
|
)
|
|
|
|
(621
|
)
|
|
|
|
|
(2,514
|
)
|
|
|
|
(780
|
)
|
Total adjusted research and development costs
|
|
|
$
|
14,628
|
|
|
|
$
|
10,013
|
|
|
|
|
$
|
27,730
|
|
|
|
$
|
19,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
128,800
|
|
|
|
$
|
98,227
|
|
|
|
|
$
|
282,716
|
|
|
|
$
|
217,735
|
|
Total adjusted research and development costs as a % of revenues
|
|
|
|
11.4
|
%
|
|
|
|
10.2
|
%
|
|
|
|
|
9.8
|
%
|
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paycom Software, Inc.
|
Breakout of Non-Cash Stock-Based Compensation Expense
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
2017
|
|
|
2018
|
|
|
*As Adjusted
|
|
|
|
2018
|
|
|
*As Adjusted
|
Non-cash stock-based compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
391
|
|
|
$
|
1,220
|
|
|
|
$
|
3,259
|
|
|
$
|
1,711
|
Sales and marketing
|
|
|
1,449
|
|
|
|
1,205
|
|
|
|
|
3,356
|
|
|
|
2,015
|
Research and development
|
|
|
267
|
|
|
|
621
|
|
|
|
|
2,514
|
|
|
|
780
|
General and administrative
|
|
|
1,431
|
|
|
|
9,857
|
|
|
|
|
17,847
|
|
|
|
11,803
|
Total non-cash stock-based compensation expense
|
|
$
|
3,538
|
|
|
$
|
12,903
|
|
|
|
$
|
26,976
|
|
|
$
|
16,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Prior year amounts have been recast to reflect the adoption of ASU
2014-09.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180731005855/en/
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