Ceridian Reports First Quarter 2019 Results
Summary
We have not reconciled the Adjusted EBITDA ranges for the second quarter of 2019 or the full fiscal year of 2019 to the directly comparable GAAP financial measure 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, share-based compensation expense, changes in foreign currency exchange rates, and other items. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. 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. our inability to attain or to maintain profitability; significant competition for our solutions; our inability to continue to develop or to sell our existing Cloud solutions; our inability to manage our growth effectively; the risk that we may not be able to successfully migrate our Bureau customers to our Cloud solutions or to offset the decline in Bureau revenue with Cloud revenue; the market for enterprise cloud computing develops slower than we expect or declines; efforts to increase use of our Cloud solutions and our other applications may not succeed; we fail to provide enhancements and new features and modifications to our solutions; failure to comply the Federal Trade Commission’s (“FTC”) ongoing consent order regarding data protection; system interruptions or failures, including cyber-security breaches, identity theft, or other disruptions that could compromise our information; our failure to comply with applicable privacy, security and data laws, regulations and standards; changes in regulations governing privacy concerns and laws or other domestic or foreign data protection regulations; we are unable to successfully expand our current offerings into new markets or further penetrate existing markets; we are unable to meet the more complex configuration and integration demands of our large customers; our customers declining to renew their agreements with us or renewing at lower performance fee levels; we fail to manage our technical operations infrastructure; we are unable to maintain necessary third party relationships, and third party software licenses or there are errors in the software we license; our inability to protect our intellectual property rights, proprietary technology, information, processes, and know-how; we fail to keep pace with rapid technological changes and evolving industry standards; changes in laws and regulations related to the Internet or changes in the Internet infrastructure itself; general economic, political and market forces beyond our control; and 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. Adjusted(Unaudited, dollars in millions) Cost of revenue: Recurring services $ 50.7 $ 0.1 $ 0.5 $ — $ 50.1 Professional services and other 32.8 0.1 0.5 — 32.2 Product development and management 13.7 0.1 0.1 — 13.5 Depreciation and amortization 8.7 — — — 8.7 Total cost of revenue 105.9 0.3 1.1 — 104.5 Sales and marketing 29.0 0.4 0.7 — 27.9 General and administrative 25.9 2.0 0.1 0.6 23.2 Operating profit 28.0 2.7 1.9 0.6 33.2 Other (income) expense, net (2.2 ) — — (2.8 ) 0.6 Depreciation and amortization 13.9 — — — 13.9 EBITDA from continuing operations $ 44.1 $ 2.7 $ 1.9 $ (2.2 ) $ 46.5 *Prior period information has been adjusted to reflect the adoption of ASU No.