Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Tuesday April 18
ADP Completes Sale of Claims Services Business
Automatic Data Processing, Inc. (ADP) has completed the previously announced sale of its Claims Services business (CSG) for $975 million in cash, Arthur F. Weinbach, chairman and chief executive officer of ADP announced. On February 8, 2006, ADP had entered into a definitive agreement to sell CSG to Solera, Inc., a provider of technology solutions, shared services and consulting for the insurance and claims industries, and GTCR Golder Rauner, a leading private equity firm.ADP currently anticipates reporting a one-time pretax gain of approximately $600 million, or $480 million after tax, and net cash from the transaction of approximately $760 million, subject to final closing adjustments. Part of the transaction proceeds were received outside of the United States. Under the provisions of the American Jobs Creation Act, ADP anticipates repatriating approximately $250 million of cash which will result in an increase in income tax expense of approximately $10 million. CSG's results of operations are being treated as a discontinued business.
Confirming prior estimates, excluding the one-time gain, the transaction will be dilutive approximately $0.01 - $0.02 per share in fiscal 2006 and $0.07 per share in fiscal 2007. Previously reported fiscal 2006 revenue growth guidance of 10 percent and earnings per share from continuing operations guidance of $1.83 - $1.86 is unchanged.
"We remain confident in achieving results toward the high end of our earnings per share guidance for fiscal 2006 despite the additional tax expense related to the cash repatriation," commented Weinbach.
©2006 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?