Paychex retains strong financial position despite Covid-19 pandemic

By Devika Patel

Knoxville, Tenn., July 7 – Paychex, Inc. has a strong financial position and has begun emerging from the Covid-19 pandemic as a stronger company.

“Our financial position, which we’re particularly proud of, it remains strong,” senior vice president, treasurer and chief financial officer Efrain Rivera said on the company’s fourth quarter and year ended May 31 earnings conference call on Tuesday.

“It really highlights the strength of the company,” Rivera said.

The company was still able to serve its clients through the Covid-19 pandemic.

“Fiscal 2020 was on track to be a solid year, reflecting growth across our business,” president and chief executive officer Martin Mucci stated in a press release.

“As we began the fourth quarter, Covid-19 caused worldwide business shutdowns directly affecting small and medium-sized businesses, which impacted our business sales and financial performance.

“Since the end of April, we have seen sequential improvement in our key business metrics across our lines of business,” Mucci stated.

Improvements continued into June.

“Over the past month, we have continued to experience steady improvements across all of our key metrics we are tracking on a weekly basis,” Mucci said on the call.

“The Covid-19 pandemic has been a challenge to our business, however this challenge confirmed that the investments we have made in the recent past were the right investments.

“Covid-19 accelerated many workplace trends and we have had the right solutions in place to help our clients adapt to their new, unexpected environment.”

Management believes that the company’s performance through the pandemic is a testament to its strength.

“We were well prepared to service our clients in this unprecedented environment due to our investments in technology and our online, SaaS service offerings,” Mucci stated in the release.

Cash and cash equivalents were $905.2 million as of May 31, 2020, compared to $673.6 million as of May 31, 2019.

Net long-term borrowings were $796.8 million as of May 31, 2020, compared to $796.4 million as of May 31, 2019.

Paychex is a provider of payroll, human resource and benefits outsourcing services for small- to medium-sized businesses. It is based in Rochester, N.Y.

© 2015 Prospect News.
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