CDK Global has announced the financial results for its fiscal 2019 first quarter ended Sept. 30.
Effective July 1, CDK has adopted ASU 2014-09 “Revenue from Contracts with Customers” and related ASUs (“ASC 606”), using the modified retrospective transition approach. CDK stated it will not recast historical information and will report financial results in fiscal 2019 under both standards for the transition year for comparability purposes.
ASC 606 revenues of $554.5 million.
“The first quarter was a solid start to fiscal 2019 as we begin to see the results from our growth initiatives,” said CEOBrian MacDonald. “We continue to see strong sales results across new site wins and strategic layered applications, and we’re especially pleased by the initial results of our recently completed acquisition of ELEAD1ONE. Accelerating growth in our core business remains our top priority.”
Growth in revenues and earnings before income taxes remained unchanged by foreign exchange rates.
The GAAP effective tax rate for the first quarter of fiscal 2019 was 27.8 percent under both ASC 606 and ASC 605, compared to 30.6 percent in last year’s first quarter. The adjusted effective tax rate for the first quarter of fiscal 2019 was 25.9 percent under both ASC 606 and ASC 605, compared to 34.2 percent in last year’s first quarter.
