The statement followed the report that the company had $515.3 million in net income for fiscal 2011, compared to $477 million the prior year. Revenue for the most recently ended 12 months was $2.08 billion, compared to $2.0 billion a year earlier. However, 2011 ended on a weaker note as net income was $118.9 million, a third percent increase over $115.5 million in the prior year's corresponding period. Fourth quarter revenue of $522.7 million was 5-percent higher than the prior year's $496.2 million.

However, payroll revenue showed a stronger performance than the company average. While payroll revenue was up only 2 percent for the year, it grew by 5 percent in the final period.

Morphy says the company implemented a 3-percent price increase last year, which had received little pushback from clients. A year ago, it had also implemented a 3-percent increase, and with discounting had achieved about a 2.5-percent effective increase.

CEO Martin Mucci said sales to new business had been flat, so much of the increase had come from taking market share from competitors, although the head-on competition with Automatic Data Processing was about flat. Checks per client and client retention had all improved.  He said the existing client base was strong and and that new business formation was flat, not down.

Mucci was also asked about the short term of Rebecca Bernson, who stayed five days as SVP of sales. She was an ADP veteran. "I thought I had the right person. I did not. I dealt with it quickly," he said.