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Insperity, Inc. has reported results for the fourth quarter and year ended Dec. 31, 2011

Insperity, Inc. has reported results for the fourth quarter and year ended Dec. 31, 2011

Insperity, Inc. a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the fourth quarter and year ended Dec. 31, 2011. For the fourth quarter, the company reported net income of $10.8 million, a 39.2% increase over the $7.8 million earned in the 2010 period. Diluted earnings per share increased 40.0% to $0.42 from $0.30 in the 2010 period.

For the year ended Dec. 31, 2011, the company reported net income of $30.5 million, a 35.8% increase over the $22.4 million earned in 2010. Diluted earnings per share increased 34.9% to $1.16, compared to $0.86 in 2010.

“2011 was an outstanding year both financially and operationally for Insperity,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We exceeded our financial objectives and successfully implemented a strategic business transformation, which we expect to be the foundation for dynamic growth and profitability in the years ahead.”

Fourth Quarter Results

Revenues for the fourth quarter of 2011 increased 13.7% over the 2010 period due to a 9.7% increase in the average number of worksite employees paid per month and a 3.6% increase in revenues per worksite employee per month.

Gross profit increased 11.3% to $89.9 million compared to the fourth quarter of 2010 and included better than expected results from workers’ compensation and payroll taxes, including a $2.5 million payroll-related tax credit, offset by higher health insurance costs. The average gross profit per worksite employee per month increased $4, or 1.7%, to $246 in the fourth quarter of 2011 from $242 in the 2010 period.

Operating expenses increased 7.5% to $73.3 million compared to $68.2 million in the fourth quarter of 2010, and included $2.1 million associated with the company’s rebranding initiative. Operating expenses per worksite employee per month decreased $4, or 2.0%, to $200 in the fourth quarter of 2011 from $204 in the 2010 period.

Year End Results

Revenues in 2011 were $2.0 billion, a 14.9% increase over 2010. Gross profit for the year ended Dec. 31, 2011, increased 17.8% to $351.8 million. The average gross profit per worksite employee per month was $251 compared to $232 in 2010.

Operating expenses increased 12.6% to $294.5 million compared to 2010, and included rebranding costs of approximately $11.8 million, and $9.2 million of expenses associated with acquisitions made in mid 2010 and early 2011. Operating expenses per worksite employee per month increased 2.9% to $210 in 2011 from $204 in 2010. The resulting operating income for the year ended Dec. 31, 2011, was $57.3 million, a 54.7% increase over 2010.

Other expense includes the previously reported non-operational expenses of $4.4 million related to the exchange of a corporate asset and $3.1 million related to the settlement of a dispute with the Employment Development Department of the State of California.

Adjusted EBITDA increased 34.6% over 2010 to $82.2 million. The company returned $40.8 million to stockholders, including dividends of $15.7 million and the repurchase of just over one million shares at a cost of $25.1 million. Working capital at Dec. 31, 2011, was $126.6 million.

“Our 2011 earnings per share, excluding the non-operational items, increased 54.7% over 2010 to $1.33,” said Douglas S. Sharp, senior vice-president of finance, chief financial officer and treasurer. “We are pleased with these results in a year that included our corporate rebranding and investments in our adjacent businesses.”

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