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Insperity Increases Its EBITDA

Insperity Increases Its EBITDA

Gross profit and operating income per worksite employee per month reach historic highs of $282 and $63, respectively

Insperity, Inc.a leading provider of human resources and business performance solutions for America’s best businesses, today reported first quarter net income of $13.9 million, a 58.0% increase over the $8.8 million earned in the 2011 period. Diluted earnings per share increased 63.6% to $0.54 from $0.33 in the 2011 period.

“These are outstanding results, particularly in light of a weakening labor market and the amount of change involved in implementing our new growth strategy,” said Paul J. Sarvadi Insperity Chairman and Chief Executive Officer. “We are on track with our implementation of fundamental changes that are directed toward accelerating growth in the years ahead.”

Revenues for the first quarter of 2012 increased 11.0% over the 2011 period primarily due to an 8.5% increase in the average number of worksite employees paid per month. Gross profit increased 13.2% to $103.0 million compared to the first quarter of 2011. The average gross profit per worksite employee per month increased $12, or 4.4%, to $282 in the first quarter of 2012 from $270 in the 2011 period. This increase was attributable to effective management within each of the company’s direct cost centers of the Insperity Workforce OptimizationTMsolution.

Operating expenses increased 5.4% to $80.0 million compared to $75.8 million in the first quarter of 2011. Operating expenses per worksite employee per month decreased $6, or 2.7%, to $219 in the first quarter of 2012 from $225 in the 2011 period. The year-over-year comparison includes rebranding costs incurred in the first quarter of 2011.

“Our strong first quarter results produced a record level of $29.8 million in EBITDA plus stock-based compensation,” said Douglas S. Sharp, senior vice-president of finance, Chief Financial Officer and treasurer. “Working capital increased to $135.9 million and included cash outlays of $3.9 million in dividends, $3.4 million in capital expenditures and $3.3 million in stock repurchases.”

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