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Insperity Announces First Quarter Results

Insperity Announces First Quarter Results

Gross profit per worksite employee per month reaches historical high of $292

Ended Q1 with $114 million of working capital after generating $27 million of EBITDA and repurchasing 472,000 shares

Insperity, Inc.has reported first quarter net income of $13.2 million and diluted earnings per share of $0.51.

Revenues for the first quarter of 2013 increased 2.8% over the first quarter of 2012 due to a 1.2% increase in the average number of worksite employees paid per month and a 1.6% increase in revenues per worksite employee per month. Gross profit increased 5.0% over the first quarter of 2012 to $108.1 million. Gross profit per worksite employee per month increased 3.5% to $292 on improvement in the benefits cost center and an increase in the contribution from the adjacent business units.

“We are pleased with our solid financial results and the progress we made on our growth initiatives for 2013,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We have ramped up our number of Business Performance Advisors and prepared them to take advantage of health care reform opportunities and drive growth in our adjacent businesses.”

Operating expenses increased to $86.1 million, a 7.7% increase over the first quarter of 2012, and included costs associated with a recent ramp up in the number of Business Performance Advisors and implementation of the company’s health care reform strategy. Operating expenses per worksite employee per month increased $14, or 6.4% to $233 in the first quarter of 2013 from $219 in the 2012 period.

EBITDA totaled $27.3 million. During the quarter, the company repurchased 472,211 shares at a cost of $13.5 million and paid its quarterly dividend of $4.3 million. Working capital at March 31, 2013, was $113.7 million.

“We started 2013 generating near record levels of cash flow,” said Douglas S. Sharp, senior vice-president of finance, chief financial officer and treasurer. “When combined with our strong balance sheet, we are positioned well to invest in our growth plan, pay ongoing dividends and repurchase shares at attractive levels.”

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