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Insperity announces Q3 results

Insperity, a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the third quarter and nine months ended September 30, 2013.

Third Quarter Results

For the third quarter, the company reported net income of $10.1 million and diluted earnings per share of $0.39.

“In the third quarter we achieved our goal of ramping up the number of trained Business Performance Advisors and the corresponding sales activity is following,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We are well positioned for strong year-end sales, which will contribute to worksite employee growth in 2014.”

Revenues for the third quarter of 2013 increased 5.5% over the third quarter of 2012 due to a 1.7% 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 decreased 1.0% compared to the third quarter of 2012 to $97.4 million on a higher deficit in the benefits cost center. A high level of large health care claim activity led to a 2.7% decrease in the average gross profit per worksite employee per month compared to the third quarter of 2012. 

Operating expenses increased 1.3% over the third quarter of 2012 to $80.3 million. This increase included costs associated with the hiring of additional Business Performance Advisors and the company's health care reform strategy, partially offset by lower incentive compensation and general and administrative costs. Operating expenses per worksite employee per month decreased 0.5% to $207 in the 2013 quarter compared to $208 in the 2012 quarter.

Year-to-Date Results

For the nine months ended September 30, 2013, the company reported adjusted net income of $29.4 million and adjusted diluted earnings per share of $1.14. These earnings exclude costs of $2.7 million, or $0.10 per share associated with the impairment charge incurred in the second quarter related to the company's investment in The Receivables Exchange. On a GAAP basis, net income for the nine months ended September 30, 2013 was $26.7 million, or $1.04 per diluted share.

Year-to-date revenues were $1.7 billion, an increase of 4.5% over the 2012 period. Gross profit for the nine months ended September 30, 2013, increased 5.0% to $303.3 million. The average gross profit per worksite employee per month increased $8, or 3.1%, to $266 in the 2013 period from $258 in the 2012 period.

Year-to-date operating expenses increased 7.1% over the first nine months of 2012 to $253.9 million. On a per worksite employee per month basis, operating expenses increased 5.2% to $223 in the 2013 period from $212 in the 2012 period.

"We have generated adjusted EBITDA of $74 million through the first nine months of 2013. This is a slight increase over 2012 in spite of investments in the growth in the number of Business Performance Advisors and our health care reform initiative," said Douglas S. Sharp, senior vice-president of finance, chief financial officer and treasurer. "During the 2013 period, we have returned $30 million to stockholders through cash dividends and the repurchase of 593,834 shares of stock. Our balance sheet remains strong with $123 million of working capital and no debt, providing us with the opportunity to continue share buybacks."

 

 

 

 

 

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