Insperity announces 56% EBITDA increase in Q2
Adjusted net income was $10.8 million and adjusted diluted earnings per share were $0.42, a 110.0% increase over the second quarter of 2014. Reported second quarter GAAP net income and earnings per share were $7.3 million and $0.29, respectively.
Second Quarter Results
Revenues for the second quarter of 2015 increased 11.2% over the second quarter of 2014. The average number of worksite employees paid per month increased 11.6% during the quarter, an acceleration from the 9.2% year-over-year growth in the first quarter of 2015. All three drivers to worksite employee growth including sales, client retention and net hiring in our client base, improved over the second quarter of 2014.
“Our second quarter results reflect successful execution of our 2015 plan to accelerate growth while carefully managing operating costs,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We expect to continue positive trends in growth and profitability over the balance of this year.”
Adjusted EBITDA increased 55.5% on a 9.2% increase in gross profit and a less than 1% increase in operating expenses over the 2014 period, reflecting planned operating leverage.
For the six months ended June 30, 2015, adjusted EBITDA increased 66.9% to $64.9 million and adjusted diluted earnings per share increased 100.0% to $1.28. Reported 2015 GAAP net income was $21.1 million, or $0.83 per share.
Revenues in the first six months of 2015 were $1.3 billion, an increase of 10.5% over the 2014 period on a 10.4% increase in the average number of worksite employees paid per month. Gross profit for the six months ended June 30, 2015 increased 16.1% to $234.1 million, while adjusted operating expenses increased only 3.6% to $185.7 million.
Cash outlays in the first six months of 2015 included the repurchase of 645,292 shares of stock at a cost of $33.5 million, dividends totaling $10.4 million and capital expenditures of $5.9 million.
“In spite of recently increasing our dividend rate by 16% and being more aggressive in our share buybacks, our strong cash flow has resulted in a $6.2 million increase in adjusted working capital over Dec. 31, 2014 to $79.3 million at June 30, 2015,” said Douglas S. Sharp, senior vice president of finance, chief financial officer and treasurer. “Our outlook for continued strong cash flow positions us well to execute on our strategic plan and continue our track record of significant returns to stockholders.”