(NYSE: NSP), 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, 2012. For the fourth quarter, the company’s adjusted net income was $11.9 million. Adjusted diluted earnings per share was $0.47, an 11.9% increase over 2011. Adjusted net income excludes an after-tax non-cash impairment charge of $2.5 million, or $0.10 per share, associated with a write-down of goodwill related to a 2006 acquisition. Additionally, there was a $0.03 effect to earnings per share, related to the accounting treatment associated with the $1.00 per share special dividend paid in December 2012. Reported fourth quarter net income and earnings per share were $9.4 million and $0.34, respectively.
For the year ended Dec. 31, 2012, the company had adjusted diluted earnings per share of $1.67, a 25.6% increase over 2011. Adjusted results exclude $0.10 per share related to the impairment charge and $0.01 per share related to the accounting treatment associated with the special dividend in 2012, and $0.17 per share for two non-operational items in 2011. Reported 2012 net income was $40.4 million, or $1.56 per share, a 34.5% increase compared to 2011.
“We are pleased with these strong results for both the quarter and the year, achieved in spite of the effects of the election and fiscal cliff on our customer base comprised of highly successful U.S. small businesses,” said
Paul J. Sarvadi
, Insperity chairman and chief executive officer. “Our plan for growth in 2013 is to invest in expanding our number of business performance advisors, leverage opportunities related to health care reform, and accelerate the growth of our adjacent businesses.”
Fourth Quarter Results
Revenues for the fourth quarter of 2012 increased 7.5% over the fourth quarter of 2011 due to a 6.0% increase in the average number of worksite employees paid per month and a 1.5% increase in revenues per worksite employee per month. Gross profit increased 4.0% over the fourth quarter of 2011 to $93.5 million, as expected.