Insperity Announces Record Third Quarter And Year-to-Date Results
Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America's best businesses, today reported third quarter net income and diluted earnings per share of $14.
Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America's best businesses, today reported third quarter net income and diluted earnings per share of $14.1 million and $0.66, which represent increases of 18% and 38%, respectively, compared to the third quarter of 2015. Adjusted diluted earnings per share were $0.78, a 37% increase over the third quarter of 2015. Adjusted EBITDA increased 11% over the third quarter of 2015 to $31.3 million. "We are pleased with our third quarter and year-to-date growth and profitability as we continue to see strong demand for our best of class service offerings," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "We are off to an excellent start on our fall campaign selling and retention season which sets the stage for a strong 2017." Third Quarter Results Revenues for the third quarter of 2016 increased 12% over the third quarter of 2015 on a 13% increase in the average number of worksite employees paid per month. The worksite employee growth was the result of new client sales driven by an increase in the number of trained Business Performance Advisors and improved sales efficiency, combined with a continuing high level of client retention. Net hiring of worksite employees by our clients during the quarter was lower than recent trends, resulting in a 1% shortfall from our expected worksite employee growth rate. Gross profit increased 10% over the third quarter of 2015 to $117.8 million and included positive results from our workers' compensation program, which offset a higher than expected level of large healthcare claims. Operating expenses increased 9% over the third quarter of 2015, but declined on a per worksite employee per month basis, from $194 to $187. As a result, adjusted EBITDA totaled $31.3 million, above the midpoint of our expected range.