BusinessWire

Insperity Announces Second Quarter Results

HOUSTON--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the second quarter ended Jun. 30, 2020:


  • Q2 net income and diluted EPS up 82% and 93% to $52 million and $1.33, respectively
  • Q2 adjusted EPS up 86% to $1.54
  • Q2 adjusted EBITDA up 62% to $92 million
  • YTD net income and diluted EPS up 9% and 15% to $114 million and $2.91, respectively
  • YTD adjusted EBITDA and adjusted EPS up 22% and 15% to $193 million and $3.24, respectively

Second Quarter Results

For the second quarter 2020, net income and diluted earnings per share (“EPS”) of $52 million and $1.33 represented increases of 82% and 93%, respectively, compared to the second quarter of 2019. Adjusted EPS was $1.54, an 86% increase from the second quarter of 2019. Adjusted EBITDA was $92.0 million, a 62% increase from the second quarter of 2019.

The average number of worksite employees (“WSEEs”) paid per month decreased by 1.8%, due primarily to layoffs in the client base associated with the COVID-19 pandemic. The average number of paid worksite employees of 227,894 in the second quarter of 2020 was near the high end of our expected range as worksite employees paid from new client sales were approximately 20% above forecast, client retention remained near our second quarter historical level of 99% and the level of worksite employees laid off, returning to work and general hiring were all favorable.

Revenues of $993.4 million decreased 5% from the second quarter of 2019 due to the combination of the decline in paid worksite employees, payroll tax deferrals and credits associated with the CARES and Families First Acts totaling $45 million and comprehensive service fee credits provided to our clients totaling approximately $12 million.

We are pleased with our overall Q2 results and the resiliency of our business in the face of the COVID-19 disruption. Insperity employees performed admirably, demonstrating the value of an agile and sophisticated HR function and helping our best of class small and medium sized client base navigate these unusual challenges,” said Paul J. Sarvadi, Insperity chief executive officer and chairman. “We believe the value clients received from our services throughout this period will drive increased demand for premium HR services in the years ahead.”

Gross profit increased by 27% over the second quarter of 2019 to $220.2 million. The year over year comparison was substantially impacted by favorable benefits and workers compensation cost trends. Lower than expected benefit costs were primarily associated with lower healthcare utilization including the deferral of elective procedures, some of which is expected to be offset in subsequent quarters with the resumption of deferred care and future COVID-19 costs. Lower workers’ compensation costs were primarily attributable to the effective management of claims incurred in prior periods and largely unrelated to the pandemic. The payroll tax deferrals and credits associated with the CARES and Families First Acts had no impact on gross profit, while the comprehensive service fee credits provided to our clients reduced gross profit by approximately $12 million.

Operating expenses increased 9% over the second quarter of 2019. Corporate employee headcount, excluding sales, remained level over the first half of this year, while the HR demands on our staff have increased with the pandemic, its impact on the economy, and a myriad of HR-related issues including diversity, equity and inclusion. Second quarter compensation costs included an acceleration in the timing of a portion of annual incentive compensation to reward our employees during this period of increased service demands and included continued investments in future growth, with a 15% increase in the average number of trained Business Performance Advisors. These expenditures were partially offset by savings in other areas, including lower travel, training and business promotion costs.

Year-to-Date Results

For the six months ended June 30, 2020, net income increased 9% over the first six months of 2019 to $113.9 million, and diluted EPS increased 15% to $2.91. Adjusted EPS increased 15% over the first six months of 2019 to $3.24. Adjusted EBITDA increased 22% over the first six months of 2019 to $193.2 million.

Revenues for the first six months of 2020 increased 1% to $2.2 billion, on a 2% increase in the average number of WSEEs paid per month over the 2019 period. Gross profit for the first six months of 2020 increased 13% to $454.3 million. Operating expenses increased 7% to $296.1 million over the 2019 period.

Net income per WSEE per month increased 8% from $76 in the 2019 period to $82 in the 2020 period. Adjusted EBITDA per WSEE per month increased 20% from $115 in the 2019 period to $138 in the 2020 period.

Cash outlays in the first six months of 2020 included the repurchase of approximately 879,000 shares of stock at a cost of $61.2 million, dividends totaling $31.1 million and capital expenditures of $39 million.

Our strong financial position and liquidity continued to improve over the first half of 2020 in the face of the challenges and dynamics surrounding the pandemic,” said Douglas S. Sharp, Insperity senior vice president of finance, chief financial officer and treasurer. “We ended the quarter with $269 million of adjusted cash and $130 million available under our $500 million credit facility, while continuing to invest in our business for the long-term.”

2020 Guidance

The company also announced its updated guidance for 2020, including the third quarter of 2020. Please refer to the accompanying financial tables at the end of this press release for the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures.

 

 

Q3 2020

 

Full Year 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

Average WSEEs paid (a)

 

227,500

 

 

230,000

 

228,500

 

 

233,200

Year-over-year decrease

 

(5.6)%

 

 

(4.5)%

 

(3.0)%

 

 

(1.0)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS (b)

 

$0.37

 

 

$0.54

 

$3.67

 

 

$4.04

Year-over-year decrease

 

(51)%

 

 

(28)%

 

(12)%

 

 

(3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (in millions) (b)

 

$29

 

 

$38

 

$235

 

 

$255

Year-over-year increase (decrease)

 

(43)%

 

 

(26)%

 

(6)%

 

 

2%

____________________________________

(a)

 

Q3 2020 guidance for average WSEEs paid represents flat to 1% sequential growth compared to the second quarter of 2020.

(b)

 

Q3 2020 guidance for Adjusted EPS and Adjusted EBITDA reflects an expected shift in the timing of health care utilization during the pandemic from Q2 2020 into the latter half of 2020. This shift is primarily the result of the deferral of non-essential procedures, including costs associated with participants with chronic conditions that missed treatments. As a result, the 2020 quarterly earnings pattern varies significantly from 2019.

Definition of Key Metrics

Average WSEEs paid - Determined by calculating the company’s cumulative worksite employees paid during the period divided by the number of months in the period.

Adjusted EPS - Represents diluted net income per share computed in accordance with GAAP, excluding the impact of non-cash stock-based compensation.

Adjusted EBITDA - Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense and non-cash stock-based compensation.

Insperity will be hosting a conference call today at 5 p.m. ET to discuss these results, provide guidance for the third quarter and an update to the full year guidance, and answer questions from investment analysts. To listen in, call 877-651-0053 and use conference i.d. number 3865667. The call will also be webcast at http://ir.insperity.com. The conference call script will be available at the same website later today. A replay of the conference call will be available at 855-859-2056, conference i.d. 3865667. The webcast will be archived for one year.

About Insperity

Insperity®, a trusted advisor to America’s best businesses for more than 34 years, provides an array of human resources and business solutions designed to help improve business performance. Offering the most comprehensive suite of products and services available in the marketplace, Insperity delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity through its premier Workforce Optimization® solution. Additional company offerings include Traditional Payroll and Human Capital Management, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Retirement Services and Insurance Services. With 2019 revenues of $4.3 billion, Insperity supports more than 100,000 businesses with over 2 million employees nationwide. For more information, visit http://www.insperity.com.

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, Insperity, Inc., in an effort to help keep our stockholders and the public informed about our operations, may from time to time issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of such plans or strategies, or projections involving anticipated revenues, earnings, unit growth, profit per worksite employee, pricing, operating expenses, benefits and workers’ compensation costs, or other aspects of operating results. We base the forward-looking statements on our expectations, estimates and projections at the time such statements are made. These statements are not guarantees of future performance and involve risks and uncertainties that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are:

  • adverse economic conditions;
  • impact of the COVID-19 pandemic, or other future pandemics, including the scope, severity and duration of the pandemic; government responses; regulatory developments; and the related disruptions and economic impact to our business and the small and medium-sized businesses that we serve;
  • regulatory and tax developments and possible adverse application of various federal, state and local regulations;
  • the ability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts;
  • cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients;
  • vulnerability to regional economic factors because of our geographic market concentration;
  • increases in health insurance costs and workers’ compensation rates and underlying claims trends, health care reform, financial solvency of workers’ compensation carriers, other insurers or financial institutions, state unemployment tax rates, liabilities for employee and client actions or payroll-related claims;
  • failure to manage growth of our operations and the effectiveness of our sales and marketing efforts;
  • the impact of the competitive environment and other developments in the human resources services industry, including the PEO industry, on our growth and/or profitability;
  • our liability for worksite employee payroll, payroll taxes and benefits costs;
  • our liability for disclosure of sensitive or private information;
  • our ability to integrate or realize expected returns on our acquisitions;
  • failure of our information technology systems;
  • an adverse final judgment or settlement of claims against Insperity; and
  • disruptions to our business resulting from the actions of certain stockholders.

These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate.

Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Insperity, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands)

 

June 30, 2020

 

December 31, 2019

 

 

 

 

 

Assets

 

 

 

 

Cash and cash equivalents

 

$

459,399

 

 

$

367,342

 

Restricted cash

 

45,216

 

 

49,295

 

Marketable securities

 

31,952

 

 

34,728

 

Accounts receivable, net

 

473,935

 

 

465,779

 

Prepaid insurance

 

23,494

 

 

10,418

 

Other current assets

 

34,651

 

 

43,493

 

Income taxes receivable

 

 

 

3,691

 

Total current assets

 

1,068,647

 

 

974,746

 

Property and equipment, net

 

177,762

 

 

147,706

 

Right of use leased assets

 

57,421

 

 

56,886

 

Prepaid health insurance

 

9,000

 

 

9,000

 

Deposits

 

186,044

 

 

184,013

 

Goodwill and other intangible assets, net

 

12,708

 

 

12,714

 

Deferred income taxes, net

 

 

 

3,956

 

Other assets

 

6,151

 

 

5,975

 

Total assets

 

$

1,517,733

 

 

$

1,394,996

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

Accounts payable

 

$

2,885

 

 

$

4,565

 

Payroll taxes and other payroll deductions payable

 

219,492

 

 

277,248

 

Accrued worksite employee payroll cost

 

409,068

 

 

401,859

 

Accrued health insurance costs

 

29,714

 

 

21,180

 

Accrued workers’ compensation costs

 

48,618

 

 

52,868

 

Accrued corporate payroll and commissions

 

41,507

 

 

52,612

 

Other accrued liabilities

 

60,742

 

 

58,713

 

Income taxes payable

 

28,537

 

 

 

Total current liabilities

 

840,563

 

 

869,045

 

Accrued workers’ compensation cost, net of current

 

197,501

 

 

193,609

 

Long-term debt

 

369,400

 

 

269,400

 

Operating lease liabilities, net of current

 

60,815

 

 

58,863

 

Deferred income taxes, net

 

712

 

 

 

Other accrued liabilities, net of current

 

4,104

 

 

 

Total noncurrent liabilities

 

632,532

 

 

521,872

 

Stockholders’ equity:

 

 

 

 

Common stock

 

555

 

 

555

 

Additional paid-in capital

 

54,783

 

 

48,141

 

Treasury stock, at cost

 

(592,313)

 

 

(544,102)

 

Retained earnings

 

581,613

 

 

499,485

 

Total stockholders’ equity

 

44,638

 

 

4,079

 

Total liabilities and stockholders’ equity

 

$

1,517,733

 

 

$

1,394,996

 

 

Insperity, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share amounts)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

Change

 

2020

 

2019

 

Change

Operating results:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

993,366

 

 

$

1,043,316

 

 

(4.8)

%

 

$

2,222,849

 

 

$

2,196,326

 

 

1.2

%

Payroll taxes, benefits and workers’ compensation costs

 

773,117

 

 

869,581

 

 

(11.1)

%

 

1,768,578

 

 

1,795,874

 

 

(1.5)

%

Gross profit

 

220,249

 

 

173,735

 

 

26.8

%

 

454,271

 

 

400,452

 

 

13.4

%

Salaries, wages and payroll taxes

 

90,710

 

 

74,696

 

 

21.4

%

 

177,211

 

 

158,076

 

 

12.1

%

Stock-based compensation

 

10,694

 

 

8,256

 

 

29.5

%

 

17,246

 

 

14,296

 

 

20.6

%

Commissions

 

7,475

 

 

7,741

 

 

(3.4)

%

 

15,935

 

 

14,693

 

 

8.5

%

Advertising

 

5,720

 

 

7,548

 

 

(24.2)

%

 

10,553

 

 

12,579

 

 

(16.1)

%

General and administrative expenses

 

24,755

 

 

29,866

 

 

(17.1)

%

 

59,608

 

 

63,028

 

 

(5.4)

%

Depreciation and amortization

 

7,908

 

 

6,908

 

 

14.5

%

 

15,510

 

 

13,599

 

 

14.1

%

Total operating expenses

 

147,262

 

 

135,015

 

 

9.1

%

 

296,063

 

 

276,271

 

 

7.2

%

Operating income

 

72,987

 

 

38,720

 

 

88.5

%

 

158,208

 

 

124,181

 

 

27.4

%

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

369

 

 

2,802

 

 

(86.8)

%

 

2,248

 

 

6,047

 

 

(62.8)

%

Interest expense

 

(2,219)

 

 

(1,639)

 

 

35.4

%

 

(4,581)

 

 

(3,320)

 

 

38.0

%

Income before income tax expense

 

71,137

 

 

39,883

 

 

78.4

%

 

155,875

 

 

126,908

 

 

22.8

%

Income tax expense

 

19,286

 

 

11,327

 

 

70.3

%

 

41,932

 

 

22,063

 

 

90.1

%

Net income

 

$

51,851

 

 

$

28,556

 

 

81.6

%

 

$

113,943

 

 

$

104,845

 

 

8.7

%

Less distributed and undistributed earnings allocated to participating securities

 

(276)

 

 

(309)

 

 

(10.7)

%

 

(724)

 

 

(1,183)

 

 

(38.8)

%

Net income allocated to common shares

 

$

51,575

 

 

$

28,247

 

 

82.6

%

 

$

113,219

 

 

$

103,662

 

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share of common stock

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.34

 

 

$

0.69

 

 

94.2

%

 

$

2.93

 

 

$

2.55

 

 

14.9

%

Diluted

 

$

1.33

 

 

$

0.69

 

 

92.8

%

 

$

2.91

 

 

$

2.54

 

 

14.6

%

____________________________________

(1)

 

Revenues are comprised of gross billings less WSEE payroll costs as follows:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands)

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Gross billings

 

$

6,355,683

 

 

$

6,377,014

 

 

$

13,792,437

 

 

$

13,248,684

 

Less: WSEE payroll cost

 

5,362,317

 

 

5,333,698

 

 

11,569,588

 

 

11,052,358

 

Revenues

 

$

993,366

 

 

$

1,043,316

 

 

$

2,222,849

 

 

$

2,196,326

 

 

Insperity, Inc.

KEY FINANCIAL AND STATISTICAL DATA

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

Change

 

2020

 

2019

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Average WSEEs paid

 

227,894

 

 

232,010

 

 

(1.8)

%

 

232,954

 

 

228,768

 

 

1.8

%

Statistical data (per WSEE per month):

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

1,453

 

 

$

1,499

 

 

(3.1)

%

 

$

1,590

 

 

$

1,600

 

 

(0.6)

%

Gross profit

 

322

 

 

250

 

 

28.8

%

 

325

 

 

292

 

 

11.3

%

Operating expenses

 

215

 

 

194

 

 

10.8

%

 

212

 

 

201

 

 

5.5

%

Operating income

 

107

 

 

56

 

 

91.1

%

 

113

 

 

90

 

 

25.6

%

Net income

 

76

 

 

41

 

 

85.4

%

 

82

 

 

76

 

 

7.9

%

____________________________________

(1)

 

Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month follows:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(per WSEE per month)

 

2020

 

2019

 

2020

 

2019

Gross billings

 

$

9,296

 

 

$

9,162

 

 

$

9,868

 

 

$

9,652

 

Less: WSEE payroll cost

 

7,843

 

 

7,663

 

 

8,278

 

 

8,052

 

Revenues

 

$

1,453

 

 

$

1,499

 

 

$

1,590

 

 

$

1,600

 

 

Insperity, Inc.

Non-GAAP Financial Measures

(Unaudited)

Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below.

Non-GAAP Measure

Definition

Benefit of Non-GAAP Measure

Non-bonus payroll cost

Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.

 

Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program.

Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.

 

We include these non-GAAP financial measures because we believe they are useful to investors in allowing for greater transparency related to the costs incurred under our current workers’ compensation program.

Adjusted cash, cash equivalents and marketable securities

Excludes funds associated with:

• federal and state income tax withholdings,

• employment taxes,

• other payroll deductions, and

• client prepayments.

We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. Adjusted EBITDA is used by our lenders to assess our leverage and ability to make interest payments.

 

 

EBITDA

Represents net income computed in accordance with GAAP, plus:

• interest expense,

• income tax expense, and

• depreciation and amortization expense.

 

 

Adjusted EBITDA

Represents EBITDA plus:

• non-cash stock-based compensation.

 

 

Adjusted Net Income

Represents net income computed in accordance with GAAP, excluding:
• non-cash stock-based compensation.

 

 

Adjusted EPS

Represents diluted net income per share computed in accordance with GAAP, excluding:
• non-cash stock-based compensation.

Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except per WSEE per month)

 

2020

 

2019

 

2020

 

2019

 

$

 

WSEE

 

$

 

WSEE

 

$

 

WSEE

 

$

 

WSEE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll cost

 

$

5,362,317

 

 

$

7,843

 

 

$

5,333,698

 

 

$

7,663

 

 

$

11,569,588

 

 

$

8,278

 

 

$

11,052,358

 

 

$

8,052

 

Less: Bonus payroll cost

 

453,121

 

 

662

 

 

451,828

 

 

649

 

 

1,504,089

 

 

1,076

 

 

1,442,406

 

 

1,051

 

Non-bonus payroll cost

 

$

4,909,196

 

 

$

7,181

 

 

$

4,881,870

 

 

$

7,014

 

 

$

10,065,499

 

 

$

7,202

 

 

$

9,609,952

 

 

$

7,001

 

% Change period over period

 

0.6

%

 

2.4

%

 

14.7

%

 

0.8

%

 

4.7

%

 

2.9

%

 

15.3

%

 

0.7

%

Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):

(in thousands)

 

June 30, 2020

 

December 31, 2019

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

491,351

 

 

$

402,070

 

Less:

 

 

 

 

Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions

 

190,909

 

 

234,553

 

Client prepayments

 

31,470

 

 

59,612

 

Adjusted cash, cash equivalents and marketable securities

 

$

268,972

 

 

$

107,905

 

Following is a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):

(in thousands, except per WSEE per month)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

 

$

 

WSEE

 

$

 

WSEE

 

$

 

WSEE

 

$

 

WSEE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

51,851

 

 

$

76

 

 

$

28,556

 

 

$

41

 

 

$

113,943

 

 

$

82

 

 

$

104,845

 

 

$

76

 

Income tax expense

 

19,286

 

 

28

 

 

11,327

 

 

16

 

 

41,932

 

 

30

 

 

22,063

 

 

16

 

Interest expense

 

2,219

 

 

3

 

 

1,639

 

 

2

 

 

4,581

 

 

3

 

 

3,320

 

 

2

 

Depreciation and amortization

 

7,908

 

 

12

 

 

6,908

 

 

11

 

 

15,510

 

 

11

 

 

13,599

 

 

11

 

EBITDA

 

81,264

 

 

119

 

 

48,430

 

 

70

 

 

175,966

 

 

126

 

 

143,827

 

 

105

 

Stock-based compensation

 

10,694

 

 

16

 

 

8,256

 

 

11

 

 

17,246

 

 

12

 

 

14,296

 

 

10

 

Adjusted EBITDA

 

$

91,958

 

 

$

135

 

 

$

56,686

 

 

$

81

 

 

$

193,212

 

 

$

138

 

 

$

158,123

 

 

$

115

 

% Change period over period

 

62.2

%

 

66.7

%

 

21.6

%

 

6.6

%

 

22.2

%

 

20.0

%

 

21.2

%

 

5.5

%

Following is a reconciliation of net income (GAAP) to adjusted net income (non-GAAP):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands)

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Net income

 

$

51,851

 

 

$

28,556

 

 

$

113,943

 

 

$

104,845

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

10,694

 

 

8,256

 

 

17,246

 

 

14,296

 

Total non-GAAP adjustments

 

10,694

 

 

8,256

 

 

17,246

 

 

14,296

 

Tax effect

 

(2,899)

 

 

(2,345)

 

 

(4,650)

 

 

(3,090)

 

Adjusted net income

 

$

59,646

 

 

$

34,467

 

 

$

126,539

 

 

$

116,051

 

% Change period over period

 

73.1

%

 

20.2

%

 

9.0

%

 

31.5

%


Contacts

Investor Relations Contact:
Douglas S. Sharp
Senior Vice President of Finance,
Chief Financial Officer and Treasurer
(281) 348-3232
Investor.Relations@Insperity.com

News Media Contact:
Suzanne Haugen
Public Relations Manager
(281) 312-3543
Media@Insperity.com


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