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Insperity Announces Second Quarter Results

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, 2021:

  • Q2 average number of WSEEs paid and revenues up 7% and 19%, respectively
  • Q2 net income and diluted EPS of $25.2 million and $0.65, respectively
  • Q2 adjusted EBITDA and adjusted EPS of $60.2 million and $0.91, respectively
  • YTD net income and diluted EPS of $87.1 million and $2.24, respectively
  • YTD adjusted EBITDA and adjusted EPS of $164.4 million and $2.72, respectively

Second Quarter Results

The average number of worksite employees (“WSEEs”) paid per month in Q2 2021 increased 7% to 243,270 WSEEs. WSEEs paid from new sales and net gains from hiring in our client base drove the accelerated growth above the high end of our expectations. Client retention remained at our historical high levels, averaging 99% for the quarter. Revenues in Q2 2021 increased 19% to $1.2 billion on the 7% increase in paid worksite employees and a 12% increase in revenue per WSEE, which includes a 6% increase in pricing and the non-recurrence of the 2020 FICA deferral credits and customer comprehensive service fee credits.

“We are pleased with our strong results and successful execution of our plan over the first half of this year,” said Paul J. Sarvadi, Insperity chief executive officer and chairman. “Over the balance of 2021, we expect to invest and build upon our strong momentum in order to capitalize on our exceptional market opportunity in the years ahead.”

Gross profit for Q2 2021 totaled $199.6 million and included the growth in paid worksite employees and revenue per worksite employee above targeted levels and favorable results from our workers’ compensation program. The 9% decline in gross profit from Q2 of the prior year was primarily attributable to unusually low benefit costs in Q2 2020 due to the deferral of care at the onset of the pandemic. In Q2 2021, higher benefit costs were driven by increased utilization of our health plan, including care previously deferred during the height of the pandemic and COVID-19 related vaccination, testing and treatment costs. The impact of these higher benefit costs was partially offset by improved results in our payroll tax area, as state unemployment tax rates received during Q2 came in lower than our estimates and also included the receipt of $11 million of federal payroll tax refunds related to prior years.

Operating expenses increased 12% over Q2 2020, however increased just 8% when excluding performance-based compensation. Second quarter 2021 operating costs reflected continued growth investments, including an increase in marketing costs associated with lead generation activity and our SalesForce implementation. While we have reinstituted travel for certain employees and events, these costs, along with other personnel and G&A costs continue to be managed at historically low levels as the economy and our growth recovers from the pandemic.

For the second quarter of 2021, reported net income and diluted earnings per share (“EPS”) were $25.2 million and $0.65, respectively. Adjusted EBITDA decreased 35% to $60.2 million and adjusted EPS decreased 41% to $0.91. The year over year earnings comparisons to the second quarter of 2020 reflect unusually low benefits costs in that period due to low utilization of our health plan during the onset of the pandemic.

“We are pleased with our performance throughout the uncertainty of the pandemic, continuing our profitability and reestablishing our growth momentum,” said Douglas S. Sharp, Insperity senior vice president of finance, chief financial officer and treasurer. “This has positioned us to continue to invest in our long-term growth while providing strong return to our shareholders, including the recent increase in our dividend and our ongoing share repurchase program.”

Year-to-Date Results

Revenues for the first six months of 2021 increased 11% to $2.5 billion on a 2% increase in paid worksite employees and a 9% increase in revenue per WSEE. Gross profit for the first six months of 2021 decreased 1% to $451.0 million. Operating expenses increased 12% to $332.0 million over the 2020 period.

For the six months ended June 30, 2021, reported net income and diluted EPS were $87.1 million and $2.24, respectively. Adjusted EPS decreased 16% over the first six months of 2020 to $2.72. Adjusted EBITDA decreased 15% over the first six months of 2020 to $164.4 million.

Net income per WSEE per month decreased 26% from $82 in the 2020 period to $61 in the 2021 period. Adjusted EBITDA per WSEE per month decreased 17% from $138 in the 2020 period to $115 in the 2021 period.

Cash outlays in the first six months of 2021 included the repurchase of approximately 438,000 shares of stock at a cost of $38.5 million, dividends totaling $32.8 million and capital expenditures of $20.7 million. Adjusted cash totaled $213 million at June 30, 2021 and $130 million remains available under our $500 million credit facility.

2021 Guidance

The company also announced its updated guidance for 2021, including the third quarter of 2021. 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 2021

 

Full Year 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Average WSEEs paid(a)

 

253,800

 

 

256,100

 

247,100

 

 

249,500

Year-over-year increase

 

9.5%

 

 

10.5%

 

5.5%

 

 

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS

 

$0.74

 

 

$0.93

 

$4.00

 

 

$4.59

Year-over-year increase (decrease)

 

(19)%

 

 

2%

 

(14)%

 

 

(1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (in millions)

 

$52

 

 

$62

 

$258

 

 

$288

Year-over-year increase (decrease)

 

(10)%

 

 

8%

 

(11)%

 

 

0%

           

(a) Q3 2021 guidance for average WSEEs paid represents 4.3% to 5.3% sequential growth compared to Q2 2021.

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.

Conference Call and Webcast

Insperity will be hosting a conference call today at 5 p.m. ET to discuss these results, and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 877-651-0053 and use conference i.d. number 1411119. 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. 1411119. The webcast will be archived for one year.

About Insperity

Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering the most comprehensive suite of scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need for sustained growth. With 2020 revenues of $4.3 billion and more than 80 offices throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities 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 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 “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,” “could,” “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, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may 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, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base the forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions 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;
  • vulnerability to regional economic factors because of our geographic market concentration;
  • failure to comply with covenants under our credit facility;
  • our liability for worksite employee payroll, payroll taxes and benefits costs;
  • 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;
  • cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients;
  • the ability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts;
  • regulatory and tax developments and possible adverse application of various federal, state and local regulations;
  • 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;
  • an adverse final judgment or settlement of claims against Insperity;
  • disruptions of our information technology systems;
  • our liability or damage to our reputation relating to disclosure of sensitive or private information as a result of data theft, cyberattacks or security vulnerabilities;
  • failure of third-party providers, data centers or cloud service providers; and
  • our ability to integrate or realize expected returns on our acquisitions.

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, 2021

 

December 31, 2020

 

 

 

 

 

Assets

 

 

 

 

Cash and cash equivalents

 

$

455,387

 

 

$

554,846

 

Restricted cash

 

 

46,128

 

 

 

45,522

 

Marketable securities

 

 

34,597

 

 

 

34,529

 

Accounts receivable, net

 

 

595,836

 

 

 

392,746

 

Prepaid insurance

 

 

17,143

 

 

 

10,164

 

Other current assets

 

 

47,070

 

 

 

39,461

 

Income taxes receivable

 

 

5,128

 

 

 

 

Total current assets

 

 

1,201,289

 

 

 

1,077,268

 

Property and equipment, net

 

 

219,611

 

 

 

216,256

 

Right of use leased assets

 

 

66,463

 

 

 

60,663

 

Prepaid health insurance

 

 

9,000

 

 

 

9,000

 

Deposits

 

 

211,512

 

 

 

194,231

 

Goodwill and other intangible assets, net

 

 

12,707

 

 

 

12,707

 

Deferred income taxes, net

 

 

442

 

 

 

9,603

 

Other assets

 

 

7,060

 

 

 

4,548

 

Total assets

 

$

1,728,084

 

 

$

1,584,276

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

Accounts payable

 

$

4,063

 

 

$

6,203

 

Payroll taxes and other payroll deductions payable

 

 

262,975

 

 

 

377,960

 

Accrued worksite employee payroll cost

 

 

529,881

 

 

 

334,836

 

Accrued health insurance costs

 

 

29,064

 

 

 

32,685

 

Accrued workers’ compensation costs

 

 

49,845

 

 

 

48,186

 

Accrued corporate payroll and commissions

 

 

63,901

 

 

 

44,277

 

Other accrued liabilities

 

 

62,960

 

 

 

60,777

 

Total current liabilities

 

 

1,002,689

 

 

 

904,924

 

Accrued workers’ compensation cost, net of current

 

 

192,703

 

 

 

195,239

 

Long-term debt

 

 

369,400

 

 

 

369,400

 

Operating lease liabilities, net of current

 

 

69,736

 

 

 

64,289

 

Other accrued liabilities, net of current

 

 

6,294

 

 

 

6,292

 

Total noncurrent liabilities

 

 

638,133

 

 

 

635,220

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

555

 

 

 

555

 

Additional paid-in capital

 

 

94,396

 

 

 

95,528

 

Treasury stock, at cost

 

 

(635,627

)

 

 

(626,984

)

Retained earnings

 

 

627,938

 

 

 

575,033

 

Total stockholders’ equity

 

 

87,262

 

 

 

44,132

 

Total liabilities and stockholders’ equity

 

$

1,728,084

 

 

$

1,584,276

 

Insperity, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

(in thousands, except per share amounts)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

Operating results:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

1,185,371

 

 

$

993,366

 

 

19.3

%

 

$

2,472,206

 

 

$

2,222,849

 

 

11.2

%

Payroll taxes, benefits and workers’ compensation costs

 

 

985,817

 

 

 

773,117

 

 

27.5

%

 

 

2,021,207

 

 

 

1,768,578

 

 

14.3

%

Gross profit

 

 

199,554

 

 

 

220,249

 

 

(9.4

)%

 

 

450,999

 

 

 

454,271

 

 

(0.7

)%

Salaries, wages and payroll taxes

 

 

94,362

 

 

 

90,710

 

 

4.0

%

 

 

197,437

 

 

 

177,211

 

 

11.4

%

Stock-based compensation

 

 

13,781

 

 

 

10,694

 

 

28.9

%

 

 

25,603

 

 

 

17,246

 

 

48.5

%

Commissions

 

 

8,251

 

 

 

7,475

 

 

10.4

%

 

 

15,970

 

 

 

15,935

 

 

0.2

%

Advertising

 

 

8,975

 

 

 

5,720

 

 

56.9

%

 

 

14,297

 

 

 

10,553

 

 

35.5

%

General and administrative expenses

 

 

29,211

 

 

 

24,755

 

 

18.0

%

 

 

60,847

 

 

 

59,608

 

 

2.1

%

Depreciation and amortization

 

 

9,751

 

 

 

7,908

 

 

23.3

%

 

 

17,798

 

 

 

15,510

 

 

14.8

%

Total operating expenses

 

 

164,331

 

 

 

147,262

 

 

11.6

%

 

 

331,952

 

 

 

296,063

 

 

12.1

%

Operating income

 

 

35,223

 

 

 

72,987

 

 

(51.7

)%

 

 

119,047

 

 

 

158,208

 

 

(24.8

)%

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,436

 

 

 

369

 

 

289.2

%

 

 

1,979

 

 

 

2,248

 

 

(12.0

)%

Interest expense

 

 

(1,975

)

 

 

(2,219

)

 

(11.0

)%

 

 

(3,574

)

 

 

(4,581

)

 

(22.0

)%

Income before income tax expense

 

 

34,684

 

 

 

71,137

 

 

(51.2

)%

 

 

117,452

 

 

 

155,875

 

 

(24.6

)%

Income tax expense

 

 

9,530

 

 

 

19,286

 

 

(50.6

)%

 

 

30,376

 

 

 

41,932

 

 

(27.6

)%

Net income

 

$

25,154

 

 

$

51,851

 

 

(51.5

)%

 

$

87,076

 

 

$

113,943

 

 

(23.6

)%

Less distributed and undistributed earnings allocated to participating securities

 

 

(37

)

 

 

(276

)

 

(86.6

)%

 

 

(193

)

 

 

(724

)

 

(73.3

)%

Net income allocated to common shares

 

$

25,117

 

 

$

51,575

 

 

(51.3

)%

 

$

86,883

 

 

$

113,219

 

 

(23.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share of common stock

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.65

 

 

$

1.34

 

 

(51.5

)%

 

$

2.26

 

 

$

2.93

 

 

(22.9

)%

Diluted

 

$

0.65

 

 

$

1.33

 

 

(51.1

)%

 

$

2.24

 

 

$

2.91

 

 

(23.0

)%

         

(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)

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Gross billings

 

$

7,637,851

 

$

6,355,683

 

$

15,688,273

 

$

13,792,437

Less: WSEE payroll cost

 

 

6,452,480

 

 

5,362,317

 

 

13,216,067

 

 

11,569,588

Revenues

 

$

1,185,371

 

$

993,366

 

$

2,472,206

 

$

2,222,849

     

Insperity, Inc.

KEY FINANCIAL AND STATISTICAL DATA

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Average WSEEs paid

 

 

243,270

 

 

227,894

 

6.7

%

 

 

238,220

 

 

232,954

 

2.3

%

Statistical data (per WSEE per month):

 

 

 

 

 

 

 

 

 

 

 

 

Revenues(1)

 

$

1,624

 

$

1,453

 

11.8

%

 

$

1,730

 

$

1,590

 

8.8

%

Gross profit

 

 

273

 

 

322

 

(15.2

)%

 

 

316

 

 

325

 

(2.8

)%

Operating expenses

 

 

225

 

 

215

 

4.7

%

 

 

232

 

 

212

 

9.4

%

Operating income

 

 

48

 

 

107

 

(55.1

)%

 

 

83

 

 

113

 

(26.5

)%

Net income

 

 

34

 

 

76

 

(55.3

)%

 

 

61

 

 

82

 

(25.6

)%

         

(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)

 

2021

 

2020

 

2021

 

2020

Gross billings

 

$

10,466

 

$

9,296

 

$

10,976

 

$

9,868

Less: WSEE payroll cost

 

 

8,842

 

 

7,843

 

 

9,246

 

 

8,278

Revenues

 

$

1,624

 

$

1,453

 

$

1,730

 

$

1,590

     

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.

 

 

 

Adjusted operating expenses

 

Represents operating expenses excluding the impact of the following:

• non-cash stock-based compensation, and

• depreciation and amortization expense.

 

 

 

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)

 

2021

 

2020

 

2021

 

2020

 

 

 

Per WSEE

 

 

 

Per WSEE

 

 

 

Per WSEE

 

 

 

Per WSEE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll cost

 

$

6,452,480

 

 

$

8,842

 

 

$

5,362,317

 

 

$

7,843

 

 

$

13,216,067

 

 

$

9,246

 

 

$

11,569,588

 

 

$

8,278

 

Less: Bonus payroll cost

 

 

796,154

 

 

 

1,092

 

 

 

453,121

 

 

 

662

 

 

 

2,216,629

 

 

 

1,551

 

 

 

1,504,089

 

 

 

1,076

 

Non-bonus payroll cost

 

$

5,656,326

 

 

$

7,750

 

 

$

4,909,196

 

 

$

7,181

 

 

$

10,999,438

 

 

$

7,695

 

 

$

10,065,499

 

 

$

7,202

 

% Change period over period

 

 

15.2

%

 

 

7.9

%

 

 

0.6

%

 

 

2.4

%

 

 

9.3

%

 

 

6.8

%

 

 

4.7

%

 

 

2.9

%

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, 2021

 

December 31, 2020

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

489,984

 

 

$

589,375

 

Less:

 

 

 

 

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

 

226,727

 

 

341,988

 

Client prepayments

 

50,420

 

 

35,328

 

Adjusted cash, cash equivalents and marketable securities

 

$

212,837

 

 

$

212,059

 

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,

 

2021

 

2020

 

2021

 

2020

 

 

 

Per WSEE

 

 

 

Per WSEE

 

 

 

Per WSEE

 

 

 

Per WSEE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

25,154

 

 

$

34

 

 

$

51,851

 

 

$

76

 

 

$

87,076

 

 

$

61

 

 

$

113,943

 

 

$

82

 

Income tax expense

 

 

9,530

 

 

 

13

 

 

 

19,286

 

 

 

28

 

 

 

30,376

 

 

 

21

 

 

 

41,932

 

 

 

30

 

Interest expense

 

 

1,975

 

 

 

3

 

 

 

2,219

 

 

 

3

 

 

 

3,574

 

 

 

3

 

 

 

4,581

 

 

 

3

 

Depreciation and amortization

 

 

9,751

 

 

 

14

 

 

 

7,908

 

 

 

12

 

 

 

17,798

 

 

 

12

 

 

 

15,510

 

 

 

11

 

EBITDA

 

 

46,410

 

 

 

64

 

 

 

81,264

 

 

 

119

 

 

 

138,824

 

 

 

97

 

 

 

175,966

 

 

 

126

 

Stock-based compensation

 

 

13,781

 

 

 

18

 

 

 

10,694

 

 

 

16

 

 

 

25,603

 

 

 

18

 

 

 

17,246

 

 

 

12

 

Adjusted EBITDA

 

$

60,191

 

 

$

82

 

 

$

91,958

 

 

$

135

 

 

$

164,427

 

 

$

115

 

 

$

193,212

 

 

$

138

 

% Change period over period

 

 

(34.5

)%

 

 

(39.3

)%

 

 

62.2

%

 

 

66.7

%

 

 

(14.9

)%

 

 

(16.7

)%

 

 

22.2

%

 

 

20.0

%

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)

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Net income

 

$

25,154

 

 

$

51,851

 

 

$

87,076

 

 

$

113,943

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

13,781

 

 

 

10,694

 

 

 

25,603

 

 

 

17,246

 

Tax effect

 

 

(3,643

)

 

 

(2,899

)

 

 

(6,621

)

 

 

(4,650

)

Total non-GAAP adjustments, net

 

 

10,138

 

 

 

7,795

 

 

 

18,982

 

 

 

12,596

 

Adjusted net income

 

$

35,292

 

 

$

59,646

 

 

$

106,058

 

 

$

126,539

 

% Change period over period

 

 

(40.8

)%

 

 

73.1

%

 

 

(16.2

)%

 

 

9.0

%

Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.65

 

 

$

1.33

 

 

$

2.24

 

 

$

2.91

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

0.35

 

 

0.27

 

 

0.66

 

 

0.44

 

Tax effect

 

(0.09)

 

 

(0.06)

 

 

(0.18)

 

 

(0.11)

 

Total non-GAAP adjustments, net

 

$

0.26

 

 

$

0.21

 

 

$

0.48

 

 

$

0.33

 

Adjusted EPS

 

$

0.91

 

 

$

1.54

 

 

$

2.72

 

 

$

3.24

 

% Change period over period

 

(40.9)

%

 

85.5

%

 

(16.0)

%

 

15.3

%

Following is a reconciliation of GAAP to non-GAAP financial measures for third quarter and full year 2021 guidance:

 

(in millions, except per share amounts)

 

Q3 2021 Guidance

 

Full Year 2021 Guidance

 

 

 

 

 

Net income

 

$21 - $28

 

$123 - $146

Income tax expense

 

8 - 11

 

44 - 51

Interest expense

 

2

 

8

Depreciation and amortization

 

10

 

39

EBITDA

 

41 - 51

 

214 - 244

Stock-based compensation

 

11

 

44

Adjusted EBITDA

 

$52 - $62

 

$258 - $288

 

 

 

 

 

Diluted net income per share of common stock

 

$0.55 - $0.74

 

$3.17 - $3.76

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

0.27

 

1.13

Tax effect

 

(0.08)

 

(0.30)

Total non-GAAP adjustments, net

 

0.19

 

0.83

Adjusted EPS

 

$0.74 - $0.93

 

$4.00 - $4.59

 

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:

Larry Shaffer

SVP of Marketing and Business Development

281-312-3020

Media@Insperity.com

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