Insperity Announces Third Quarter Results
Insperity (NYSE: NSP) reported Q3 2024 results with net income of $3 million and diluted EPS of $0.07. The company saw a 2% year-over-year decrease in average worksite employees (WSEEs) to 309,088, while revenues increased 1% to $1.6 billion. Gross profit decreased 11% to $229 million, impacted by higher benefits costs. Year-to-date performance showed revenues up 1% to $5.0 billion despite a 1% decrease in WSEEs. The company returned $119 million to shareholders through share repurchases and dividends. For full-year 2024, Insperity expects WSEEs to decrease 1.3-1.5% and projects adjusted EPS of $3.42-$3.66.
Insperity (NYSE: NSP) ha riportato i risultati del terzo trimestre 2024 con un reddito netto di 3 milioni di dollari e un utile per azione diluito di 0,07 dollari. L'azienda ha registrato un calo del 2% anno su anno nel numero medio di dipendenti in cantiere (WSEE) scendendo a 309.088, mentre i ricavi sono aumentati dell'1% a 1,6 miliardi di dollari. Il profitto lordo è diminuito dell'11% a 229 milioni di dollari, influenzato dall'aumento dei costi dei benefici. Le performance da inizio anno hanno mostrato ricavi in aumento dell'1% a 5,0 miliardi di dollari nonostante una diminuzione dell'1% nei WSEE. L'azienda ha restituito 119 milioni di dollari agli azionisti attraverso riacquisti di azioni e dividendi. Per l'intero anno 2024, Insperity prevede una diminuzione degli WSEE dell'1,3-1,5% e stima un EPS rettificato di 3,42-3,66 dollari.
Insperity (NYSE: NSP) reportó resultados del tercer trimestre de 2024 con un ingreso neto de 3 millones de dólares y un EPS diluido de 0,07 dólares. La compañía vio una disminución del 2% interanual en el promedio de empleados en el lugar de trabajo (WSEE) a 309,088, mientras que los ingresos aumentaron un 1% a 1.6 mil millones de dólares. La ganancia bruta disminuyó un 11% a 229 millones de dólares, afectada por el aumento en los costos de beneficios. El rendimiento del año hasta la fecha mostró ingresos en aumento del 1% a 5.0 mil millones de dólares a pesar de una disminución del 1% en WSEE. La empresa devolvió 119 millones de dólares a los accionistas a través de recompra de acciones y dividendos. Para el año completo de 2024, Insperity espera que WSEE disminuyan del 1.3 al 1.5% y proyecta un EPS ajustado de 3.42-3.66 dólares.
Insperity (NYSE: NSP)는 2024년 3분기 결과를 보고하였으며, 순이익은 300만 달러, 희석 주당순이익은 0.07 달러입니다. 회사는 평균 근무장소 직원(WSEE)이 309,088명으로 전년 동기 대비 2% 감소했으며, 수익은 1% 증가하여 16억 달러에 달했습니다. 총 이익은 2억 2900만 달러로 11% 감소했으며, 이는 증가한 복리후생 비용에 영향을 받았습니다. 올해 누적 실적은 WSEE가 1% 감소했음에도 불구하고 수익이 50억 달러로 1% 증가했습니다. 회사는 주식 매입 및 배당금을 통해 주주에게 1억 1900만 달러를 환원했습니다. 2024년 전체 연도에 대해 Insperity는 WSEE가 1.3-1.5% 감소할 것으로 예상하며 조정된 EPS는 3.42-3.66 달러로 전망합니다.
Insperity (NYSE: NSP) a annoncé des résultats pour le troisième trimestre 2024 avec un revenu net de 3 millions de dollars et un BPA dilué de 0,07 dollar. L'entreprise a observé une diminution de 2% d'une année sur l'autre dans le nombre moyen d'employés en site de travail (WSEE), atteignant 309.088, tandis que les revenus ont augmenté de 1% à 1,6 milliard de dollars. Le bénéfice brut a baissé de 11% pour atteindre 229 millions de dollars, en raison de la hausse des coûts des avantages. Les performances depuis le début de l'année montrent que les revenus ont augmenté de 1% à 5,0 milliards de dollars malgré une déclin de 1% dans les WSEE. L'entreprise a restitué 119 millions de dollars aux actionnaires par le biais de rachats d’actions et de dividendes. Pour l'année complète 2024, Insperity s'attend à une diminution des WSEE de 1,3 à 1,5% et prévoit un BPA ajusté de 3,42 à 3,66 dollars.
Insperity (NYSE: NSP) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Nettoergebnis von 3 Millionen Dollar und einem verwässerten Gewinn pro Aktie von 0,07 Dollar. Das Unternehmen verzeichnete einen Rückgang von 2% im Jahresvergleich bei den durchschnittlichen Arbeitsstättenmitarbeitern (WSEE) auf 309.088, während die Umsätze um 1% auf 1,6 Milliarden Dollar stiegen. Der Bruttogewinn ging um 11% auf 229 Millionen Dollar zurück, beeinflusst durch höhere Sozialkosten. Die Performance seit Jahresbeginn zeigte, dass die Umsätze trotz eines Rückgangs der WSEE um 1% um 1% auf 5,0 Milliarden Dollar gestiegen sind. Das Unternehmen gab 119 Millionen Dollar an die Aktionäre zurück, durch Aktienrückkäufe und Dividenden. Für das Gesamtjahr 2024 erwartet Insperity einen Rückgang der WSEE um 1,3-1,5% und prognostiziert einen angepassten EPS von 3,42-3,66 Dollar.
- Revenue increased 1% to $1.6 billion in Q3 2024
- Year-to-date revenue up 1% to $5.0 billion
- Returned $119 million to shareholders through buybacks and dividends
- $212 million in adjusted cash as of September 30, 2024
- $280 million available under credit facility
- Q3 net income dropped to $3 million with diluted EPS of just $0.07
- Average WSEEs decreased 2% year-over-year in Q3
- Gross profit declined 11% from Q3 2023
- Operating expenses increased 15% over Q3 2023
- Forecasting year-over-year adjusted EBITDA decrease of 23-26% for full year 2024
Insights
Insperity's Q3 results reveal concerning trends with
The guidance for Q4 2024 projects continued weakness with an expected
The small-to-medium business market uncertainty is materially impacting Insperity's growth trajectory. The loss of several midmarket accounts and continued weak hiring trends among existing clients suggest broader economic pressures affecting the HR solutions sector. While the company's strategic Workday partnership and AI initiatives could provide future growth catalysts, the immediate outlook remains challenging with forecasted declines in key metrics.
The company's pricing strategy and benefits cost management will be important factors to watch, as the full-year cost trend is expected at
-
Q3 average number of WSEEs paid within our expected range, down
2% year-over-year -
Q3 net income of
; diluted EPS of$3 million $0.07 -
Q3 adjusted EPS of
; adjusted EBITDA of$0.39 $39 million -
YTD average number of paid WSEEs down
1% , while revenues up1% -
YTD net income and diluted EPS of
and$100 million , respectively$2.63 -
YTD adjusted EBITDA and adjusted EPS of
and$247 million , respectively$3.53 -
Return to shareholders of
during the first nine months of 2024 through the repurchase of 551,000 shares at a cost of$119 million and$52 million in cash dividends$67 million
Third Quarter Results
As forecasted, the average number of worksite employees (“WSEE”) paid per month decreased
“We are pleased with our Q3 financial results, especially with a measurable headwind of uncertainty in the small to medium sized business marketplace,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We are focused on a successful fall selling and retention season to achieve a solid starting point in 2025. We see an opportunity for growth acceleration next year with sales and service improvements as we leverage our data infrastructure with AI and our Workday strategic partnership.”
An
“Our guidance includes a continued higher cost trend in Q4 compared to the favorable cost trend in the first half of 2024. We continue to expect the full year cost trend to be at the low end of our initial budgeted range of
Operating expenses increased
Reported net income and diluted earnings per share (“EPS”) were
Third quarter’s effective tax rate was positively impacted by research and development credits and contributed
Year-to-Date Results
The average number of WSEEs paid per month decreased
“Our year-to-date earnings have exceeded our initial budget as pricing, effective management of our direct cost areas and operating expense savings have more than offset lower paid worksite employees,” said Douglas S. Sharp, executive vice president of finance, chief financial officer and treasurer. “Our recent results have allowed us to continue to invest in our strategic objectives, which we believe positions us for long-term growth.”
Gross profit increased
Operating expenses increased
Reported net income and diluted EPS were
Cash outlays in the first nine months of 2024 included the repurchase of approximately 551,000 shares of our common stock at a cost of
2024 Guidance
The company also announced its updated guidance for 2024, including the fourth quarter of 2024. 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.
|
Q4 2024 |
|
Full Year 2024 |
||||
|
|
|
|
|
|
|
|
Average WSEEs paid |
308,800 |
— |
311,900 |
|
307,400 |
— |
308,100 |
Year-over-year decrease |
(2.0)% |
— |
(1.0)% |
|
(1.5)% |
— |
(1.3)% |
|
|
|
|
|
|
|
|
Adjusted EPS |
|
— |
|
|
|
— |
|
Year-over-year decrease |
(113)% |
— |
(84)% |
|
(38)% |
— |
(34)% |
|
|
|
|
|
|
|
|
Adjusted EBITDA (in millions) |
|
— |
|
|
|
— |
|
Year-over-year decrease |
(73)% |
— |
(52)% |
|
(26)% |
— |
(23)% |
Definition of Key Metrics
Average WSEEs paid — Determined by calculating the company’s cumulative WSEEs 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, amortization of SaaS implementation costs and non-cash stock-based compensation.
Conference Call and Webcast
Insperity will be hosting a conference call today at 8:30 a.m. ET to discuss these results and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 877-545-0320 and use conference i.d. number 557065. 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 877-481-4010, conference i.d. number 51466. 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 2023 revenues of
Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements within the meaning of 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,” “forecasts,” “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, including our strategic partnership with Workday, Inc.; 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 these 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;
- failure to comply with or meet client expectations regarding certain COVID-19 relief programs;
- bank failures or other events affecting financial institutions; labor shortages, increasing competition for highly skilled workers, and evolving employee expectations regarding the workplace;
- impact of inflation;
- vulnerability to regional economic factors because of our geographic market concentration;
- failure to comply with covenants under our credit facility;
- impact of a future outbreak of highly infectious or contagious disease;
- our liability for WSEE payroll, payroll taxes and benefits costs, or other liabilities associated with actions of our client companies or WSEEs, including if our clients fail to pay us;
- 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;
- an adverse determination regarding our status as the employer of our WSEEs for tax and benefit purposes and an inability to offer alternative benefit plans following such a determination;
- 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 or failure to enhance our service and technology offerings to address new regulations or client expectations;
- 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, such as financial institutions, data centers or cloud service providers;
- our ability to fully realize the anticipated benefits of our strategic partnership and plans to develop a joint solution with Workday, Inc.; and
- our ability to integrate or realize expected returns on future product offerings, including through acquisitions, strategic partnerships, and investments.
These factors are discussed in further detail in Insperity’s filings with the
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 millions) |
September 30, 2024 |
December 31, 2023 |
||||
|
|
|
||||
Assets |
|
|
||||
Cash and cash equivalents |
$ |
470 |
|
$ |
693 |
|
Restricted cash |
|
67 |
|
|
57 |
|
Marketable securities |
|
16 |
|
|
16 |
|
Accounts receivable, net |
|
765 |
|
|
694 |
|
Prepaid insurance and related assets |
|
31 |
|
|
7 |
|
Other current assets |
|
84 |
|
|
128 |
|
Total current assets |
|
1,433 |
|
|
1,595 |
|
Property and equipment, net |
|
190 |
|
|
197 |
|
Right-of-use leased assets |
|
66 |
|
|
57 |
|
Deposits and prepaid health insurance |
|
192 |
|
|
215 |
|
Goodwill and other intangible assets, net |
|
13 |
|
|
13 |
|
Deferred income taxes, net |
|
19 |
|
|
20 |
|
Other assets |
|
20 |
|
|
23 |
|
Total assets |
$ |
1,933 |
|
$ |
2,120 |
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|
||||
Accounts payable |
$ |
6 |
|
$ |
11 |
|
Payroll taxes and other payroll deductions payable |
|
297 |
|
|
566 |
|
Accrued worksite employee payroll cost |
|
650 |
|
|
559 |
|
Accrued health insurance costs |
|
46 |
|
|
46 |
|
Accrued workers’ compensation costs |
|
70 |
|
|
60 |
|
Accrued corporate payroll and commissions |
|
79 |
|
|
64 |
|
Other accrued liabilities |
|
85 |
|
|
130 |
|
Total current liabilities |
|
1,233 |
|
|
1,436 |
|
Accrued workers’ compensation costs, net of current |
|
140 |
|
|
163 |
|
Long-term debt |
|
369 |
|
|
369 |
|
Operating lease liabilities, net of current |
|
66 |
|
|
58 |
|
Total noncurrent liabilities |
|
575 |
|
|
590 |
|
Stockholders’ equity: |
|
|
||||
Common stock |
|
1 |
|
|
1 |
|
Additional paid-in capital |
|
208 |
|
|
185 |
|
Treasury stock, at cost |
|
(853 |
) |
|
(831 |
) |
Retained earnings |
|
769 |
|
|
739 |
|
Total stockholders' equity |
|
125 |
|
|
94 |
|
Total liabilities and stockholders’ equity |
$ |
1,933 |
|
$ |
2,120 |
|
Insperity, Inc. |
|||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
(Unaudited) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||
(in millions, except per share amounts) |
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Operating results: |
|
|
|
|
|
|
|
||||||||||
Revenues(1) |
$ |
1,561 |
|
$ |
1,551 |
|
1 |
% |
|
$ |
4,968 |
|
$ |
4,906 |
|
1 |
% |
Payroll taxes, benefits and workers’ compensation costs |
|
1,332 |
|
|
1,293 |
|
3 |
% |
|
|
4,134 |
|
|
4,091 |
|
1 |
% |
Gross profit |
|
229 |
|
|
258 |
|
(11 |
)% |
|
|
834 |
|
|
815 |
|
2 |
% |
Salaries, wages and payroll taxes |
|
127 |
|
|
114 |
|
11 |
% |
|
|
393 |
|
|
349 |
|
13 |
% |
Stock-based compensation |
|
17 |
|
|
16 |
|
6 |
% |
|
|
47 |
|
|
42 |
|
12 |
% |
Commissions |
|
11 |
|
|
11 |
|
— |
|
|
|
34 |
|
|
34 |
|
— |
|
Advertising |
|
9 |
|
|
7 |
|
29 |
% |
|
|
28 |
|
|
30 |
|
(7 |
)% |
General and administrative expenses |
|
53 |
|
|
40 |
|
33 |
% |
|
|
167 |
|
|
132 |
|
27 |
% |
Depreciation and amortization |
|
11 |
|
|
11 |
|
— |
|
|
|
33 |
|
|
32 |
|
3 |
% |
Total operating expenses |
|
228 |
|
|
199 |
|
15 |
% |
|
|
702 |
|
|
619 |
|
13 |
% |
Operating income |
|
1 |
|
|
59 |
|
(98 |
)% |
|
|
132 |
|
|
196 |
|
(33 |
)% |
Other income (expense): |
|
|
|
|
|
|
|
||||||||||
Interest income |
|
9 |
|
|
9 |
|
— |
|
|
|
28 |
|
|
25 |
|
12 |
% |
Interest expense |
|
(7 |
) |
|
(7 |
) |
— |
|
|
|
(21 |
) |
|
(20 |
) |
5 |
% |
Income before income tax expense |
|
3 |
|
|
61 |
|
(95 |
)% |
|
|
139 |
|
|
201 |
|
(31 |
)% |
Income tax expense |
|
— |
|
|
16 |
|
(100 |
)% |
|
|
39 |
|
|
49 |
|
(20 |
)% |
Net income |
$ |
3 |
|
$ |
45 |
|
(93 |
)% |
|
$ |
100 |
|
$ |
152 |
|
(34 |
)% |
|
|
|
|
|
|
|
|
||||||||||
Net income per share of common stock |
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.07 |
|
$ |
1.17 |
|
(94 |
)% |
|
$ |
2.65 |
|
$ |
4.00 |
|
(34 |
)% |
Diluted |
$ |
0.07 |
|
$ |
1.16 |
|
(94 |
)% |
|
$ |
2.63 |
|
$ |
3.94 |
|
(33 |
)% |
____________________________________ |
|||||||||||||||||
(1) Revenues are comprised of gross billings less WSEE payroll costs as follows: |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||
(in millions) |
2024 |
2023 |
|
2024 |
2023 |
||||
|
|
|
|
|
|
||||
Gross billings |
$ |
10,291 |
$ |
10,067 |
|
$ |
32,135 |
$ |
31,763 |
Less: WSEE payroll cost |
|
8,730 |
|
8,516 |
|
|
27,167 |
|
26,857 |
Revenues |
$ |
1,561 |
$ |
1,551 |
|
$ |
4,968 |
$ |
4,906 |
Insperity, Inc. |
|||||||||||||
KEY FINANCIAL AND STATISTICAL DATA |
|||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||
|
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
||||||
|
|
|
|
|
|
|
|
||||||
Average WSEEs paid |
|
309,088 |
|
315,340 |
(2 |
)% |
|
|
306,650 |
|
311,112 |
(1 |
)% |
|
|
|
|
|
|
|
|
||||||
Statistical data (per WSEE per month): |
|
|
|
|
|
|
|
||||||
Revenues(1) |
$ |
1,683 |
$ |
1,639 |
3 |
% |
|
$ |
1,800 |
$ |
1,752 |
3 |
% |
Gross profit |
|
247 |
|
273 |
(10 |
)% |
|
|
302 |
|
291 |
4 |
% |
Operating expenses |
|
246 |
|
210 |
17 |
% |
|
|
254 |
|
221 |
15 |
% |
Operating income |
|
1 |
|
63 |
(98 |
)% |
|
|
48 |
|
70 |
(31 |
)% |
Net income |
|
3 |
|
47 |
(94 |
)% |
|
|
36 |
|
54 |
(33 |
)% |
____________________________________ |
|||||||||||||
(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 September 30, |
|
Nine Months Ended September 30, |
||||||
(per WSEE per month) |
2024 |
2023 |
|
2024 |
2023 |
||||
|
|
|
|
|
|
||||
Gross billings |
$ |
11,098 |
$ |
10,642 |
|
$ |
11,644 |
$ |
11,344 |
Less: WSEE payroll cost |
|
9,415 |
|
9,003 |
|
|
9,844 |
|
9,592 |
Revenues |
$ |
1,683 |
$ |
1,639 |
|
$ |
1,800 |
$ |
1,752 |
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, • depreciation and amortization expense, and • amortization of SaaS implementation costs. |
|
|
|
|
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
(in millions, except per WSEE per month) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
|
Per WSEE |
|
|
Per WSEE |
|
|
Per WSEE |
|
|
Per WSEE |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Payroll cost |
$ |
8,730 |
|
$ |
9,415 |
|
|
$ |
8,516 |
|
$ |
9,003 |
|
|
$ |
27,167 |
|
$ |
9,844 |
|
|
$ |
26,857 |
|
$ |
9,592 |
|
Less: Bonus payroll cost |
|
704 |
|
|
759 |
|
|
|
529 |
|
|
560 |
|
|
|
3,411 |
|
|
1,236 |
|
|
|
3,344 |
|
|
1,195 |
|
Non-bonus payroll cost |
$ |
8,026 |
|
$ |
8,656 |
|
|
$ |
7,987 |
|
$ |
8,443 |
|
|
$ |
23,756 |
|
$ |
8,608 |
|
|
$ |
23,513 |
|
$ |
8,397 |
|
Payroll cost % change period over period |
|
3 |
% |
|
5 |
% |
|
|
5 |
% |
|
1 |
% |
|
|
1 |
% |
|
3 |
% |
|
|
9 |
% |
|
2 |
% |
Non-bonus payroll cost % change period over period |
|
— |
|
|
3 |
% |
|
|
6 |
% |
|
2 |
% |
|
|
1 |
% |
|
3 |
% |
|
|
10 |
% |
|
3 |
% |
Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):
(in millions) |
September 30,
|
|
December 31,
|
||
|
|
||||
Cash, cash equivalents and marketable securities |
$ |
486 |
|
$ |
709 |
Less: |
|
|
|
||
Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions |
|
255 |
|
|
510 |
Client prepayments |
|
19 |
|
|
28 |
Adjusted cash, cash equivalents and marketable securities |
$ |
212 |
|
$ |
171 |
Following is a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):
(in millions, except per WSEE per month) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||||||||
|
Per WSEE |
|
|
Per WSEE |
|
|
Per WSEE |
|
|
Per WSEE |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income |
$ |
3 |
|
$ |
3 |
|
|
$ |
45 |
|
$ |
47 |
|
|
$ |
100 |
|
$ |
36 |
|
|
$ |
152 |
|
$ |
54 |
|
Income tax expense |
|
— |
|
|
— |
|
|
|
16 |
|
|
19 |
|
|
|
39 |
|
|
13 |
|
|
|
49 |
|
|
18 |
|
Interest expense |
|
7 |
|
|
8 |
|
|
|
7 |
|
|
7 |
|
|
|
21 |
|
|
8 |
|
|
|
20 |
|
|
7 |
|
Amortization of SaaS implementation costs |
|
1 |
|
|
1 |
|
|
|
— |
|
|
— |
|
|
|
7 |
|
|
3 |
|
|
|
3 |
|
|
1 |
|
Depreciation and amortization |
|
11 |
|
|
12 |
|
|
|
11 |
|
|
11 |
|
|
|
33 |
|
|
12 |
|
|
|
32 |
|
|
11 |
|
EBITDA |
|
22 |
|
|
24 |
|
|
|
79 |
|
|
84 |
|
|
|
200 |
|
|
72 |
|
|
|
256 |
|
|
91 |
|
Stock-based compensation |
|
17 |
|
|
18 |
|
|
|
16 |
|
|
16 |
|
|
|
47 |
|
|
17 |
|
|
|
42 |
|
|
15 |
|
Adjusted EBITDA |
$ |
39 |
|
$ |
42 |
|
|
$ |
95 |
|
$ |
100 |
|
|
$ |
247 |
|
$ |
89 |
|
|
$ |
298 |
|
$ |
106 |
|
Net income % change period over period |
|
(93 |
)% |
|
(94 |
)% |
|
|
18 |
% |
|
15 |
% |
|
|
(34 |
)% |
|
(33 |
)% |
|
|
8 |
% |
|
— |
|
Adjusted EBITDA % change period over period |
|
(59 |
)% |
|
(58 |
)% |
|
|
18 |
% |
|
14 |
% |
|
|
(17 |
)% |
|
(16 |
)% |
|
|
9 |
% |
|
2 |
% |
Following is a reconciliation of net income (GAAP) to adjusted net income (non-GAAP):
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||
(in millions) |
2024 |
2023 |
|
2024 |
2023 |
||||||||
|
|
|
|
|
|
||||||||
Net income |
$ |
3 |
|
$ |
45 |
|
|
$ |
100 |
|
$ |
152 |
|
Non-GAAP adjustments: |
|
|
|
|
|
||||||||
Stock-based compensation |
|
17 |
|
|
16 |
|
|
|
47 |
|
|
42 |
|
Tax effect |
|
(5 |
) |
|
(6 |
) |
|
|
(13 |
) |
|
(11 |
) |
Total non-GAAP adjustments, net |
|
12 |
|
|
10 |
|
|
|
34 |
|
|
31 |
|
Adjusted net income |
$ |
15 |
|
$ |
55 |
|
|
$ |
134 |
|
$ |
183 |
|
Net income % change period over period |
|
(93 |
)% |
|
18 |
% |
|
|
(34 |
)% |
|
8 |
% |
Adjusted net income % change period over period |
|
(73 |
)% |
|
17 |
% |
|
|
(27 |
)% |
|
8 |
% |
Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||
|
|
|
|
|
|
||||||||
Diluted EPS |
$ |
0.07 |
|
$ |
1.16 |
|
|
$ |
2.63 |
|
$ |
3.94 |
|
Non-GAAP adjustments: |
|
|
|
|
|
||||||||
Stock-based compensation |
|
0.45 |
|
|
0.40 |
|
|
|
1.24 |
|
|
1.08 |
|
Tax effect |
|
(0.13 |
) |
|
(0.10 |
) |
|
|
(0.34 |
) |
|
(0.26 |
) |
Total non-GAAP adjustments, net |
|
0.32 |
|
|
0.30 |
|
|
|
0.90 |
|
|
0.82 |
|
Adjusted EPS |
$ |
0.39 |
|
$ |
1.46 |
|
|
$ |
3.53 |
|
$ |
4.76 |
|
Diluted EPS % change period over period |
|
(94 |
)% |
|
18 |
% |
|
|
(33 |
)% |
|
8 |
% |
Adjusted EPS % change period over period |
|
(73 |
)% |
|
19 |
% |
|
|
(26 |
)% |
|
9 |
% |
The following is a reconciliation of GAAP to non-GAAP financial measures for fourth quarter and full year 2024 guidance:
|
Q4 2024 |
|
Full Year 2024 |
||
(in millions, except per share amounts) |
Guidance |
|
Guidance |
||
|
|
|
|
||
Net income |
|
) |
|
|
|
Income tax expense |
(6) - (2 |
) |
|
33 - 36 |
|
Interest expense |
7 |
|
|
28 |
|
SaaS implementation amortization |
3 |
|
|
11 |
|
Depreciation and amortization |
10 |
|
|
43 |
|
EBITDA |
1 - 13 |
|
|
201 - 213 |
|
Stock-based compensation |
14 |
|
|
61 |
|
Adjusted EBITDA |
|
|
|
||
|
|
|
|
||
Diluted EPS |
|
) |
|
|
|
Non-GAAP adjustments: |
|
|
|
||
Stock-based compensation |
0.37 |
|
|
1.61 |
|
Tax effect |
(0.11 |
) |
|
(0.45 |
) |
Total non-GAAP adjustments, net |
0.26 |
|
|
1.16 |
|
Adjusted EPS |
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031660748/en/
Investor Relations Contact:
Douglas S. Sharp
Executive Vice President of Finance,
Chief Financial Officer and Treasurer
281-348-3232
Investor.Relations@Insperity.com
News Media Contact:
Cynthia Murga
Director, Public Relations
713-324-1414
Media@insperity.com
Source: Insperity, Inc.
FAQ
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