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Insperity Announces Strong 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 June 30, 2022. Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and our updated 2022 outlook, and has posted an accompanying presentation to its investor website at http://ir.insperity.com.

  • Q2 average number of WSEEs paid and revenues up 19% and 21%, respectively
  • Q2 net income and diluted EPS of $33.6 million and $0.87, respectively
  • Q2 adjusted EBITDA up 25% to $75.0 million
  • Q2 adjusted EPS up 27% to $1.16

Second Quarter Results

For the second quarter of 2022, reported net income and diluted earnings per share (“EPS”) were $33.6 million and $0.87, respectively. Adjusted EPS increased 27.5% compared to the second quarter of 2021 to $1.16. Adjusted EBITDA increased 24.6% over the second quarter of 2021 to $75.0 million.

The average number of worksite employees (“WSEEs”) paid per month increased 19.4% over Q2 2021 to 290,507 WSEEs. WSEEs paid from new client sales and the net gain (loss) in our client base improved over Q2 2021. Client retention remained strong, averaging 99% per month for the quarter and our clients continued to experience robust hiring through Q2 in spite of the tight labor market. Revenues in Q2 2022 increased 20.8% to $1.4 billion on the 19.4% increase in paid WSEEs and a 1.2% increase in revenue per WSEE.

“Our impressive 19% growth in paid worksite employees over the first half of 2021 reflects strong demand for our services, combined with excellent sales and service execution and has led to achieving a milestone of over 300,000 paid worksite employees as we begin Q3,” said Paul J. Sarvadi, Insperity chief executive officer and chairman. “These results represent a very strong start to our recently adopted five-year plan for growth, profitability, and exceptional shareholder returns. We believe that Insperity is well positioned to support the small and medium size business community through whatever economic conditions are experienced in the years ahead.”

Gross profit increased 20.2% over Q2 2021 to $239.9 million on the 19.4% increase in paid WSEEs, combined with higher-than-expected contributions from each of our direct cost programs and our traditional employment offering. COVID related costs and overall utilization of our health plan fell below forecasted levels. Workers’ compensation costs also declined on effective claims management, and to a lesser extent, on the favorable impact of higher interest rates. As expected, payroll taxes increased on higher payroll volume and the non-recurrence of the Q2 2021 collection of $11.3 million in federal payroll tax refunds related to prior years.

Operating expenses increased 16.5% over Q2 2021 and included continued investment in our personnel given our high growth and a focus on hiring and retention in the current tight labor market. Other operating spend included continued investment in marketing initiatives and technology. Travel and event costs also increased over the prior year’s period which was more restrictive under the pandemic conditions. Operating expense per WSEE per month decreased from $225 in Q2 2021 to $220 in Q2 2022 demonstrating overall operating leverage while further investing in the growth of the business.

Year-to-Date Results

Revenues for the first six months of 2022 increased 21.8% to $3.0 billion on a 19.5% increase in paid worksite employees and a 1.9% increase in revenue per WSEE. Gross profit for the first six months of 2022 increased 16.6% to $525.6 million. Operating expenses increased 14.1% to $378.9 million compared to the 2021 period.

For the six months ended June 30, 2022, reported net income and diluted EPS were $103.5 million and $2.68, respectively. Adjusted EPS increased 15.8% compared to the first six months of 2021 to $3.15. Adjusted EBITDA increased 17.7% compared to the first six months of 2021 to $193.6 million.

Net income per WSEE per month was $61 in both periods. Adjusted EBITDA per WSEE per month was $113 in the 2022 period compared to $115 in the 2021 period.

Gross profit and earnings comparisons are impacted by the non-recurrence of $16.8 million in federal payroll tax refunds received in 2021 related to prior years.

Cash outlays in the first six months of 2022 included the repurchase of approximately 616,000 shares of stock at a cost of $56.8 million, dividends totaling $37.1 million and capital expenditures of $9.0 million. Adjusted cash totaled $167 million at June 30, 2022 and $280 million is available under our recently expanded $650 million credit facility.

“We have raised our earnings outlook coming off of our outperformance over the first half of the year and continued growth momentum driving our positive outlook,” said Douglas S. Sharp, Insperity executive vice president of finance, chief financial officer and treasurer. “We continue to closely monitor the impact of the pandemic, the tight labor market and the possibility of an economic slowdown on our business. At this point, our key internal client metrics remain strong.”

2022 Guidance

The company also announced its updated guidance for 2022, including the third quarter of 2022. 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 2022

 

Full Year 2022

 

 

 

 

 

 

 

 

Average WSEEs paid

301,300

303,900

 

294,600

297,200

Year-over-year increase

17%

18%

 

17.5%

18.5%

 

 

 

 

 

 

 

 

Adjusted EPS

$0.83

$1.06

 

$4.68

$5.25

Year-over-year increase (decrease)

(7)%

19%

 

18%

33%

 

 

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$59

$71

 

$305

$335

Year-over-year increase (decrease)

(2)%

18%

 

20%

31%

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 and non-cash stock-based compensation.

Conference Call and Webcast

Insperity will be hosting a conference call today at 5:00 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 888-506-0062 and use conference i.d. number 990230. 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. 46200, for one week after the call. 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 2021 revenues of $5.0 billion and more than 90 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;
  • labor shortages and increasing competition for highly skilled workers;
  • impact of inflation;
  • vulnerability to regional economic factors because of our geographic market concentration;
  • failure to comply with covenants under our credit facility;
  • our liability for WSEE payroll, payroll taxes and benefits costs, or other liabilities associated with actions of our client companies or WSEEs;
  • 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, 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, 2022

 

December 31, 2021

 

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

510,869

 

 

$

575,812

 

Restricted cash

 

53,329

 

 

 

46,929

 

Marketable securities

 

30,781

 

 

 

31,791

 

Accounts receivable, net

 

685,857

 

 

 

513,306

 

Prepaid insurance

 

52,939

 

 

 

11,285

 

Other current assets

 

71,186

 

 

 

53,312

 

Income taxes receivable

 

5,684

 

 

 

12,413

 

Total current assets

 

1,410,645

 

 

 

1,244,848

 

Property and equipment, net

 

199,322

 

 

 

210,723

 

Right of use leased assets

 

59,149

 

 

 

62,830

 

Prepaid health insurance

 

9,000

 

 

 

9,000

 

Deposits

 

173,977

 

 

 

192,927

 

Goodwill and other intangible assets, net

 

12,707

 

 

 

12,707

 

Deferred income taxes, net

 

 

 

 

4,892

 

Other assets

 

28,106

 

 

 

15,158

 

Total assets

$

1,892,906

 

 

$

1,753,085

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

Accounts payable

$

6,034

 

 

$

6,412

 

Payroll taxes and other payroll deductions payable

 

303,645

 

 

 

467,892

 

Accrued worksite employee payroll cost

 

662,762

 

 

 

409,653

 

Accrued health insurance costs

 

62,643

 

 

 

50,001

 

Accrued workers’ compensation costs

 

58,142

 

 

 

50,534

 

Accrued corporate payroll and commissions

 

69,775

 

 

 

74,778

 

Other accrued liabilities

 

83,599

 

 

 

69,303

 

Total current liabilities

 

1,246,600

 

 

 

1,128,573

 

Accrued workers’ compensation cost, net of current

 

173,686

 

 

 

192,694

 

Long-term debt

 

369,400

 

 

 

369,400

 

Operating lease liabilities, net of current

 

58,916

 

 

 

64,192

 

Deferred income taxes, net

 

9,172

 

 

 

 

Total noncurrent liabilities

 

611,174

 

 

 

626,286

 

Stockholders’ equity:

 

 

 

Common stock

 

555

 

 

 

555

 

Additional paid-in capital

 

125,622

 

 

 

109,179

 

Treasury stock, at cost

 

(709,810

)

 

 

(665,089

)

Retained earnings

 

618,765

 

 

 

553,581

 

Total stockholders’ equity (deficit)

 

35,132

 

 

 

(1,774

)

Total liabilities and stockholders’ equity

$

1,892,906

 

 

$

1,753,085

 

Insperity, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

(in thousands, except per share amounts)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

 

2021

 

Change

 

 

2022

 

 

2021

 

Change

Operating results:

 

 

 

 

 

 

 

Revenues(1)

$

1,432,107

 

$

1,185,371

 

20.8

%

 

$

3,009,944

 

$

2,472,206

 

21.8

%

Payroll taxes, benefits and workers’ compensation costs

 

1,192,239

 

 

985,817

 

20.9

%

 

 

2,484,302

 

 

2,021,207

 

22.9

%

Gross profit

 

239,868

 

 

199,554

 

20.2

%

 

 

525,642

 

 

450,999

 

16.6

%

Salaries, wages and payroll taxes

 

106,522

 

 

94,362

 

12.9

%

 

 

213,961

 

 

197,437

 

8.4

%

Stock-based compensation

 

15,631

 

 

13,781

 

13.4

%

 

 

25,477

 

 

25,603

 

(0.5

)%

Commissions

 

10,743

 

 

8,251

 

30.2

%

 

 

21,053

 

 

15,970

 

31.8

%

Advertising

 

12,427

 

 

8,975

 

38.5

%

 

 

21,022

 

 

14,297

 

47.0

%

General and administrative expenses

 

36,095

 

 

29,211

 

23.6

%

 

 

77,100

 

 

60,847

 

26.7

%

Depreciation and amortization

 

10,100

 

 

9,751

 

3.6

%

 

 

20,284

 

 

17,798

 

14.0

%

Total operating expenses

 

191,518

 

 

164,331

 

16.5

%

 

 

378,897

 

 

331,952

 

14.1

%

Operating income

 

48,350

 

 

35,223

 

37.3

%

 

 

146,745

 

 

119,047

 

23.3

%

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

945

 

 

1,436

 

(34.2

)%

 

 

1,093

 

 

1,979

 

(44.8

)%

Interest expense

 

(2,691

)

 

(1,975

)

36.3

%

 

 

(4,616

)

 

(3,574

)

29.2

%

Income before income tax expense

 

46,604

 

 

34,684

 

34.4

%

 

 

143,222

 

 

117,452

 

21.9

%

Income tax expense

 

13,005

 

 

9,530

 

36.5

%

 

 

39,739

 

 

30,376

 

30.8

%

Net income

$

33,599

 

$

25,154

 

33.6

%

 

$

103,483

 

$

87,076

 

18.8

%

Less distributed and undistributed earnings allocated to participating securities

 

(1

)

 

(37

)

(97.3

)%

 

 

(31

)

 

(193

)

(83.9

)%

Net income allocated to common shares

$

33,598

 

$

25,117

 

33.8

%

 

$

103,452

 

$

86,883

 

19.1

%

 

 

 

 

 

 

 

 

Net income per share of common stock

 

 

 

 

 

 

Basic

$

0.88

 

$

0.65

 

35.4

%

 

$

2.70

 

$

2.26

 

19.5

%

Diluted

$

0.87

 

$

0.65

 

33.8

%

 

$

2.68

 

$

2.24

 

19.6

%

____________________________________

(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)

 

2022

 

2021

 

 

2022

 

2021

 

 

 

 

 

 

Gross billings

$

9,224,643

$

7,637,851

 

$

19,582,548

$

15,688,273

Less: WSEE payroll cost

 

7,792,536

 

6,452,480

 

 

16,572,604

 

13,216,067

Revenues

$

1,432,107

$

1,185,371

 

$

3,009,944

$

2,472,206

Insperity, Inc.

KEY FINANCIAL AND STATISTICAL DATA

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

Change

 

 

2022

 

2021

Change

 

 

 

 

 

 

 

 

Average WSEEs paid

 

290,507

 

243,270

19.4

%

 

 

284,583

 

238,220

19.5

%

Statistical data (per WSEE per month):

 

 

 

 

 

 

 

Revenues(1)

$

1,643

$

1,624

1.2

%

 

$

1,763

$

1,730

1.9

%

Gross profit

 

275

 

273

0.7

%

 

 

308

 

316

(2.5

)%

Operating expenses

 

220

 

225

(2.2

)%

 

 

222

 

232

(4.3

)%

Operating income

 

55

 

48

14.6

%

 

 

86

 

83

3.6

%

Net income

 

39

 

34

14.7

%

 

 

61

 

61

 

____________________________________

(1) Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month as follows:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(per WSEE per month)

 

2022

 

2021

 

 

2022

 

2021

Gross billings

$

10,585

$

10,466

 

$

11,469

$

10,976

Less: WSEE payroll cost

 

8,942

 

8,842

 

 

9,706

 

9,246

Revenues

$

1,643

$

1,624

 

$

1,763

$

1,730

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 June 30,

 

Six Months Ended June 30,

(in thousands, except per WSEE per month)

2022

 

2021

 

2022

 

2021

 

Per

WSEE

 

 

Per

WSEE

 

 

Per

WSEE

 

 

Per

WSEE

 

 

 

 

 

 

 

 

 

 

 

 

Payroll cost

$

7,792,536

 

$

8,942

 

 

$

6,452,480

 

$

8,842

 

 

$

16,572,604

 

$

9,706

 

 

$

13,216,067

 

$

9,246

 

Less: Bonus payroll cost

 

668,503

 

 

767

 

 

 

796,154

 

 

1,092

 

 

 

2,652,356

 

 

1,553

 

 

 

2,216,629

 

 

1,551

 

Non-bonus payroll cost

$

7,124,033

 

$

8,175

 

 

$

5,656,326

 

$

7,750

 

 

$

13,920,248

 

$

8,153

 

 

$

10,999,438

 

$

7,695

 

% Change period over period

 

25.9

%

 

5.5

%

 

 

15.2

%

 

7.9

%

 

 

26.6

%

 

6.0

%

 

 

9.3

%

 

6.8

%

 

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, 2022

 

December 31,

2021

 

 

 

 

Cash, cash equivalents and marketable securities

$

541,650

 

$

607,603

Less:

 

 

 

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

 

258,180

 

 

424,800

Client prepayments

 

116,646

 

 

20,054

Adjusted cash, cash equivalents and marketable securities

$

166,824

 

$

162,749

 

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,

2022

 

2021

 

 

2022

 

2021

 

Per

WSEE

 

 

Per

WSEE

 

 

Per

WSEE

 

 

Per

WSEE

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

33,599

 

$

39

 

 

$

25,154

 

$

34

 

 

$

103,483

 

$

61

 

 

$

87,076

 

$

61

 

Income tax expense

 

13,005

 

 

15

 

 

 

9,530

 

 

13

 

 

 

39,739

 

 

23

 

 

 

30,376

 

 

21

 

Interest expense

 

2,691

 

 

3

 

 

 

1,975

 

 

3

 

 

 

4,616

 

 

3

 

 

 

3,574

 

 

3

 

Depreciation and amortization

 

10,100

 

 

11

 

 

 

9,751

 

 

14

 

 

 

20,284

 

 

11

 

 

 

17,798

 

 

12

 

EBITDA

 

59,395

 

 

68

 

 

 

46,410

 

 

64

 

 

 

168,122

 

 

98

 

 

 

138,824

 

 

97

 

Stock-based compensation

 

15,631

 

 

18

 

 

 

13,781

 

 

18

 

 

 

25,477

 

 

15

 

 

 

25,603

 

 

18

 

Adjusted EBITDA

$

75,026

 

$

86

 

 

$

60,191

 

$

82

 

 

$

193,599

 

$

113

 

 

$

164,427

 

$

115

 

% Change period over period

 

24.6

%

 

4.9

%

 

 

(34.5

)%

 

(39.3

)%

 

 

17.7

%

 

(1.7

)%

 

 

(14.9

)%

 

(16.7

)%

 

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)

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

Net income

$

33,599

 

$

25,154

 

 

$

103,483

 

$

87,076

 

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation

 

15,631

 

 

13,781

 

 

 

25,477

 

 

25,603

 

Total non-GAAP adjustments

 

15,631

 

 

13,781

 

 

 

25,477

 

 

25,603

 

Tax effect

 

(4,345

)

 

(3,643

)

 

 

(7,069

)

 

(6,621

)

Total non-GAAP adjustments, net

 

11,286

 

 

10,138

 

 

 

18,408

 

 

18,982

 

Adjusted net income

$

44,885

 

$

35,292

 

 

$

121,891

 

$

106,058

 

% Change period over period

 

27.2

%

 

(40.8

)%

 

 

14.9

%

 

(16.2

)%

 

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

Diluted EPS

$

0.87

 

$

0.65

 

 

$

2.68

 

$

2.24

 

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation

 

0.41

 

 

0.35

 

 

 

0.66

 

 

0.66

 

Total non-GAAP adjustments

 

0.41

 

 

0.35

 

 

 

0.66

 

 

0.66

 

Tax effect

 

(0.12

)

 

(0.09

)

 

 

(0.19

)

 

(0.18

)

Total non-GAAP adjustments, net

$

0.29

 

$

0.26

 

 

$

0.47

 

$

0.48

 

Adjusted EPS

$

1.16

 

$

0.91

 

 

$

3.15

 

$

2.72

 

% Change period over period

 

27.5

%

 

(40.9

)%

 

 

15.8

%

 

(16.0

)%

 

Following is a reconciliation of GAAP to non-GAAP financial measures for third quarter and full year 2022 guidance:

(in millions, except per share amounts)

 

Q3 2022 Guidance

 

Full Year 2022 Guidance

 

 

 

 

 

Net income

 

$23 - $32

 

$145 - $167

Income tax expense

 

9 - 12

 

56 - 64

Interest expense

 

3

 

11

Depreciation and amortization

 

10

 

42

Amortization of SaaS implementation costs

 

1

 

2

EBITDA

 

46 - 58

 

256 - 286

Stock-based compensation

 

13

 

49

Adjusted EBITDA

 

$59 - $71

 

$305 - $335

 

 

 

 

 

Diluted net income per share of common stock

 

$0.58 - $0.81

 

$3.76 - $4.33

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

0.34

 

1.27

Tax effect

 

(0.09)

 

(0.35)

Total non-GAAP adjustments, net

 

0.25

 

0.92

Adjusted EPS

 

$0.83 - $1.06

 

$4.68 - $5.25

 

Contacts

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:

Larry Shaffer

SVP of Marketing and Business Development

(281) 312-3020

Media@Insperity.com

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