Earnings release
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Exhibit 99.1 Insperity Announces Third Quarter Results HOUSTON - Nov. 1 , 2021 – Insperity , Inc. ( NYSE : NSP ) , a leading provider of human resources and business performance solutions for America's best businesses , today reported results for the third quarter ended Sep. 30 , 2021 : Q3 average number of WSEES paid and revenues up 11 % and 20 % , respectively • • Q3 net income and diluted EPS of $ 27.3 million and $ 0.70 , respectively Q3 adjusted EBITDA and adjusted EPS of $ 60.1 million and $ 0.89 , respectively • YTD net income and diluted EPS of $ 114.4 million and $ 2.94 , respectively • YTD adjusted EBITDA and adjusted EPS of $ 224.6 million and $ 3.62 , respectively Third Quarter Results The average number of worksite employees ( " WSEES " ) paid per month in Q3 2021 increased 11 % to 257,560 WSEEs . Net gains from hiring in our client base , combined with WSEES paid from new sales and client retention at our historical high level of 99 % for the quarter , drove the accelerated growth above the high end of our expectations . Revenues in Q3 2021 increased 20 % to $ 1.2 billion on the 11 % increase in paid worksite employees and an 8 % increase in revenue per WSEE , which reflects a 4 % increase in pricing and the non - recurrence of the 2020 FICA deferral credits instituted as part of the CARES Act . " We are pleased with our solid financial results and our return to double - digit unit growth in Q3 , " said Paul J. Sarvadi , Insperity chief executive officer and chairman . " Strong demand for our services , combined with solid execution from our dedicated employees , positions Insperity to continue growth acceleration into 2022. " Gross profit increased 7.3 % over Q3 2020 to $ 198.5 million . This higher than expected increase resulted from the higher than anticipated paid WSEES and pricing , combined with favorable results from our workers ' compensation program and payroll tax area . In Q3 2021 , benefits costs continued to reflect the dynamics of the pandemic , including increased utilization of our health plan and COVID - 19 related vaccination , testing and treatment costs . Operating expenses in Q3 2021 increased only 2 % over Q3 2020 and included a decrease in stock - based compensation from a change in our annual incentive plan . Cash operating expenses increased 9 % and included an increase in marketing costs associated with lead generation activity and SalesForce implementation costs , combined with ongoing operating expense management . For Q3 2021 , reported net income and diluted earnings per share ( " EPS " ) were $ 27.3 million and $ 0.70 , respectively . Adjusted EBITDA increased 4 % to $ 60.1 million and adjusted EPS decreased 2 % to $ 0.89 . Year - to - Date Results Revenues for the first nine months of 2021 increased 14 % to $ 3.7 billion on a 5 % increase in paid worksite employees and an 8 % increase in revenue per WSEE . Gross profit for the first nine months of 2021 increased 2 % to $ 649.5 million . Operating expenses increased 9 % to $ 490.8 million compared to the 2020 period . For the nine months ended September 30 , 2021 , reported net income and diluted EPS were $ 114.4 million and $ 2.94 , respectively . Adjusted EPS decreased 13 % compared to the first nine months of 2020 to $ 3.62 reflecting the unusually low benefits costs in the prior year due primarily to the deferral of care at the onset of the pandemic . Adjusted EBITDA decreased 10 % compared to the first nine months of 2020 to $ 224.6 million . Net income per WSEE per month decreased 19 % from $ 64 in the 2020 period to $ 52 in the 2021 period . Adjusted EBITDA per WSEE per month decreased 15 % from $ 120 in the 2020 period to $ 102 in the 2021 period .