Insperity Announces Record Fourth Quarter and Full Year 2022 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 fourth quarter and year ended Dec. 31, 2022. Insperity will be hosting a conference call today at 9 a.m. ET to discuss these results and our 2023 outlook, and has posted an accompanying presentation to its investor website at http://ir.insperity.com.
- Q4 average number of WSEEs paid and revenues up 14% and 15%, respectively
- Q4 net income and diluted EPS of $38.2 million and $0.99, respectively
- Q4 adjusted EBITDA and adjusted EPS of $78.9 million and $1.21, respectively
- 2022 average number of paid WSEEs and revenues up 18% and 19%, respectively
- 2022 net income up 45% to $179.4 million; diluted EPS up 46% to $4.64
- 2022 adjusted EBITDA up 38% to $352.3 million; adjusted EPS up 42% to $5.59
Fourth Quarter Results
Reported net income and diluted earnings per share (“EPS”) were $38.2 million and $0.99, respectively. Adjusted EBITDA and adjusted EPS were $78.9 million and $1.21, respectively.
“We are very pleased to report record results in growth and profitability in 2022 reflecting our proven business model, our balanced approach and our outstanding execution across the company,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “While there is some economic uncertainty on the horizon, we believe that we are positioned well to achieve our 2023 targets and continue to capitalize on the strong demand for our services.”
The average number of worksite employees (“WSEE”) paid per month increased 14.3% over Q4 2021 to 307,506 WSEEs. Client retention remained strong, averaging 99% per month for the quarter and new client sales improved over Q4 2021. The net gain in our client base continued, although below expected levels and significantly below Q4 2021, a period when many clients were rehiring employees as the pandemic conditions improved. Revenues in Q4 2022 increased 15.4% to $1.5 billion on the 14.3% increase in paid WSEEs. Revenue per WSEE was up 0.9% as overall pricing was managed to targeted levels.
Gross profit increased 41.3% over Q4 2021 to $241.0 million on the 14.3% increase in paid WSEEs and a 23.7% increase in gross profit per WSEE per month, driven primarily by lower benefit costs. COVID-related costs continued to decline, while also not experiencing a notable increase in healthcare utilization associated with any previously deferred care. Other areas of gross profit, including pricing and contributions from our payroll tax and workers’ compensation areas came in near expected levels.
Operating expenses increased 22.0% over Q4 2021 on the 41.3% increase in gross profit. Operating spend included continued investment in our service personnel given our high growth and a focus on hiring and retention in the current tight labor market. Additionally, we experienced an increase in sales commissions tied to programs surrounding our Q4 2022 sales volume and pricing and costs associated with recruiting, travel, training and our ongoing SalesForce implementation.
Full Year Results
Reported net income and diluted EPS were $179.4 million and $4.64, respectively. Adjusted EPS increased 41.5% over 2021 to $5.59. Adjusted EBITDA increased 38.2% to $352.3 million.
The average number of WSEEs paid per month increased 17.7% over 2021 to 295,005 WSEEs. These strong results were driven by a 16.4% increase in paid WSEEs from new sales, an improvement in full year client retention to 85%, partially offset by lower net hiring in our client base when compared to 2021 when clients were rehiring coming off of the pandemic. Revenues in 2022 increased by 19.4% to $5.9 billion on the 17.7% increase in paid WSEEs and a 1.5% increase in revenue per WSEE.
Gross profit increased 23.3% on the increase in paid WSEEs and a 4.8% increase on a per WSEE per month basis, from $273 in 2021 to $286 in 2022 on a combination of higher pricing and lower than anticipated benefits costs.
Net income per WSEE per month increased 24.4% to $51 in 2022 from $41 in 2021. Adjusted EBITDA per WSEE per month increased 17.6% to $100 in 2022 compared to $85 in 2021.
Cash outlays in 2022 included the repurchase of approximately 770,000 shares of our common stock at a cost of $73.3 million, dividends totaling $76.6 million, and capital expenditures of $30.4 million. Adjusted cash totaled $224.3 million and $280 million is available under our $650 million credit facility.
“This past year highlighted the earnings strength, cash flow and capital efficiency of our business model,” said Douglas S. Sharp, executive vice president of finance, chief financial officer and treasurer. “We continue to make key investments in our growth, service and technology to drive the achievement of our long-term objectives and meet clients’ changing human resource needs.”
2023 Guidance
The company also announced its guidance for 2023, including the first quarter of 2023. 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.
|
|
Q1 2023 |
|
Full Year 2023(2) |
||||
|
|
|
|
|
|
|
|
|
|
Average WSEEs paid |
306,500 |
— |
309,300 |
|
317,000 |
— |
326,000 |
|
Year-over-year increase |
10% |
— |
11% |
|
7.5% |
— |
10.5% |
|
|
|
|
|
|
|
|
|
|
Adjusted EPS |
$2.40 |
— |
$2.60 |
|
$5.24 |
— |
$6.30 |
|
Year-over-year increase (decrease)(1) |
21% |
— |
31% |
|
(6)% |
— |
13% |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (in millions) |
$143 |
— |
$153 |
|
$353 |
— |
$409 |
|
Year-over-year increase(1) |
21% |
— |
29% |
|
0% |
— |
16% |
| ____________________________________ | ||
|
(1) |
Q1 2023 and full year 2023 year-over-year comparisons are impacted by elevated COVID-19 medical claims in Q1 2022, as well as higher interest income expectations in the first three quarters of 2023. |
|
|
(2) |
Year-over-year 2023 adjusted EPS comparisons are impacted by higher interest, depreciation and amortization expense expectations in 2023, which are not included in adjusted EBITDA. |
|
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.
Insperity will be hosting a conference call today at 9 a.m. ET to discuss these results, provide guidance for the first quarter and full year 2023 and answer questions from investment analysts. To listen in, call 888-506-0062 and use conference i.d. number 422538. 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. 47544. 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 2022 revenues of $5.9 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 future product offerings, including through acquisition and investment.
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 |
||||||
|
|
Dec. 31, |
Dec. 31, |
||||
|
(in thousands) |
2022 |
2021 |
||||
|
|
|
|
||||
|
Assets |
|
|
||||
|
Cash and cash equivalents |
$ |
732,828 |
|
$ |
575,812 |
|
|
Restricted cash |
|
49,779 |
|
|
46,929 |
|
|
Marketable securities |
|
33,068 |
|
|
31,791 |
|
|
Accounts receivable, net |
|
622,764 |
|
|
513,306 |
|
|
Prepaid insurance |
|
11,706 |
|
|
11,285 |
|
|
Income taxes receivable |
|
— |
|
|
12,413 |
|
|
Other current assets |
|
61,728 |
|
|
53,312 |
|
|
Total current assets |
|
1,511,873 |
|
|
1,244,848 |
|
|
Property and equipment, net |
|
199,992 |
|
|
210,723 |
|
|
Right-of-use leased assets |
|
56,532 |
|
|
62,830 |
|
|
Deposits and prepaid health insurance |
|
213,270 |
|
|
201,927 |
|
|
Goodwill and other intangible assets, net |
|
12,707 |
|
|
12,707 |
|
|
Deferred income taxes, net |
|
15,533 |
|
|
4,892 |
|
|
Other assets |
|
29,354 |
|
|
15,158 |
|
|
Total assets |
$ |
2,039,261 |
|
$ |
1,753,085 |
|
|
|
|
|
||||
|
Liabilities and stockholders’ equity |
|
|
||||
|
Accounts payable |
$ |
7,732 |
|
$ |
6,412 |
|
|
Payroll taxes and other payroll deductions payable |
|
556,085 |
|
|
467,892 |
|
|
Accrued worksite employee payroll cost |
|
513,397 |
|
|
409,653 |
|
|
Accrued health insurance costs |
|
53,402 |
|
|
50,001 |
|
|
Accrued workers’ compensation costs |
|
53,485 |
|
|
50,534 |
|
|
Accrued corporate payroll and commissions |
|
89,147 |
|
|
74,778 |
|
|
Other accrued liabilities |
|
80,122 |
|
|
69,303 |
|
|
Total current liabilities |
|
1,353,370 |
|
|
1,128,573 |
|
|
Accrued workers’ compensation costs, net of current |
|
179,629 |
|
|
192,694 |
|
|
Long-term debt |
|
369,400 |
|
|
369,400 |
|
|
Operating lease liabilities, net of current |
|
55,587 |
|
|
64,192 |
|
|
Total noncurrent liabilities |
|
604,616 |
|
|
626,286 |
|
|
Stockholders’ equity (deficit): |
|
|
||||
|
Common stock |
|
555 |
|
|
555 |
|
|
Additional paid-in capital |
|
151,144 |
|
|
109,179 |
|
|
Treasury stock, at cost |
|
(725,532 |
) |
|
(665,089 |
) |
|
Accumulated other comprehensive loss, net of tax |
|
(82 |
) |
|
(9 |
) |
|
Retained earnings |
|
655,190 |
|
|
553,590 |
|
|
Total stockholders’ equity (deficit) |
|
81,275 |
|
|
(1,774 |
) |
|
Total liabilities and stockholders’ equity |
$ |
2,039,261 |
|
$ |
1,753,085 |
|
|
Insperity, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
|
|
Three Months Ended Dec. 31, |
|
Year Ended Dec. 31, |
||||||||||||||
|
(in thousands, except per share amounts) |
2022 |
2021 |
Change |
|
2022 |
2021 |
Change |
||||||||||
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating results: |
|
|
|
|
|
|
|
||||||||||
|
Revenues(1) |
$ |
1,489,714 |
|
$ |
1,291,236 |
|
15.4 |
% |
|
$ |
5,938,818 |
|
$ |
4,973,070 |
|
19.4 |
% |
|
Payroll taxes, benefits and workers’ compensation costs |
|
1,248,676 |
|
|
1,120,612 |
|
11.4 |
% |
|
|
4,927,585 |
|
|
4,152,968 |
|
18.7 |
% |
|
Gross profit |
|
241,038 |
|
|
170,624 |
|
41.3 |
% |
|
|
1,011,233 |
|
|
820,102 |
|
23.3 |
% |
|
Salaries, wages and payroll taxes |
|
107,459 |
|
|
92,502 |
|
16.2 |
% |
|
|
430,945 |
|
|
379,171 |
|
13.7 |
% |
|
Stock-based compensation |
|
11,262 |
|
|
4,658 |
|
141.8 |
% |
|
|
50,080 |
|
|
40,623 |
|
23.3 |
% |
|
Commissions |
|
13,551 |
|
|
10,228 |
|
32.5 |
% |
|
|
45,672 |
|
|
34,922 |
|
30.8 |
% |
|
Advertising |
|
6,691 |
|
|
5,293 |
|
26.4 |
% |
|
|
37,503 |
|
|
29,097 |
|
28.9 |
% |
|
General and administrative expenses |
|
40,919 |
|
|
32,432 |
|
26.2 |
% |
|
|
156,134 |
|
|
124,413 |
|
25.5 |
% |
|
Depreciation and amortization |
|
10,293 |
|
|
10,832 |
|
(5.0 |
)% |
|
|
40,660 |
|
|
38,547 |
|
5.5 |
% |
|
Total operating expenses |
|
190,175 |
|
|
155,945 |
|
22.0 |
% |
|
|
760,994 |
|
|
646,773 |
|
17.7 |
% |
|
Operating income |
|
50,863 |
|
|
14,679 |
|
246.5 |
% |
|
|
250,239 |
|
|
173,329 |
|
44.4 |
% |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||||
|
|
|
5,492 |
|
|
217 |
|
2,430.9 |
% |
|
|
9,393 |
|
|
2,447 |
|
283.9 |
% |
|
|
|
(5,509 |
) |
|
(1,921 |
) |
186.8 |
% |
|
|
(14,207 |
) |
|
(7,458 |
) |
90.5 |
% |
|
Income before income tax expense |
|
50,846 |
|
|
12,975 |
|
291.9 |
% |
|
|
245,425 |
|
|
168,318 |
|
45.8 |
% |
|
Income tax expense |
|
12,648 |
|
|
3,267 |
|
287.1 |
% |
|
|
66,075 |
|
|
44,238 |
|
49.4 |
% |
|
Net income |
$ |
38,198 |
|
$ |
9,708 |
|
293.5 |
% |
|
$ |
179,350 |
|
$ |
124,080 |
|
44.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income per share of common stock |
|
|
|
|
|
|
|
||||||||||
|
Basic |
$ |
1.01 |
|
$ |
0.25 |
|
304.0 |
% |
|
$ |
4.70 |
|
$ |
3.22 |
|
46.0 |
% |
|
Diluted |
$ |
0.99 |
|
$ |
0.25 |
|
296.0 |
% |
|
$ |
4.64 |
|
$ |
3.18 |
|
45.9 |
% |
| ____________________________________ | ||
| (1) |
Revenues are comprised of gross billings less WSEE payroll costs as follows: |
|
|
Three Months Ended Dec. 31, |
|
Year Ended Dec. 31, |
|||||||
|
(in thousands) |
2022 |
2021 |
|
2022 |
2021 |
||||
|
|
|
|
|
|
|
||||
|
Gross billings |
$ |
11,015,667 |
$ |
9,636,414 |
|
$ |
40,126,910 |
$ |
33,318,693 |
|
Less: WSEE payroll cost |
|
9,525,953 |
|
8,345,178 |
|
|
34,188,092 |
|
28,345,623 |
|
Revenues |
$ |
1,489,714 |
$ |
1,291,236 |
|
$ |
5,938,818 |
$ |
4,973,070 |
|
Insperity, Inc. KEY FINANCIAL AND STATISTICAL DATA |
||||||||||||
|
|
Three Months Ended Dec. 31, |
|
Year Ended Dec. 31, |
|||||||||
|
|
2022 |
2021 |
Change |
|
2022 |
2021 |
Change |
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Average WSEEs paid |
|
307,506 |
268,978 |
14.3 |
% |
|
|
295,005 |
|
250,745 |
17.7 |
% |
|
|
|
|
|
|
|
|
|
|||||
|
Statistical data (per WSEE per month): |
|
|
|
|
|
|
|
|||||
|
Revenues(1) |
$ |
1,615 |
$1,600 |
0.9 |
% |
|
$ |
1,678 |
$ |
1,653 |
1.5 |
% |
|
Gross profit |
|
261 |
211 |
23.7 |
% |
|
|
286 |
|
273 |
4.8 |
% |
|
Operating expenses |
|
206 |
193 |
6.7 |
% |
|
|
215 |
|
215 |
— |
|
|
Operating income |
|
55 |
18 |
205.6 |
% |
|
|
71 |
|
58 |
22.4 |
% |
|
Net income |
|
41 |
12 |
241.7 |
% |
|
|
51 |
|
41 |
24.4 |
% |
| ____________________________________ | ||
|
(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 Dec. 31, |
|
Year Ended Dec. 31, |
|||||||
|
(per WSEE per month) |
2022 |
2021 |
|
2022 |
2021 |
||||
|
|
|
|
|
|
|
||||
|
Gross billings |
$ |
11,941 |
|
11,942 |
|
$ |
11,335 |
$ |
11,073 |
|
Less: WSEE payroll cost |
|
10,326 |
|
10,342 |
|
|
9,657 |
|
9,420 |
|
Revenues |
$ |
1,615 |
|
1,600 |
|
$ |
1,678 |
$ |
1,653 |
|
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, and • impact of dividends exceeding earnings under the two-class earnings per share method. |
Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):
|
|
Three Months Ended Dec. 31, |
|
Year Ended Dec. 31, |
||||||||||||||||||||||||
|
(in thousands, except per WSEE per month) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||||||||||
|
|
Per WSEE |
|
|
Per WSEE |
|
|
Per WSEE |
|
|
Per WSEE |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Payroll cost |
$ |
9,525,953 |
|
$ |
10,326 |
|
|
$ |
8,345,178 |
|
$ |
10,342 |
|
|
$ |
34,188,092 |
|
$ |
9,657 |
|
|
$ |
28,345,623 |
|
$ |
9,420 |
|
|
Less: Bonus payroll cost |
|
1,723,928 |
|
|
1,869 |
|
|
|
1,776,400 |
|
|
2,202 |
|
|
|
4,959,987 |
|
|
1,401 |
|
|
|
4,719,217 |
|
|
1,568 |
|
|
Non-bonus payroll cost |
$ |
7,802,025 |
|
$ |
8,457 |
|
|
$ |
6,568,778 |
|
$ |
8,140 |
|
|
$ |
29,228,105 |
|
$ |
8,256 |
|
|
$ |
23,626,406 |
|
$ |
7,852 |
|
|
% Change period over period |
|
18.8 |
% |
|
3.9 |
% |
|
|
20.4 |
% |
|
7.1 |
% |
|
|
23.7 |
% |
|
5.1 |
% |
|
|
14.5 |
% |
|
6.9 |
% |
Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):
|
(in thousands) |
December 31, |
|
December 31, |
||
|
|
|
||||
|
Cash, cash equivalents and marketable securities |
$ |
765,896 |
|
$ |
607,603 |
|
Less: |
|
|
|
||
|
Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions |
|
504,817 |
|
|
424,800 |
|
Client prepayments |
|
36,800 |
|
|
20,054 |
|
Adjusted cash, cash equivalents and marketable securities |
$ |
224,279 |
|
$ |
162,749 |
Following is a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):
|
|
Three Months Ended Dec. 31, |
||||||||||||
|
(in thousands, except per WSEE per month) |
2022 |
|
2021 |
||||||||||
|
|
Per WSEE |
|
|
Per WSEE |
|||||||||
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
38,198 |
|
$ |
41 |
|
|
$ |
9,708 |
|
$ |
12 |
|
|
Income tax expense |
|
12,648 |
|
|
15 |
|
|
|
3,267 |
|
|
5 |
|
|
Interest expense |
|
5,509 |
|
|
6 |
|
|
|
1,921 |
|
|
2 |
|
|
Amortization of SaaS implementation costs |
|
975 |
|
|
1 |
|
|
|
— |
|
|
— |
|
|
Depreciation and amortization |
|
10,293 |
|
|
11 |
|
|
|
10,832 |
|
|
13 |
|
|
EBITDA |
|
67,623 |
|
|
74 |
|
|
|
25,728 |
|
|
32 |
|
|
Stock-based compensation |
|
11,262 |
|
|
12 |
|
|
|
4,658 |
|
|
6 |
|
|
Adjusted EBITDA |
$ |
78,885 |
|
$ |
86 |
|
|
$ |
30,386 |
|
$ |
38 |
|
|
% Change period over period |
|
159.6 |
% |
|
126.3 |
% |
|
|
(19.7 |
)% |
|
(28.3 |
)% |
|
(in thousands, except per WSEE per month) |
Year Ended December 31, |
||||||||||||
|
2022 |
|
2021 |
|||||||||||
|
|
Per WSEE |
|
|
Per WSEE |
|||||||||
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
179,350 |
|
$ |
51 |
|
|
$ |
124,080 |
|
$ |
41 |
|
|
Income tax expense |
|
66,075 |
|
|
19 |
|
|
|
44,238 |
|
|
15 |
|
|
Interest expense |
|
14,207 |
|
|
4 |
|
|
|
7,458 |
|
|
2 |
|
|
Amortization of SaaS implementation costs |
|
1,923 |
|
|
1 |
|
|
|
— |
|
|
— |
|
|
Depreciation and amortization |
|
40,660 |
|
|
11 |
|
|
|
38,547 |
|
|
13 |
|
|
EBITDA |
|
302,215 |
|
|
86 |
|
|
|
214,323 |
|
|
71 |
|
|
Stock-based compensation |
|
50,080 |
|
|
14 |
|
|
|
40,623 |
|
|
14 |
|
|
Adjusted EBITDA |
$ |
352,295 |
|
$ |
100 |
|
|
$ |
254,946 |
|
$ |
85 |
|
|
% Change year over year |
|
38.2 |
% |
|
17.6 |
% |
|
|
(11.7 |
)% |
|
(17.5 |
)% |
Following is a reconciliation of net income (GAAP) to adjusted net income (non-GAAP):
|
|
Three Months Ended Dec. 31, |
|
Year Ended Dec. 31, |
||||||||||
|
(in thousands) |
2022 |
2021 |
|
2022 |
2021 |
||||||||
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
38,198 |
|
$ |
9,708 |
|
|
$ |
179,350 |
|
$ |
124,080 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
||||||||
|
Stock-based compensation |
|
11,262 |
|
|
4,658 |
|
|
|
50,080 |
|
|
40,623 |
|
|
Tax effect |
|
(2,824 |
) |
|
(1,191 |
) |
|
|
(13,483 |
) |
|
(10,677 |
) |
|
Total non-GAAP adjustments, net |
|
8,438 |
|
|
3,467 |
|
|
|
36,597 |
|
|
29,946 |
|
|
Adjusted net income |
$ |
46,636 |
|
$ |
13,175 |
|
|
$ |
215,947 |
|
$ |
154,026 |
|
|
% Change period over period |
|
254.0 |
% |
|
(32.0 |
)% |
|
|
40.2 |
% |
|
(15.1 |
)% |
Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS(non-GAAP):
|
|
Three Months Ended Dec. 31, |
|
Year Ended Dec. 31, |
||||||||||
|
|
2022 |
2021 |
|
2022 |
2021 |
||||||||
|
|
|
|
|
|
|
||||||||
|
Diluted EPS |
$ |
0.99 |
|
$ |
0.25 |
|
|
$ |
4.64 |
|
$ |
3.18 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
||||||||
|
Stock-based compensation |
|
0.29 |
|
|
0.12 |
|
|
|
1.30 |
|
|
1.04 |
|
|
Impact of dividends exceeding earnings |
|
— |
|
|
0.01 |
|
|
|
— |
|
|
— |
|
|
Tax effect |
|
(0.07 |
) |
|
(0.04 |
) |
|
|
(0.35 |
) |
|
(0.27 |
) |
|
Total non-GAAP adjustments, net |
|
0.22 |
|
|
0.09 |
|
|
|
0.95 |
|
|
0.77 |
|
|
Adjusted EPS |
$ |
1.21 |
|
$ |
0.34 |
|
|
$ |
5.59 |
|
$ |
3.95 |
|
|
% Change period over period |
|
255.9 |
% |
|
(30.6 |
)% |
|
|
41.5 |
% |
|
(14.9 |
)% |
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:
Cynthia Murga
Director, Public Relations
713-324-1414
Media@insperity.com