Insperity Announces Record Fourth Quarter and Full Year 2022 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 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,

2022

 

December 31,

2021

 

 

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

)%

The following is a reconciliation of GAAP to non-GAAP financial measures for first quarter and full year 2023 guidance:

 

Q1 2023

 

Full Year 2023

(in millions, except per share amounts)

Guidance

 

Guidance

 

 

 

 

Net income

$85 - $92

 

$163 - $204

Income tax expense

29 - 32

 

59 - 74

Interest expense

6

 

24

SaaS implementation amortization

1

 

6

Depreciation and amortization

11

 

46

EBITDA

132 - 142

 

298 - 354

Stock-based compensation

11

 

55

Adjusted EBITDA

$143 - $153

 

$353 - $409

 

 

 

 

Diluted EPS

$2.18 - $2.38

 

$4.20 - $5.26

Non-GAAP adjustments:

 

 

 

Stock-based compensation

0.29

 

1.42

Tax effect

(0.07)

 

(0.38)

Total non-GAAP adjustments, net

0.22

 

1.04

Adjusted EPS

$2.40 - $2.60

 

$5.24 - $6.30

 

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

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