Safe Harbor Statement Supplement to Earnings Release Non-GAAP Financial Measures CEO Commentary • New Strategic Planning and Development Organization focused on purposeful transformation in a changing HR environment, from data analytics and artificial intelligence to employee generational and psychological needs for flexibility and personal wellness support. • When we look into next year and beyond, we believe that we will be able to appropriately align our pricing strategy to our cost trends over time as w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 19001 Crescent Springs Drive Kingwood, Texas 77339 (Address of principal executive offices) (Exact name of registrant as specified in its charter) or Delaware 76-0479645 (State or other jurisdiction of incorporation or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition ...

Insperity, Inc. (NYSE:NSP) Q1 2023 Earnings Conference Call April 26, 2023 8:30 AM ET Company Participants Douglas Sharp - EVP, Finance & CFO Paul Sarvadi - Chairman & CEO Conference Call Participants Jeff Martin - ROTH Tobey Sommer - Truist Securities Andre Childress - Baird Andrew Nicholas - William Blair Operator Good morning. My name is Holly and I will be your conference operator today. I would like to welcome everyone to the Insperity First Quarter 2023 Earnings Conference Call. All participants are ...

CEO Commentary These strong results were against a backdrop of a changing dynamic in the marketplace due to persistent inflation, rising borrowing costs, a weakening economy, and an elevated uncertainty in the small and medium-size business community. Average Paid Worksite Employees 152,413 118,573 Q1 23 Q1 22 28.5% Non-GAAP Financial Measures This presentation contains non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EPS. Please see the Appendix for a further discussion. Q1 2023 earnings a ...

Business Operations - As of December 31, 2022, the company serviced an average of 307,506 worksite employees (WSEEs) per month in the fourth quarter[14] - The company operates 74 physical office locations across 43 markets, with multiple sales offices sharing physical locations to enhance economic efficiencies[14] - The company aims to serve approximately 10% of the overall small and medium-sized business community in terms of WSEEs[48] - As of December 31, 2022, the company operated 92 sales offices across 43 markets, employing a systematic market evaluation and selection process[54] - The company has a corporate headquarters in Kingwood, Texas, with a 33-acre campus that includes 700,000 square feet of office space[146] Services Offered - The PEO HR Outsourcing Solutions are designed to improve productivity and profitability for small and medium-sized businesses, relieving them of many employer-related administrative burdens[11] - The comprehensive service fee charged by the company consists of the payroll of WSEEs plus an additional percentage of the payroll cost[12] - The company’s Insperity Premier platform provides cloud-based human capital management solutions, offering role-based access to various HR functions[25] - The company offers a range of employee benefits, including health insurance, retirement plans, and employee well-being programs, which are typically not available to small and medium-sized businesses[24] - The company’s Workforce Optimization solution includes services such as payroll administration, employee performance management, and compliance assistance[20] Industry Context - The PEO industry is driven by the need for small and medium-sized businesses to focus on growth and productivity while managing complex regulatory environments[17] - The PEO industry is highly fragmented, with significant competition from traditional in-house HR services and other PEOs, but the company is one of the largest PEO service providers in the U.S.[60] - The company is subject to numerous federal, state, and local laws affecting its PEO HR Outsourcing Solutions, with 42 states having passed laws recognizing PEOs[68] - The company faces competition from large business services companies and national PEOs, which may offer lower-priced services, impacting growth and profitability[128] Financial Performance - Revenues for 2022 were $5.9 billion, an increase of 19.4% compared to $4.97 billion in 2021[204] - Net income rose 44.5% to $179.4 million, while diluted earnings per share increased 45.9% to $4.64[173] - Adjusted net income increased by 40.2% to $215.9 million in 2022[180] - Gross profit increased 23.3% to $1.0 billion, driven by the 17.7% growth in average WSEEs paid per month and a 4.8% increase in gross profit per WSEE[173] - Operating income for 2022 was $250.2 million, a 44.4% increase from $173.3 million in 2021[204] Client Retention and Growth - The client retention rate improved to approximately 85% in 2022 from 82% in 2021, with an average annual retention rate of 84% over the last five years[53] - The average number of clients with over 1,000 paid WSEEs increased from 1.9% in 2021 to 5.4% in 2022[31] - Average number of WSEEs paid from new client sales increased by 16.4% in 2022, with average client retention improving from 82% in 2021 to 85% in 2022[207] Regulatory and Compliance - The Small Business Efficiency Act (SBEA) established a federal regulatory framework for PEOs, clarifying employer responsibilities for payroll tax reporting[19] - The company has actively supported regulatory efforts that promote the PEO industry and protect clients and employees, with 42 states enacting relevant legislation[18] - The company assumes responsibility for federal and state employment taxes for wages paid to WSEEs, which includes obligations under various tax codes[72] - The company is subject to covenants under its credit facility that may restrict business activities, with potential adverse effects on liquidity if covenants are not met[98] Economic and Market Conditions - The company’s operations are significantly impacted by economic conditions, with potential adverse effects on demand for outsourced HR services during economic downturns[85] - Labor shortages and increased competition for skilled workers have led to higher turnover rates and could adversely affect the company's growth plans and client service delivery[95] - Inflationary pressures have increased operating costs, which may not be fully offset by price increases due to fixed client agreements, potentially reducing profitability[96] - The COVID-19 pandemic has created significant volatility and uncertainty, with ongoing risks to business operations and financial results[86] Insurance and Liability - The company maintains employment practice liability insurance to manage exposure to employee-related claims, with historically insignificant incurred costs exceeding annual premiums[45] - The company has a financial responsibility to Chubb for the first $1 million layer of claims per occurrence and for claims over $1 million, up to a maximum aggregate amount of $6 million per policy year for claims that exceed the first $1 million[114] - The company assumes liability for WSEE payroll and related costs, which could materially impact financial condition if clients fail to pay[101] - Health insurance costs are a significant portion of direct costs, and unexpected increases in claims could adversely affect profitability[104] Strategic Initiatives - The company has implemented a dual channel sales process, allowing BPAs to offer both PEO HR Outsourcing Solutions and Workforce Acceleration, increasing client acquisition opportunities[57] - The company has adopted a strategy to market and sell additional solutions, which involves risks such as entering highly regulated markets and potential over-valuation of targeted businesses[141] - The company is currently working on a multi-year project to replace its sales force automation and CRM systems, which is critical for maintaining service quality[132] Employee Metrics - The average number of trained BPAs increased to 601 in 2022 from 596 in 2021, indicating a slight improvement in training effectiveness[80] - The staff support ratio averaged 55% higher than the PEO industry average from 2019 to 2021, with gross profit per WSEE exceeding industry averages by 144% and operating income per WSEE by 223% during the same period[58] Future Outlook - The company expects the average number of paid WSEEs per month to be between 317,000 and 326,000 for the full year 2023, representing a growth of 7.5% to 10.5%[173] - The company is unable to determine the effect of the repeal of pending excise taxes on its business, which could impact client attraction and retention[109]

Insperity, Inc. (NYSE:NSP) Q4 2022 Earnings Conference Call February 9, 2023 9:00 AM ET Company Participants Douglas Sharp - EVP, Finance & CFO Paul Sarvadi - Chairman & CEO Conference Call Participants Daniel Maxwell - William Blair Tobey Sommer - Truist Securities Mark Marcon - Robert W. Baird Jeff Martin - ROTH Capital Partners Operator Good morning. My name is Matthew, and I'll be your conference operator today. I would like to welcome everyone to the Insperity Fourth Quarter 2022 Earnings Conference Ca ...

Appendix – Non-GAAP Financial Measures | --- | --- | --- | |-----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______________ to _______________ Commission File No. 1-13998 Insperity, Inc. (Exact name of registrant as specified in its charter) Delaware 76-0479645 ...

Insperity, Inc. (NYSE:NSP) Q3 2022 Results Earnings Conference Call October 31, 2022 10:00 AM ET Company Participants Douglas Sharp - Executive Vice President, Finance, Chief Financial Officer and Treasurer Paul Sarvadi - Management Director, Chairman and Chief Executive Officer Conference Call Participants Andrew Nicholas - William Blair Mark Marcon - Robert W. Baird & Co., Inc. Tobey Sommer - Truist Securities Jeff Martin - ROTH Capital Partners, LLC Operator Good morning. My name is Jenny and I will be y ...

| --- | --- | |---------------------------|-------| | | | | | | | | | | | | | Earnings Call and Webcast | | | Q3 2022 October 31, 2022 | | Safe Harbor Statement 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," "e ...