Insperity(US:NSP)2024-08-06 17:32Financial Performance - Revenues for Q2 2024 were $1,605 million, a 1.3% increase from $1,585 million in Q2 2023[9] - Gross profit for Q2 2024 was $260 million, up 15.6% from $225 million in Q2 2023[9] - Net income for the six months ended June 30, 2024, was $97 million, compared to $107 million for the same period in 2023, reflecting a decrease of 9.3%[10] - Operating income for Q2 2024 was $23 million, an increase from $16 million in Q2 2023, representing a 43.8% growth[9] - The company reported a basic net income per share of $0.48 for Q2 2024, compared to $0.34 for Q2 2023, marking a 41.2% increase[9] - Net income for the three months ended June 30, 2024, was $18 million, compared to $12 million for the same period in 2023, representing a 50% increase[51] - Adjusted net income decreased by 7% to $119 million in the first six months of 2024, compared to $128 million in the same period of 2023[95] Cash Flow and Liquidity - Cash flows from operating activities for the six months ended June 30, 2024, were $51 million, a significant improvement from a cash outflow of $70 million in the same period of 2023[10] - Cash and cash equivalents at the end of Q2 2024 were $676 million, down from $693 million at the end of 2023[6] - As of June 30, 2024, the total cash, cash equivalents, and marketable securities amounted to $694 million, a decrease from $746 million on December 31, 2023[34] - The company reported cash and cash equivalents of $676 million as of June 30, 2024, compared to $580 million for the same period in 2023, reflecting a year-over-year increase of 16.5%[38] - The outstanding balance on the revolving credit facility was $369 million as of June 30, 2024, with an available borrowing capacity of $280 million[44] - The revolving credit facility has a current borrowing capacity of $650 million, which is available for working capital and general corporate purposes[89] Revenue and Billing - Total revenue for the second quarter of 2024 was $1,605 million, a 1% increase from $1,585 million in the same period of 2023[32] - Revenue for the first six months of 2024 reached $3,407 million, up 2% from $3,355 million in the first half of 2023[32] - Gross billings for the second quarter of 2024 were $10,361 million, compared to $10,245 million in the second quarter of 2023[33] - Revenues per WSEE per month increased by 3%, or $46, in Q2 2024[59] - Revenues per WSEE per month increased by $50 due to a 3% rise in average pricing[69] Expenses and Costs - Operating expenses for Q2 2024 increased 13% to $237 million compared to $209 million in Q2 2023[74] - Salaries for corporate and sales staff increased 15% to $126 million in Q2 2024, primarily due to a 6% increase in headcount[75] - General and administrative expenses for Q2 2024 rose 30% to $57 million, driven by increased software licensing and professional services fees[76] - The cost of group health insurance and related employee benefits decreased by $18 per WSEE per month in Q2 2024 compared to Q2 2023[66] - Workers' compensation costs decreased by 5%, or $1 per WSEE per month, in YTD 2024 compared to YTD 2023[70] Shareholder Returns - The company paid dividends totaling $44 million in the first half of 2024, compared to $42 million in the same period of 2023[10] - Total dividends declared and paid during the six months ended June 30, 2024, amounted to $44 million, up from $42 million in the same period of 2023[50] - The company repurchased 203,744 shares of common stock under its Repurchase Program during the six months ended June 30, 2024[48] Assets and Liabilities - Total current assets as of June 30, 2024, were $1,621 million, slightly up from $1,595 million at the end of 2023[7] - Total liabilities decreased to $1,007 million as of June 30, 2024, from $1,013 million at the end of 2023[7] - As of June 30, 2024, unbilled accounts receivable amounted to $727 million, up from $669 million at December 31, 2023[31] - Payroll taxes and other payroll deductions payable were $504 million as of June 30, 2024, down from $566 million at the end of 2023[40] Health Insurance and Claims - The estimated incurred but not reported claims for health insurance were based on claims processed, completion rates, and participant demographics[21] - The company recorded a decrease of $26 million in benefits costs for the first six months of 2024 due to changes in estimated run-off related to prior periods[22] - Workers' compensation costs were reduced by $17 million for the first six months of 2024 due to changes in estimated losses related to prior periods[25] - The accumulated cash surplus required to be maintained in the health insurance plan is $9 million, with a surplus of $18 million as of June 30, 2024[22] - Premiums owed to United at June 30, 2024, were $35 million, included in accrued health insurance costs[94] Tax and Regulatory - Effective income tax rate for the first six months of 2024 was 29%, up from 24% in the same period of 2023[80] - The company had $97 million in funds received from the IRS related to employee retention tax credits, which were distributed to clients in early July 2024[37] Adjusted Metrics - Adjusted EBITDA increased by 29% to $66 million in Q2 2024[58] - Adjusted EBITDA for the six months ended June 30, 2024, was $208 million, compared to $114 million for the same period in 2023, marking an 83% increase[86] - Total non-GAAP adjustments for net income in the three months ended June 30, 2024, amounted to $15 million, leading to an adjusted net income of $33 million, a 32% increase year-over-year[87]