Insperity(US:NSP)2025-04-29 20:37Financial Performance - Revenues for Q1 2025 were $1,863 million, a 3.4% increase from $1,802 million in Q1 2024[12] - Gross profit decreased to $310 million in Q1 2025, down 10.1% from $345 million in Q1 2024[12] - Operating income fell to $68 million in Q1 2025, a decline of 37.0% compared to $108 million in Q1 2024[12] - Net income for Q1 2025 was $51 million, down 35.4% from $79 million in Q1 2024[12] - Basic net income per share decreased to $1.37 in Q1 2025 from $2.11 in Q1 2024, a decline of 35.0%[12] - Total revenue for Q1 2025 was $1,863 million, a 3% increase from $1,802 million in Q1 2024[34] - Revenues from the Northeast region increased by 3% to $526 million in Q1 2025 compared to $509 million in Q1 2024[34] - Basic earnings per share (EPS) for Q1 2025 was $1.34, compared to $2.14 in Q1 2024[57] Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $443 million in Q1 2025, compared to $31 million provided in Q1 2024[13] - The company reported a decrease in cash, cash equivalents, and restricted cash to $846 million at the end of Q1 2025, down from $978 million at the end of Q1 2024[13] - Cash and cash equivalents totaled $1,039 million as of March 31, 2025, compared to $693 million in 2024, indicating a significant increase[43] - The outstanding balance on the revolving credit facility was $369 million as of March 31, 2025, with an available borrowing capacity of $280 million[48] - As of March 31, 2025, the company had outstanding borrowings totaling $370 million under its Facility, which bears interest at a variable market rate[115] - The average interest rate for the three-month period ended March 31, 2025, was 6.2%[50] Operating Expenses - Total operating expenses increased to $242 million in Q1 2025, up from $237 million in Q1 2024[12] - Accrued workers' compensation costs were reduced by $7 million in Q1 2025 and $9 million in Q1 2024 due to changes in estimated losses related to prior periods[26] - The ending balance for incurred but not paid workers' compensation claims was $196 million as of March 31, 2025, down from $215 million in 2024, representing an 8.8% decrease[27] - The average discount rate for workers' compensation cost estimates was 4.0% in Q1 2025, down from 4.5% in Q1 2024[26] Shareholder Returns - The company declared and paid dividends totaling $23 million in Q1 2025, up from $21 million in Q1 2024, with a dividend per share of $0.60 compared to $0.57[55] - The company repurchased 45,000 shares under its Repurchase Program during the three months ended March 31, 2025, with an additional 1,407,764 shares authorized for repurchase[53] - The company withheld 179,065 shares to satisfy tax withholding obligations for long-term incentive and restricted stock unit awards during Q1 2025[54] Strategic Initiatives and Risks - The company plans to develop a joint solution with Workday, Inc., which may enhance future product offerings[10] - The company has faced challenges related to data security and third-party provider failures, which could impact future operations[10] - The company believes that the outcome of ongoing litigation will not have a material adverse effect on its financial position or results of operations[58] Accounts Receivable - The company reported unbilled accounts receivable of $819 million as of March 31, 2025, compared to $810 million at the end of 2024[32]