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Dec 31, 2019
Insperity Q4 2019 Earnings Report
Insperity reported an 11% increase in revenue for Q4 2019, driven by a 10% growth in worksite employees. Diluted EPS was $0.51, and adjusted EPS was $0.57. Net income was $20.4 million, and adjusted EBITDA reached $40.7 million.
Key Takeaways
Insperity's Q4 2019 results showed revenue growth of 11% year-over-year, driven by a 10% increase in worksite employees. However, net income and adjusted EBITDA decreased by 17% and 14%, respectively, compared to the fourth quarter of 2018. The company continues to address challenges related to healthcare claim costs.
Q4 revenue increased by 11% due to a 10% rise in worksite employees.
Q4 diluted EPS was $0.51, while adjusted EPS reached $0.57.
Q4 net income was $20.4 million, and adjusted EBITDA amounted to $40.7 million.
New health insurance policy feature added to help mitigate large claim risk in 2020.
Insperity
Insperity
Forward Guidance
Insperity provided guidance for Q1 2020 and Full Year 2020, including average WSEEs, Adjusted EPS and Adjusted EBITDA.
Positive Outlook
- Q1 2020 Average WSEEs between 238,000 and 240,200
- Q1 2020 Adjused EPS between $1.61 and $1.70
- Q1 2020 Adjusted EBITDA between $98 million and $103 million
- Full Year 2020 Average WSEEs between 249,700 and 254,400
- Full Year 2020 Adjusted EBITDA between $250 million and $274 million
Challenges Ahead
- Q1 2020 Adjusted EPS year-over-year increase (decrease) between (18.7)% and (14.1)%
- Q1 2020 Adjusted EBITDA year-over-year increase (decrease) between (3.4)% and 1.5%
- Full Year 2020 Adjusted EPS year-over-year increase (decrease) (10)%
- The higher effective tax rate is expected to reduce both our Q1 and full year 2020 earnings by approximately $0.28 per share.
- Full Year 2020 Adjusted EPS between $3.73 and $4.16