Insperity, Inc. (NSP) has reported 50.18 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $9.52 million, or $0.45 a share in the quarter, compared with $6.34 million, or $0.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.26 million, or $0.58 a share compared with $7.95 million or $0.33 a share, a year ago.
Revenue during the quarter grew 12.16 percent to $729.07 million from $650.01 million in the previous year period. Gross margin for the quarter expanded 23 basis points over the previous year period to 15.16 percent. Total expenses were 98.02 percent of quarterly revenues, down from 98.46 percent for the same period last year. This has led to an improvement of 44 basis points in operating margin to 1.98 percent.
Operating income for the quarter was $14.47 million, compared with $10.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $23.07 million compared with $16.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 58 basis points in the quarter to 3.16 percent from 2.59 percent in the last year period.
"Our strong fourth quarter results capped off a record setting 2016 and set the stage for continuing double-digit worksite employee growth and profitability in 2017," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "A successful year-end transition, combined with a record level of trained Business Performance Advisors positions us for accelerating worksite employee growth over the course of the year."
For the first-quarter, Administaff De projects net income to be in the range of $35 million to $37 million. The company expects diluted earnings per share to be in the range of $1.66 to $1.75. On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.78 to $1.87.
For financial year 2017, Administaff De projects net income to be in the range of $76 million to $81 million. The company expects diluted earnings per share to be in the range of $3.64 to $3.85. The company expects diluted earnings per share to be in the range of $4.21 to $4.42 on adjusted basis.
Working capital drops significantly
Insperity, Inc. has witnessed a decline in the working capital over the last year. It stood at $39.36 million as at Dec. 31, 2016, down 27.56 percent or $14.97 million from $54.34 million on Dec. 31, 2015. Current ratio was at 1.07 as on Dec. 31, 2016, down from 1.11 on Dec. 31, 2015.
Days sales outstanding went up to 17 days for the quarter compared with 14 days for the same period last year.
At the same time, days payable outstanding went up to 35 days for the quarter from 31 for the same period last year.
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